As prices of ultra-high-end apartments in Seoul fell, the pace of gains in apartment sale prices across the city slowed in April. Meanwhile, the shortage of jeonse rentals in Seoul deepened, and the growth rate of jeonse prices steepened. In particular, in Gangbuk District, jeonse prices jumped more than 3%, marking the highest increase on record. The median jeonse price also topped 600 million won for the first time in 3 years and 7 months.
According to the April nationwide dwelling price trends released by KB Real Estate on the 26th, apartment sale prices in Seoul this month (based on a survey on the 13th) rose 1.00%, with the pace of increase slowing from last month's 1.43%.
Of the 25 districts, outer areas of Seoul such as Dongdaemun District (1.99%), Gangseo District (1.88%), Gangbuk District (1.75%), and Seongbuk District (1.69%) led the rise in apartment prices.
Seoul apartment sale prices rose 1.00%, with the pace of gains slowing from the previous month's 1.43%. Areas such as Dongdaemun District (1.99%), Gangseo District (1.88%), and Gangbuk District (1.75%) led the increases.
By contrast, Gangnam District fell 0.29%, widening the decline from last month's minus 0.16% and extending a two-month downturn. Seocho District (0.21%) also saw a slower pace of gains from the previous month, posting a lower rise than other areas.
The KB Leading Apartments 50 Index, which tracks the top 50 complexes selected by KB, came in at 99.3, down 0.48% from the previous month. Based on last month's minus 0.73%, it turned downward for the first time in 2 years and 1 month since Feb. 2024 (minus 0.06%).
KB Real Estate analyzed, "As the end of the grace period for heavy capital gains taxes on multiple-home owners approaches, last month saw a steep decline as transaction focused on quick-sale listings centered on areas dense with expensive large complexes."
As prices for mid- to low-priced apartments in Seoul rose and those for ultra-high-end apartments fell, the "quintile ratio," an indicator of price polarization, declined for the second straight month to 6.7 this month. The quintile ratio was 6.9 in February and 6.8 in March. The quintile ratio divides dwellings into five groups by price and is the average price of the top 20% (fifth quintile) divided by the average price of the bottom 20% (first quintile). A higher figure indicates more severe polarization.
While the rise in Seoul apartment sale prices narrowed, the uptrend in jeonse prices steepened. The growth rate of Seoul apartment jeonse prices was 0.86%, up 0.11 percentage point from the previous month's 0.75%.
By district, Gangbuk District (3.86%) saw jeonse prices surge more than 3%, marking the highest increase on record. It was followed by Seongbuk District (1.86%), Seongdong District (1.32%), Gwanak District (1.31%), Dobong District (1.15%), Gangseo District (1.12%), and Dongdaemun District (1.00%).
The median jeonse price for Seoul apartments was 600 million won this month, topping 600 million won again for the first time in 3 years and 7 months since September 2022 (606.58 million won).
Nationwide, apartment prices rose 0.32%. In the greater Seoul area, apartment prices climbed 0.55%, with Gyeonggi up 0.43% and Incheon up 0.04%. In Gyeonggi, Suji District in Yongin (2.08%) jumped more than 2%, the highest increase. It was followed by Jungwon District in Seongnam (1.89%), Gwangmyeong (1.87%), Guri (1.70%), Dongan District in Anyang (1.56%), Hanam (1.53%), and Sujeong District in Seongnam (1.23%).
In the five major metropolitan cities (Gwangju, Daejeon, Daegu, Ulsan, and Busan) and other regions (the eight provincial areas), apartment price growth rates were 0.04% and 0.14%, respectively.
Apartment jeonse prices rose 0.44% nationwide, 0.65% in the greater Seoul area, 0.31% in the five major metropolitan cities, and 0.17% in other regions.
Including apartments and single-family, multi-household, multi-unit, and row houses, nationwide dwelling sale and jeonse prices each rose 0.22% and 0.31% this month.
This month, the nationwide dwelling sale price outlook index and jeonse price outlook index were 102.0 and 117.5, up 2.1 points and 1.6 points from the previous month.
In Seoul, the sale price outlook index and jeonse price outlook index rose 11.2 points and 7.0 points to 112.0 and 132.4. Both exceeded the baseline of 100, indicating a predominance of expectations for increases.