Recently in the Seoul metropolitan apartment market, price trends have diverged by area, drawing interest in so-called home price "leveling." As areas that rose first are followed by areas that had relatively lower price burdens, gains are appearing there too, narrowing the price gaps that had opened up between regions.
In Seoul in particular, parts of the non-Gangnam districts such as Seongbuk, Dongdaemun, and Jungnang have moved closer to the citywide price level, while in Gyeonggi, Gwangmyeong and Suji, and in Incheon, Yeonsu, have narrowed the gap with Seoul.
On the 14th, ZIGBANG CO. compared the median actual transaction price per 1 square meter of exclusive area in January and August this year based on the Ministry of Land, Infrastructure and Transport's apartment sales actual transaction prices. Using Seoul's overall price as the baseline, it looked at how each area's price level changed.
The analysis found that the median actual transaction price per 1 square meter of exclusive area for Seoul apartments was 12.68 million won in January this year, and the same 12.68 million won in August. However, August transaction reports are still within the reporting deadline, so the tallied figures may change as additional reports are filed.
In Seoul, prices in some non-Gangnam districts such as Seongbuk, Dongdaemun, and Jungnang have moved closer to the citywide level. In Seongbuk District, the median actual transaction price per square meter rose from 11.46 million won in January to 12.60 million won in August. Compared with Seoul overall, it climbed from 0.9 times to 0.99 times, meaning it went from about 90% of Seoul's price in January to 99% in August.
Dongdaemun District rose from 12.18 million won to 13 million won over the same period. Versus Seoul, it increased from 0.96 times to 1.03 times, slightly exceeding the citywide price in August. Gangseo District also rose from 12.39 million won to 13.36 million won, moving from 0.98 times to 1.05 times of Seoul.
Jungnang District and Nowon District still remain below the Seoul average, but the gap has narrowed. Jungnang's median actual transaction price per square meter rose from 9.36 million won to 11.63 million won, moving from 0.74 times to 0.92 times of Seoul. Nowon also rose from 10.04 million won to 11.17 million won, increasing from 0.79 times to 0.88 times of Seoul.
By contrast, in areas where prices are already high, the gap with Seoul overall widened further. Gangnam District rose from 2.41 times to 2.69 times of Seoul; Seocho District from 1.68 times to 1.95 times; and Songpa District from 1.74 times to 1.99 times. Seongdong District also increased from 1.69 times to 1.93 times.
In Gyeonggi, Gwangmyeong and Suji in Yongin notably narrowed their gaps with Seoul. In Gwangmyeong, the median actual transaction price per 1 square meter of exclusive area rose from 11.10 million won in January to 12.97 million won in August. Over the same period, Seoul stayed at 12.68 million won. As a result, Gwangmyeong climbed from 0.88 times to 1.02 times of Seoul, slightly exceeding the citywide price in August.
Suji in Yongin also saw the median actual transaction price per square meter rise from 9.54 million won to 11.10 million won. Compared with Seoul, it increased from 0.75 times to 0.88 times, meaning prices rose from about 75% of Seoul's level to 88%.
Areas that had already formed prices similar to or higher than Seoul also showed gains. In Hanam, the median actual transaction price per square meter rose from 12.95 million won to 14.48 million won, increasing from 1.02 times to 1.14 times of Seoul. Bundang in Seongnam likewise rose from 20.51 million won to 21.68 million won, moving from 1.62 times to 1.71 times of Seoul.
Elsewhere, Dongtan in Hwaseong rose from 0.75 times to 0.77 times of Seoul, Gwonseon in Suwon from 0.50 times to 0.55 times, and Osan from 0.33 times to 0.41 times. The degree of narrowing varied by area, but across multiple price tiers in Gyeonggi that had been below Seoul, gaps with Seoul have been shrinking.
Gyeonggi did not see every area move closer to Seoul's price so much as show differing movements by area. Places that had been cheaper than Seoul, like Gwangmyeong and Suji, narrowed their gaps, while existing high-priced areas like Hanam and Bundang also remained strong.
In Incheon, changes in Yeonsu District stood out by comparison. The median actual transaction price per 1 square meter of exclusive area in Yeonsu rose from 6.54 million won in January to 7.53 million won in August. Versus Seoul, it increased from 0.52 times to 0.59 times. Yeonsu, which had been about half of Seoul's price, rose to nearly 60%.
In Geomdan District, the median actual transaction price per square meter edged up from 5.92 million won to 6.08 million won, and versus Seoul, from 0.47 times to 0.48 times.
Incheon overall also saw the median actual transaction price per square meter rise from 5.13 million won to 5.23 million won over the same period. The gap with Seoul remains large, but centered on Yeonsu, that gap has shown signs of narrowing.
ZIGBANG CO. said, "The changes seen in this analysis can be viewed not as metropolitan home prices generally converging to a similar level, but as a process in which, as price trends vary by area, their relative positions against Seoul are being readjusted."