The pace of gains in Seoul apartment prices widened for the second straight week. Apartments priced at 1.5 billion won or less, where loan regulations are relatively looser, are analyzed to have led the increase.
According to the weekly apartment price trends from the Korea Real Estate Board (REB) on Apr. 2, Seoul apartment prices in the fifth week of March (as of the 30th) rose 0.12% from the previous week. The pace of increase expanded from 0.05% in the third week of March to 0.06% last week, and doubled this week. In terms of the rate of increase, it is the largest in four weeks since the third week of February (0.15%).
With this, Seoul apartment prices have risen every week from the first week of February last year to the fifth week of March. The Korea Real Estate Board (REB) has announced apartment prices on a weekly basis. However, there were cases where two weeks were combined and announced as one due to the Chuseok holiday and other reasons. Because of this, the Seoul apartment prices announced that day marked increases for 61 consecutive weeks on a period basis and for 60 consecutive weeks on an announcement basis.
A longer stretch of gains in Seoul apartment prices than this occurred for 85 consecutive weeks from the second week of June 2020 to the third week of January 2022, at the end of the Moon Jae-in administration. Even now, there is no longer streak than that period. The 59-week rise from the second week of September 2017 to the fifth week of October 2018, early in the Moon Jae-in administration, had been the second-longest streak on record, but this time it has been surpassed.
The Korea Real Estate Board (REB) said, "Although there are complexes where listings have locally increased, rising transactions centered on station-area, large-scale complexes with good residential conditions and redevelopment-driven complexes led the overall rise in Seoul."
Park Won-gap, chief real estate expert at KB Kookmin Bank, said, "Older people, including baby boomers, have put properties on the market out of concern over holding taxes and other tax burdens, leading to continued price declines in the Gangnam area and parts of the Han River belt," adding, "But younger buyers in their 30s and 40s moved to purchase mainly mid- to low-priced homes due to a stock market boom and a perceived lack of supply, expanding the average rate of increase in Seoul apartment prices." Park added, "It is the result of a 'dreaming different dreams' situation between younger and older generations in response to policy signals."
By each of the 25 autonomous districts, the rise in Seoul home prices was led by areas crowded with mid- to low-priced apartments. Seongbuk, Seodaemun and Gangseo each rose 0.27%, the highest increases. Jung (0.26%), Gwanak (0.26%) and Nowon (0.24%) also posted relatively high gains. In Seongbuk, prices rose mainly in small and midsize complexes in Gireum and Jeongneung-dong; in Seodaemun, increases centered on large complexes in Namgajwa and Hong-eun-dong; and in Gangseo (0.27%), gains were led by station-area neighborhoods in Gayang and Yeomchang-dong. In Jung (0.26%), increases were focused on Sindang and Hwanghak-dong, and in Nowon (0.24%), apartment prices rose mainly in Wolgye and Junggye-dong.
The Gangnam area continued to decline. Apartment prices in Gangnam fell 0.22%, with the decline widening from the previous week (-0.17%). Seocho (-0.09%→-0.02%) and Songpa (-0.07%→-0.01%) saw narrower declines.
There were also changes in the adjustment trend in major areas along the Han River. Seongdong's decline narrowed from -0.03% to -0.02%, and Gangdong, which fell 0.06% the previous week, returned to flat (0.0%). Yongsan, which was among the first to turn downward on Feb. 23 along with the three Gangnam districts (Gangnam, Seocho and Songpa), turned upward (0.04%) for the first time in five weeks, and Dongjak also shifted to gains (-0.04%→0.04%).
Nam Hyeok-woo of the Woori Bank Real Estate Research Institute said, "It appears that some demand for upgrading has flowed from Seoul's mid- to low-priced areas, which showed price strength in the first half of this year, to the Han River belt," adding, "Although loan regulations for multiple-home owners and others have recently been tightened, in the market at 1.5 billion won or less there is relatively low possibility of listings coming out, and there is also a shortage of jeonsei and monthly rental listings, so the price uptrend driven by end-user demand is expected to continue."
Meanwhile, apartment prices in Gyeonggi Province also rose 0.09%, with the pace of increase widening from the previous week (0.06%). Bundang in Seongnam saw its increase expand sharply from 0.08% to 0.29%. Suji in Yongin (0.24%→0.36%) and Giheung (0.20%→0.32%) also posted larger gains. In contrast, Gwacheon maintained a 0.11% decline, the same as the previous week.
Looking at the jeonsei market, Seoul apartment jeonsei prices rose 0.15%, maintaining the same rate of increase as the previous week. The Seoul metropolitan area rose 0.13%, and the nation rose 0.09%.