In Dongtan in Hwaseong, Guri, Giheung and other areas newly added as regulated areas at the end of last month, the pace of apartment price gains slowed. However, in Seongnam, expectations for redevelopment are widening the gains again.
According to the weekly apartment price trend for the third week of July released by the Korea Real Estate Board (REB) on the 23rd, apartment price growth in Dongtan District of Hwaseong slowed sharply to 0.25% this week from 0.73% last week. After posting a 2.22% rise in the third week of June, Dongtan District's apartment prices have seen their weekly gains narrow for five straight weeks through this week.
Apartment prices in Giheung District of Yongin also saw gains narrow to 0.49% this week from 0.59% last week, and Guri City slowed to 0.27% from 0.31%. These areas were additionally designated as speculative overheating districts and adjustment target areas starting on July 1. To prevent speculation and protect end users, they were also designated as land transaction permit zones from July 5 through Dec. 31, 2027. As a result, gap investment has been blocked and buying interest has weakened, which is seen as the reason for the smaller gains.
Nam Hyeok-woo of Woori Bank's Real Estate Research Institute said, "In Dongtan, concerns about short-term price increases and a slowdown in transactions due to designation as a regulated area have clearly reduced the pace of gains," adding, "Giheung and Guri have also entered a lull in transactions due to factors such as reduced bank lending following designation as regulated areas."
Seoul apartment price gains also narrowed. The Seoul apartment sale price index rose 0.27%. That is 0.03 percentage point lower than the previous week's 0.3%. Caution ahead of the government's tax reform plan, which signaled stronger holding taxes, appears to have affected the market.
However, steady demand and rising transactions continued mainly in key complexes with good residential conditions and in areas with development expectations. Seongbuk District posted the highest gain, up 0.47% mainly in the large complexes of Gireum and Hawolgok-dong. It was followed by Nowon District (0.43%), Jung District (0.42%), Jongno District (0.40%) and Jungnang District (0.40%).
South of the Han River, among 11 districts, Guro District rose 0.38%, led by small and mid-sized homes in Gaebong and Sindorim-dong, marking a large gain. Yeongdeungpo District (0.35%), Geumcheon District (0.32%) and Gangseo District (0.29%) also saw relatively large gains. Among the three Gangnam districts, Songpa District climbed 0.29%, posting a larger gain. Rising transactions centered on Jamsil and Geoyeo-dong. Gangnam and Seocho each rose 0.1%, with smaller gains than the previous week.
Gyeonggi Province (0.21%→0.17%) and Incheon (0.03%→0.01%) saw slower gains than last week. Apartment prices in the provinces shifted to flat after a 0.01% rise the previous week. The nationwide apartment price growth also eased to 0.09% this week from 0.11% last week.
In Gyeonggi Province, Yeongtong District in Suwon, which had benefited from the semiconductor belt, saw its gains slow to 1.19% in an early-month survey and 0.64% last week, and they decreased further to 0.34% in this week's survey. In Namyangju and Osan City, where a balloon effect is appearing as non-regulated areas, prices rose 0.26% and 0.13%, respectively, smaller gains than last week (0.27%, 0.14%).
In contrast, Bundang District in Seongnam City, which is competing for the second round of special maintenance zone designations in Gyeonggi Province, saw gains widen to 0.58% this week from 0.42% last week. Sujeong District (0.19%→0.44%) and Jungwon District (0.39%→0.49%) also posted larger gains, and Seongnam City overall (0.54%) saw a bigger increase than last week (0.38%).
Yang Ji-young, a senior adviser at Shinhan Premier Pathfinder, explained, "As the designation of Bundang as a leading redevelopment district and the procedures for the second special maintenance zone proceed, price increases are occurring as such expectations spread even though it is a regulated area."
Nationwide apartment jeonse prices rose 0.11%, the same as last week. In Seoul, apartment jeonse prices saw gains narrow to 0.27% this week from 0.28% last week. In Gyeonggi Province, the increase widened slightly to 0.17% from 0.16%.