Apartment prices in Dongtan New Town in Hwaseong, Gyeonggi, rose more than 6% in a month, marking a record high growth rate. Jeonse prices also posted gains in the 3% range, prompting assessments that housing costs for end users are rising. In Seoul, both sales and jeonse prices continued to climb, but the pace of increase slowed slightly.
According to the "July national housing price trend" KB Real Estate released on the 26th, apartment sale prices in Dongtan District, Hwaseong, rose 6.25% from the previous month. Following 4.16% in June, it set a record high growth rate for the second consecutive month.
Dongtan's growth rate was the highest among all cities, counties, and districts nationwide. It was more than 15 times the nationwide apartment sale price growth rate of 0.41% during the same period.
Buoyed by the sharp rise in Dongtan home prices, Gyeonggi apartment sale prices also climbed 0.87%, widening from 0.65% in June. Yeongtong District in Suwon rose 3.06%, while Gwangmyeong gained 2.52%, Guri 2.29%, and Suji District in Yongin 1.94%. Hanam and Jungwon District in Seongnam also rose 1.74% and 1.70%, respectively, showing strength.
Unlike Gyeonggi, Seoul apartment sale prices rose 1.05% this month, with the pace easing slightly from 1.07% in June. Still, prices remained firm mainly in northern Seoul, with Jungnang District and Gangbuk District logging gains in the 2% range. Seongbuk District (1.85%), Nowon District (1.60%), and Gangseo District (1.59%) also outpaced the Seoul average.
Incheon apartment sale prices rose 0.04%, turning upward for the first time in three months.
The upward trend in the jeonse market moderated somewhat nationwide. Nationwide apartment jeonse prices rose 0.53% from a month earlier, with the growth rate 0.05 percentage points lower than June's 0.58%.
Seoul apartment jeonse prices rose 1.34%, with the pace of increase narrowing slightly. Gangdong District posted the highest gain at 2.45%, followed by Seongbuk District (2.37%), Jungnang District (2.25%), Geumcheon District (2.19%), Gangbuk District (2.14%), Nowon District (1.89%), and Gwangjin District (1.68%).
The jeonse price growth rates for apartments in Gyeonggi and Incheon were 0.86% and 0.32%, respectively, slightly lower than in June. However, Dongtan's jeonse prices rose 3.04%, the highest increase in Gyeonggi. In Gwangmyeong (2.71%), Guri (2.33%), and Yeongtong District in Suwon (2.02%), both sale and jeonse prices climbed together, leading to analysis that end users are facing heavier burdens.
The "KB leading apartment 50 index," which tracks price trends for large high-end apartment complexes, also rose for the second straight month. This month's index was 99.2, up 0.38% from the previous month, surpassing June's 0.14% increase. After the clearance of urgent listings that hit the market ahead of the end of the capital gains tax surcharge deferral for multiple-home owners, prices appear to be rising again, centered on major large complexes.
KB Leading Apartment 50 selects the top 50 apartment complexes by market capitalization as of each December and indexes the monthly rate of change in their market capitalization.
However, expectations for future home price increases have weakened somewhat. The nationwide sale price outlook index was 107.8, down 0.2 points from the previous month, and Seoul fell 1.3 points to 124.0. The outlook indexes for Gyeonggi and Incheon also fell 0.8 points and 0.3 points, respectively. As concerns mount over price burdens from short-term surges and the possibility of additional real estate regulations, expectations for further home price gains appear to have weakened.