The recent cooling in apartment prices in Seoul’s most expensive districts is being cited by some as a sign the housing market is stabilizing. The data show weakness in high-end areas, but prices and rents in neighborhoods where most buyers can realistically compete are still rising.
According to weekly figures from the Korea Real Estate Board, Seoul apartment prices rose 0.10% in the second week of April, while the so-called Gangnam three districts extended their downturn to an eighth week. Gangnam-gu and Seocho-gu each fell 0.06%, and Songpa-gu slipped 0.01%. Yongsan-gu also turned weaker again.
Outside the premium core, however, midpriced apartments in non-Gangnam areas strengthened. Over the same period, Gangbuk-gu rose 0.27%, Gangseo-gu 0.24%, Dongdaemun-gu and Seongbuk-gu 0.20% each, and Guro-gu 0.17%.
Transaction data point in the same direction. Seoul apartment sales in March totaled 4,742, down 17.7% from the previous month, but the share of deals for apartments priced at 1.5 billion won or less climbed to 85.3%. An analysis also found many of the most-traded complexes were in outlying districts, with 43 of the top 50 located in those areas.
Official transaction prices underscore the pressure on typical buyers. An analysis by the Seoul Metropolitan Government and the Korea Real Estate Board showed Seoul’s apartment sale prices in February rose 1.9% from the previous month and were up 15.7% from a year earlier. The strongest gains were in smaller units: apartments larger than 40 square meters and up to 60 square meters rose 2.95%.
Jeonse deposits also increased. Seoul apartment jeonse transaction prices in February rose 0.22% from the previous month, and the city’s northeastern area climbed 0.85%.
The pattern reflects demand shifting rather than disappearing. As regulations tighten around high-priced homes and investment demand, buyers who cannot access Gangnam look to districts such as Nowon, Guro, Gangseo and Seongbuk.
The interest-rate backdrop has reinforced that shift. The Bank of Korea’s Monetary Policy Board on the 10th kept the benchmark rate at 2.50% a year. With borrowing costs still elevated and lending limits binding, demand tends to concentrate on homes that fit within loan ceilings.
The broader question, the article argues, is which numbers policymakers treat as proof of stability. A pullback in a few symbolic high-end neighborhoods can look like progress, but housing stability for ordinary households depends on whether prices and rents in attainable areas are easing.
Experts have repeatedly said the priority should be expanding private-sector-led supply, not simply focusing on whether Gangnam prices have dipped. The more relevant measure, they say, is who is facing greater strain as midpriced homes and jeonse costs continue to rise.
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.