This week, apartment prices in Seoul rose across all 25 districts. Centered on the Han River belt, including Seongdong, Mapo, and Gwangjin, they climbed 0.6% to 0.7% in a week, and Dobong, which was flat the previous week, also turned upward. These are weekly apartment sale price growth rate statistics released by the Korea Real Estate Board (REB). The government and the ruling Democratic Party of Korea are seeking to abolish these statistics, saying they fuel market confusion.
According to the Korea Real Estate Board (REB) on the 2nd, the weekly growth rate of Seoul apartment sales prices in the final week of September (as of Sept. 29) was tallied at 0.27%. That is 0.08 percentage points (p) higher than the previous week's 0.19%. The weekly growth rate for Seoul apartments has risen for four straight weeks since last month. In particular, this survey showed increases in all 25 districts of Seoul, including 14 districts in northern Seoul and 11 in southern Seoul.
By district, the increase widened in the Han River belt, including Mapo, Seongdong, Gwangjin, and Gangdong. Seongdong rose 0.78% in a week, the largest gain among districts. It was followed by Mapo (0.69%), Gwangjin (0.65%), Songpa and Gangdong (0.49%), and Yongsan (0.47%).
Jung (0.40%), Yeongdeungpo (0.32%), Dongdaemun (0.25%), Seodaemun (0.21%), Seongbuk (0.12%), as well as Nowon (0.08%) and Gangbuk (0.05%), also rose across the board. Dobong, which recorded flat (0%) the previous week, rose 0.04% from the week before. Gwacheon in Gyeonggi, adjacent to Gangnam (0.54%), and Bundang in Seongnam (0.97%) also continued to climb.
Yang Ji-young, a senior advisor at Shinhan Premier Pathfinder, said, "Since the government announced its June 27 real estate measures limiting Seoul metropolitan area mortgage loans to 600 million won, fear of additional curbs has been spreading in the market," and added, "With uncertainty over when stronger regulations might come, demand is rising, led by end users who think they should buy now."
Possibilities continue to be raised for additional steps such as expanding the designation of regulatory areas (adjustment targets and overheated speculation zones) or designating land transaction permit zones. Once designated a regulatory area, conditions for loans, taxes, and subscriptions are tightened. Currently, the regulatory areas within Seoul are the three Gangnam districts and Yongsan. Kim Yun-duk, Minister of Land, Infrastructure and Transport, said at a press briefing on Sept. 29, "If additional measures are needed, it is only natural to introduce them. We will approach it with a comprehensive package rather than one-off treatments."
Park Won-gap, chief real estate expert at KB Kookmin Bank, said, "The impatience of home seekers is one factor behind the rise in home prices," adding, "In fact, transactions in Seongdong and Mapo, cited as top candidates for designation as land transaction permit zones, surged in September."
Including Seoul, the overall growth rate for the broader metropolitan area came to 0.08%. In Gyeonggi, the increase widened from 0.05% the previous week to 0.06%, while Incheon held steady at 0.04%. In the provinces, the five metropolitan cities rose 0.04% from the previous week, and Sejong climbed 0.39%. The eight provinces also rose 0.01%.
Meanwhile, the government and the Democratic Party of Korea have agreed that the REB's weekly apartment price statistics should be abolished and are preparing measures. They say the figures' accuracy and reliability are low, exacerbating market confusion. In connection with this, on Sept. 30, at the National Assembly Members' Office Building in Yeouido, Seoul, a forum titled "Measures to improve dwellings price statistics," co-hosted by Democratic Party of Korea lawmakers Lee Yeon-hee and Yeom Tae-young, the Korea Housing Association, and the Korea Urban Research Institute, was held.