Seoul apartment prices rose 94 times over the past 100 weeks. After turning upward in the first week of Feb. last year, they climbed for 79 straight weeks, coming within six weeks of the longest streak on record. Recently, Gangnam and Seocho fell, but the relatively less expensive northern districts such as Jungnang and Seongbuk strengthened, supporting the overall rise in Seoul.
An analysis of the weekly apartment sale price index from the Korea Real Estate Board (REB) on the 18th found that from the third week of September 2024 to the second week of Aug. this year, Seoul apartment prices rose from the previous week in 94 of the 100 calendar weeks. There were four flat weeks and two weeks not surveyed due to holidays.
Seoul apartment prices have risen for 79 consecutive weeks since turning upward in the first week of Feb. last year. The Korea Real Estate Board (REB) released on the 13th that in the second week of Aug. (as of the 10th), Seoul apartment sale prices rose 0.21% from the previous week. The increase narrowed by 0.05 percentage points from 0.26% the week before, but the uptrend continued.
Seventy-nine straight weeks of gains is the second-longest streak on record based on the Korea Real Estate Board (REB) weekly statistics. The longest on record is 85 consecutive weeks from the second week of June 2020 to the third week of Jan. 2022. If Seoul apartment prices rise for six more weeks, they will match the longest record, and with seven more weeks, they will set a new record.
Looking only at recent growth rates, the center of gravity in Seoul's home price gains has shifted to the northern districts. In the second week of Aug., apartment prices in the 14 northern districts rose an average 0.29%, more than double the 0.14% gain in the 11 southern districts.
Jungnang District rose 0.46%, the highest increase among Seoul's 25 districts. Seongbuk District climbed 0.43%, Seodaemun District 0.41%, and Jung District and Gangbuk District followed at 0.40% each. As transactions centered on large complexes and areas near subway stations continued, gains stood out in areas with relatively lower price burdens.
Meanwhile, Gangnam District and Seocho District, which had led Seoul apartment price gains, fell 0.02% and 0.04%, respectively. Songpa District rose 0.12%, but the increase narrowed from 0.15% the previous week. This is seen as the result of both owners of high-priced dwellings and buyers taking a wait-and-see approach after the tax overhaul was released, slowing transactions.
Even though the southern districts weakened, overall Seoul apartment prices rose because the northern districts' gains offset them. Analysts note that the upward trend that began in the southern districts and spread along the Han River to Seongdong, Mapo and Gwangjin has recently expanded to Jungnang, Seongbuk and Seodaemun, narrowing regional price gaps in a so-called "leveling" effect.
The jeonse market is also strong. In the second week of Aug., Seoul apartment jeonse prices rose 0.20%, marking 79 straight weeks of increases, the same as sale prices. Although the pace slowed from 0.25% the previous week, some renters could turn to buying if jeonse listings remain scarce, which could support apartment prices, observers say.
Nam Hyeok-u of the Woori Bank Real Estate Research Institute said, "With the impact of the tax overhaul and the announcement of supply measures, core areas of Seoul may take a breather for the time being," adding, "However, if financial support for end users expands while scarce jeonse listings and high jeonse prices are propping up sale prices, buying sentiment could revive in the relatively lower-priced middle-to-lower Seoul areas."