Gangnam Area Sees Surge in Jeonse Prices as Demand Shifts South

The jeonse market for apartments in Seoul is shifting from the northern to the southern regions, particularly in Gangnam. Gangdong District has seen a weekly increase of over 1%, leading the rise in jeonse prices across the city, while Songpa District continues to show strength. In Gyeonggi Province, the cities of Gwangmyeong and Dongtan in Hwaseong are also experiencing significant increases in jeonse prices, indicating a broader upward trend centered in the southern areas.
 
According to KB Real Estate's weekly apartment market report, jeonse prices in Seoul rose by 0.33% in the last week of June, slightly up from the previous week's increase of 0.32%.
 
A notable change is the shift in regional trends. The increase in jeonse prices in the Gangnam area reached 0.37%, surpassing the 0.29% increase in the northern regions. Just a week earlier, the northern area had a stronger increase of 0.39% compared to Gangnam's 0.27%, but the situation has reversed within a week.
 
Gangdong District is at the forefront of this surge, with jeonse prices rising by 1.16% this week, the highest among Seoul's 25 districts. This figure is more than three times the average increase in the city (0.33%). Songpa District also saw a 0.45% increase, while other districts such as Gwanak (0.44%), Guro (0.31%), and Dongjak (0.30%) also reported upward trends.
 
KB Real Estate attributes the rise in Gangdong District to a combination of reconstruction-related demand and increased interest in school districts as summer vacation approaches, leading to a surge in demand for jeonse properties. The influx of both relocation and educational demand is rapidly influencing the jeonse market in the area.
 
 
Recently, a clear upward trend in jeonse prices has also emerged in major areas of Gyeonggi Province that share living spaces with southern Seoul.
 
Gwangmyeong City recorded a 0.96% increase in jeonse prices, the highest among major areas in the metropolitan region. During the same period, the sale prices also rose by 0.95%, indicating a simultaneous increase in both markets.
 
Gwangmyeong is a representative alternative residential area adjacent to the Guro and Geumcheon districts of Seoul. With active redevelopment projects and excellent accessibility to Seoul, it continues to attract actual residence demand. As housing prices in Seoul rise and regulations tighten, demand is shifting to Gwangmyeong, contributing to strong performance in both the sale and jeonse markets.
 
Dongtan in Hwaseong is showing a similar trend. Jeonse prices in Dongtan rose by 0.96% this week, while sale prices surged by 2.27%, marking one of the highest increases in the country.
 
Dongtan has been experiencing rapid price growth due to expectations of increased investment in the semiconductor industry, corporate relocations, and demand for proximity to workplaces. Although buyer sentiment has become cautious following the designation of regulatory areas and land transaction permission zones, actual residence demand remains robust. Some of the demand that previously flowed into the sale market is now staying in the jeonse market, continuing to exert upward pressure on prices.
 
Similar trends are observed in other regions of Gyeonggi Province. Guri City saw a 0.49% increase in jeonse prices, while Seongnam's Bundang District rose by 0.37%, Yangju by 0.37%, Suwon's Paldal District by 0.36%, and Suwon's Yeongtong District by 0.35%. The common factor is that jeonse prices are rising in areas with good accessibility to Seoul or strong self-sufficient functions.
 
 
Conversely, while the northern regions of Seoul continue to see overall price increases, they lack the momentum seen in Gangnam. Areas such as Gangbuk (0.21%), Seongbuk (0.43%), Eunpyeong (0.38%), Dobong (0.40%), and Dongdaemun (0.34%) have all reported increases, but the overall rate in these regions remains lower than that of Gangnam.
 
Market analysts suggest that multiple factors are simultaneously influencing the shift of the jeonse market's center of gravity to the southern regions. The combination of relocation demand from Gangdong District, school district interest, alternative housing demand due to regulations in Seoul, and actual residence demand driven by industrial and transportation developments in southern Gyeonggi are stimulating the jeonse market in Gangnam and adjacent areas.
 
Experts indicate that future changes in the supply of new apartments in Seoul, trends in jeonse listings, and schedules for reconstruction relocations could be key variables influencing the direction of the jeonse market.
 
An industry insider commented, “The simultaneous strength of both the sale and jeonse markets in southern Gyeonggi is significant. Gwangmyeong and Dongtan have both seen substantial increases in sale and jeonse prices, and the jeonse market in Gangnam is also expanding again. This trend shows that demand for actual residence, rather than mere investment, is supporting the market, leading to simultaneous movements in both jeonse and sale prices.”