Ahead of the government's tax reform plan announcement, the rise in Seoul apartment prices narrowed for the second straight week. As expectations grow that property taxes and capital gains taxes could increase, high-priced home clusters in areas such as the Gangnam region and Yongsan District turned more wait-and-see, while northern Seoul, which has many mid- to low-priced apartments, saw gains widen.
According to the weekly apartment price trend Korea Real Estate Board (REB) released on the 30th, Seoul apartment sale prices as of the 27th, the fourth week of July, rose 0.25% from the previous week.
Seoul apartment prices have risen for 77 consecutive weeks, but the pace slowed by 0.02 percentage points from 0.27% the previous week. After marking 0.30% in the survey on the 13th, the uptrend has eased for two straight weeks.
In the southeastern zone that includes the four Gangnam districts, the apartment price growth rate fell to 0.13% this week from 0.18% the previous week. Seocho District rose 0.05%, Gangnam District 0.07%, and Songpa District 0.20%, all below the Seoul average increase.
In Songpa District, the gain narrowed to 0.20% from 0.29% the previous week. Yongsan District, which has many high-priced homes, also saw its increase shrink to 0.13% from 0.18% over the same period.
In the Gangnam region, more people are waiting to decide whether to proceed with a transaction after checking the details of the tax reform. With expectations that property and capital gains taxes could rise, both buyers and sellers are delaying transactions, the explanation said.
By contrast, northern Seoul, where there are many mid- to low-priced complexes, strengthened its uptrend. Jungnang District posted the highest rise in Seoul, expanding its gain to 0.53% this week from 0.40% the previous week.
Nowon District also saw its increase widen to 0.46% from 0.43%. Seongbuk District rose 0.39%, Jung District 0.36%, Geumcheon District 0.35%, Gangbuk District 0.33%, and Dobong District 0.23%, respectively.
Apartment prices in the greater Seoul area rose 0.16%. Gyeonggi Province climbed 0.15% and Incheon rose 0.02%.
In Gyeonggi Province, Gwangmyeong City and Giheung District in Yongin each rose 0.45%, leading the uptrend. Gwonseon District in Suwon gained 0.40%, and Suji District in Yongin increased 0.38%.
However, in southern Gyeonggi, where home prices have risen quickly lately, and in some regulated areas, the pace of gains slowed. Dongtan District in Hwaseong, up 15.75% so far this year, saw its weekly growth shrink to 0.15% from 0.25% the previous week.
Guri City narrowed to 0.20% from 0.27%, Jungwon District in Seongnam to 0.20% from 0.49%, and Bundang District to 0.32% from 0.58%. Giheung District in Yongin also saw its increase ease slightly to 0.45% from 0.49% the previous week.
Nationwide apartment sale prices rose 0.08% from the previous week. Compared with the prior week's 0.09% increase, the gain edged down.
The jeonse market also lost steam as the summer vacation season began. Nationwide apartment jeonse prices rose 0.10%, and the greater Seoul area increased 0.17%.
Seoul apartment jeonse prices rose 0.25%, with the increase narrowing for the third straight week. Gyeonggi Province fell to 0.14% this week from 0.17% the previous week, and Incheon rose 0.09%.
In Seoul, Seongbuk District, where jeonse listings remain scarce, rose 0.45%, Geumcheon District 0.42%, and Nowon District 0.40%, posting relatively high gains.