Seoul Apartment Prices Extend Gains for Third Consecutive Week, Driven by 'Han River Belt'

Seongdong, Mapo, Gwangjin, Songpa, Gangdong, and Yongsan Districts Lead the Increase in Price Rises

Prices Rise Across All 25 Districts, with 22 Districts Showing Increased Gains Compared to the Previous Week

Apartment complexes in Seoul viewed from Namsan Mountain [Yonhap News Archive Photo]

Apartment prices in Seoul are on the rise, particularly in the so-called 'Han River Belt,' which includes districts such as Seongdong, Mapo, Gwangjin, Songpa, Gangdong, and Yongsan.

According to the weekly apartment price trend for the fourth week of September (as of the 22nd) released by the Korea Real Estate Board, Seoul's apartment sale price increase rate was 0.19%, a 0.07 percentage point (p) increase compared to the previous week's 0.12%.

Since the beginning of this month, the pace of Seoul apartment price increases has continued to expand for three consecutive weeks (0.08% → 0.09% → 0.12% → 0.19%).

Notably, the Han River Belt region is leading the surge in Seoul apartment prices with an expanding rate of increase.

Among Seoul's 25 districts, Seongdong-gu saw the largest price increase at 0.59%. This was followed by Mapo-gu (0.43%), Gwangjin and Songpa-gu (0.35% each), Gangdong-gu (0.31%), and Yongsan-gu (0.28%).

The rate of increase expanded in 22 out of Seoul's 25 districts compared to the previous week. Gangdong-gu (0.14 → 0.31%), Yongsan-gu (0.12 → 0.28%), Dongjak-gu (0.10 → 0.20%), Eunpyeong-gu (0.00 → 0.09%), Gangbuk-gu (0.01 → 0.03%), and Geumcheon-gu (0.01 → 0.02%) all more than doubled their rate of price increase.

The Korea Real Estate Board explained, "There has been an increase in purchase inquiries focused on preferred complexes such as those undergoing redevelopment, large complexes, and those near subway stations, leading to an increase in sale transactions and an overall rise in apartment prices across Seoul."

There are observations that if the price increase trend continues in preferred areas of Seoul, particularly the Han River Belt, there could be further designations of land transaction permit zones by the Seoul Metropolitan Government or the Ministry of Land, Infrastructure and Transport, or other measures to curb real estate demand.

Earlier, on the 17th, the Seoul Metropolitan Government decided to extend the designation of land transaction permit zones for Gangnam-gu, Seocho-gu, and Songpa-gu, along with Yongsan-gu, until the end of next year. However, additional designations for neighboring preferred areas like Mapo-gu and Seongdong-gu were not discussed as agenda items.

The government has already announced plans to pursue legislative action to expand the authority of the Minister of Land, Infrastructure and Transport to designate land transaction permit zones through its September 7th real estate supply measures.

Given President Lee Jae-myung's emphasis on controlling speculative and excess real estate demand during his 100-day press conference on the 11th, there is considerable interest in when additional regulatory zones might be designated.

The overall apartment price increase in the Seoul Metropolitan Area also grew by 0.03 percentage points from 0.04% to 0.07% compared to the previous week.

During the same period, Incheon maintained its stable prices, while Gyeonggi Province saw its growth rate rise from 0.01% to 0.03%.

The rate of decline in prices for provincial areas remained the same as the previous week (-0.01%).

The nationwide apartment sale price increase rate was 0.03%, with the pace of increase expanding for three consecutive weeks.

Apartment Sale Price Index Change Rate by Province/City for the Fourth Week of September] [Provided by Korea Real Estate Board]

Furthermore, the nationwide apartment jeonse (lump-sum deposit) prices showed a 0.04% increase, a 0.01 percentage point increase from the previous week's 0.03%.

Jeonse price increases in Seoul (0.09%), Gyeonggi (0.05%), and Incheon (0.04%) all expanded compared to the previous week, causing the jeonse price increase rate in the Seoul Metropolitan Area to grow from 0.04% to 0.06% in one week.

During the same period, the jeonse price increase rate in provincial areas expanded from 0.01% to 0.03%. Yonhap News

Apartment Jeonse Price Index Change Rate by Province/City for the Fourth Week of September] [Provided by Korea Real Estate Board]