As President Lee Jae-myung's pressure on multiple-home owners continues, the rise in Seoul apartment sale prices slowed for the third straight week, centered on the three Gangnam districts (Gangnam, Seocho, Songpa) and areas adjacent to the Han River.
According to the weekly apartment price trends for the third week of Feb. (as of Feb. 16) released on the 20th by the Korea Real Estate Board (REB), the average increase in Seoul apartment sale prices was 0.15%, narrowing by 0.07 percentage points from the previous week. Seoul's rate had eased to 0.27% in the first week of Feb., down 0.04 percentage points from the prior week, and slowed again to 0.22% in the second week.
This appears to reflect the impact of the government ending the temporary suspension of heavy capital gains taxes on multiple-home owners on May 9 this year while rolling out supplements such as deferring the move-in requirement after purchase if there is a tenant, and, in an atmosphere where the president has been mentioning regulations like tighter extensions on loans for multiple-home owners day after day, a stream of urgent, price-cut listings coming to market.
An official at the REB explained, "Due to the holiday period, transactions and purchase inquiries decreased, but demand concentrated on large complexes, areas near subway stations, school districts with high preference, and complexes pushing redevelopment, lifting Seoul overall."
In particular, the slowdown in the three Gangnam districts (Seocho, Gangnam, Songpa), where urgent listings are appearing one after another, is notable. Seocho District recorded 0.05%, with the rate narrowing by 0.08 percentage points from the previous week, and Gangnam District was 0.01%, close to flat. Songpa District (0.06%) also saw its increase narrow by 0.03 percentage points from a week earlier.
By contrast, non-Gangnam areas and mid- to low-priced regions such as Seongdong District (0.29%), Gangseo District (0.29%), Gwangjin District (0.27%), Seongbuk District (0.27%), Gwanak District (0.27%), Guro District (0.25%), Dongdaemun District (0.23%), and Yeongdeungpo District (0.23%) posted relatively higher increases.
Gyeonggi Province (0.13%→0.08%) also saw overall gains narrow, with sharp slowdowns detected in some areas such as Dongan District in Anyang (0.68%→0.26%), down 0.42 percentage points, and Gwangmyeong (0.54%→0.17%), down 0.37 percentage points. Gwacheon (-0.03%) turned lower for the first time in 88 weeks since switching to gains in the first week of June 2024.
Suji District in Yongin, where the prior week's rise had climbed to 0.75%, recorded 0.55%, narrowing by 0.20 percentage points, and Guri (0.55%→0.38%) also saw its increase shrink by 0.17 percentage points. Dongtan District in Hwaseong (0.22%) saw its rate increase by 0.09 percentage points.
Incheon (0.03%) was unchanged from the previous week, and the greater Seoul area overall (0.14%→0.10%) narrowed by 0.04 percentage points. In non-capital regions (0.02%), the five major metropolitan cities and the eight provinces each rose 0.02%, and Sejong (0.00%) was flat.
The nationwide average increase in apartment sale prices was 0.06%, slowing by 0.03 percentage points from the prior week.
Nationwide apartment jeonse prices rose an average 0.07%. In Seoul (0.11%→0.08%), the gain narrowed, but as jeonse listings kept declining, overall prices rose with rental demand holding up around preferred complexes such as large ones near subway stations.
Nowon District (0.21%) saw larger jeonse gains mainly in older complexes in Sanggye and Junggye, Seongdong District (0.20%) centered on large complexes in Hawangsimni and Oksu, and Seongbuk District (0.15%), Gangbuk District (0.15%), and Dongdaemun District (0.14%) were also on the higher side.
Incheon rose 0.06% and Gyeonggi 0.11%, with the greater Seoul area up 0.09% overall. Jeonse prices outside the capital region rose 0.05%. The five major metropolitan cities and Sejong each climbed 0.07%, and the eight provinces rose 0.03%.