The increases in sales and jeonse prices of apartments in Seoul widened for the third straight week. Gains in Gangnam-area apartment prices, which had slowed due to quick sales by multiple-home owners seeking tax savings, expanded, and the upward trend in prices in mid- to lower-tier districts is continuing.
According to the weekly apartment price trends for the third week of May (as of May 18) that the Korea Real Estate Board (REB) released on the 21st, apartment sales prices in Seoul rose an average of 0.31% from the previous week. The increase widened by 0.03 percentage points (p) from the prior week, marking a third consecutive week of expansion.
The board said, "While some areas where buyer watchfulness has deepened saw transaction slowdowns, other areas centered on complexes pushing redevelopment and complexes with favorable residential conditions saw demand concentrate and rising contracts conclude, resulting in overall gains across Seoul."
The three Gangnam districts, including Gangnam District, which turned higher the week before, all expanded their gains. Songpa District rose 0.38%, Seocho District 0.26%, and Gangnam District 0.2%.
Seongbuk District (0.49%), Seodaemun District (0.46%), Gangbuk District (0.45%), Gwanak District (0.45%), Gangseo District (0.43%), Gwangjin District (0.43%), Dobong District (0.37%), Guro District (0.33%), and Nowon District (0.32%), among others, also stayed strong. Seodaemun District recorded its biggest increase since the second week of March 2014 (0.46%), and Gangbuk District posted its largest gain since the second week of September 2018 (0.46%).
Nam Hyuk-woo of Woori Bank's Real Estate Research Institute said, "As the strength in mid- to lower-tier transaction and prices in Seoul persists, some sellers in these areas may trade up to dwellings around 1.5 billion to 2 billion won in parts of mid-tier districts and the Han River belt by using some loans and other assets," and added, "We need to see whether this trend will spill over to higher-tier areas."
Gyeonggi Province as a whole rose 0.12%. Gwangmyeong (0.68%), Anyang Dongan District (0.48%), and Seongnam Bundang District (0.48%) showed strong gains, and southern Gyeonggi areas with good access to semiconductor business sites—Yongin Suji District (0.20→0.38%), Suwon Yeongtong District (0.26%→0.35%), and Hwaseong Dongtan District (0.35%→0.46%)—also saw larger increases on expectations for the semiconductor cycle. Incheon (0.09%→0.12%) widened its gain by 0.03 percentage points from the prior week, and the broader Seoul metropolitan area rose 0.17%.
Non-capital regions (0.01%) extended their weakness for a fourth week. The five major metropolitan cities fell 0.03%, and Sejong fell 0.11%. The eight provinces (0.00%) were flat. Nationwide sales prices rose 0.07% from the prior week.
Nationwide jeonse prices rose 0.11% from the prior week. In Seoul (0.28%→0.29%), as lease demand continued, inquiries increased mainly in station areas and large complexes with favorable residential conditions, widening gains for a third straight week. Songpa District (0.51%), Seongdong District (0.49%), Seongbuk District (0.47%), Gwangjin District (0.42%), Dobong District (0.42%), Nowon District (0.39%), and Gangdong District (0.29%) saw relatively high jeonse price increases.
Gyeonggi (0.18%→0.15%) saw higher increases in Gwangmyeong (0.72%), Hwaseong Dongtan District (0.42%), and Anyang Dongan District (0.38%). Incheon (0.09%→0.12%) widened its gain by 0.03 percentage points from the prior week. The broader Seoul metropolitan area's increase was found at 0.19%. In non-capital regions (0.03%), the five major metropolitan cities rose 0.04%, Sejong rose 0.12%, and the eight provinces rose 0.02%.