Seoul's apartment prices continue to rise, but buyer sentiment is weakening. The buyer sentiment index in the Gangnam area stands at 64.4, lower than the Gangbuk area at 79.9, while relatively affordable regions are still experiencing price increases. The divergence between rising prices and declining buyer sentiment highlights a growing disparity in the housing market across different regions.
According to the Korea Real Estate Agency's report on weekly apartment price trends for the fourth week of September, released on October 1, Seoul's apartment prices increased by 0.09% compared to the previous week. Nationwide, prices rose by 0.06%, and in the metropolitan area, they increased by 0.12%. The rate of increase in Seoul has decreased by 0.04 percentage points from the previous week's 0.13%.
KB Real Estate statistics also show an increase in Seoul apartment prices, with a rise of 0.16% during the same period, matching the previous week. In Gyeonggi Province and Incheon, prices rose by 0.16% and 0.03%, respectively, while nationwide, the increase was 0.07%.
Conversely, the sentiment among potential buyers has weakened. The KB Real Estate buyer sentiment index for Seoul fell to 71.7, a decrease of 3.5 points from the previous week, marking a decline for the second consecutive week. A buyer sentiment index above 100 indicates more buyers than sellers, while a figure below 100 suggests the opposite.
There are also regional disparities. The buyer sentiment index for the 14 districts in Gangbuk was 79.9, while the 11 districts in Gangnam recorded a lower index of 64.4, a difference of 15.5 points. Although both regions fell below the baseline of 100, the wait-and-see attitude among buyers is more pronounced in the high-priced Gangnam area.
Gangnam Declines While Outlying Areas Rise… Both Statistics Align
Price trends also reveal differences between Gangnam and Gangbuk. According to the Korea Real Estate Agency, the 14 districts in Gangbuk saw a 0.24% increase over the week, while the 11 districts in Gangnam experienced a 0.04% decline.
In Gangnam, key areas such as Apgujeong and Daechi-dong saw a decrease of 0.56%, while Seocho-gu and Songpa-gu fell by 0.33% and 0.19%, respectively. Yongsan-gu also saw a slight decline of 0.01%. In contrast, districts like Seodaemun-gu rose by 0.41%, while Dongdaemun and Seongbuk districts increased by 0.36% each, and Nowon-gu rose by 0.34%. Although overall prices in Seoul increased, the growth was driven by non-Gangnam areas.
Similar trends were confirmed in KB Real Estate statistics. Gangnam-gu saw a 0.17% drop, marking seven consecutive weeks of decline. Seocho-gu stabilized after a previous week's drop, while Songpa-gu increased by 0.05%. Conversely, Dongdaemun-gu rose by 0.58%, Jungnang-gu by 0.39%, and Nowon-gu by 0.38%, indicating relatively higher increases in Gangbuk.
A KB Real Estate representative noted, "In Gangnam-gu, the increase in properties for sale due to tax burdens has led to a wait-and-see approach among buyers, resulting in price declines for redevelopment projects in Gaepo, Daechi, and Apgujeong-dong. Conversely, in Dongdaemun-gu, demand for apartments priced below 1 billion won continues, leading to price increases in newly built complexes in Imun-dong and near Hwigyeong Station."
Rental Market Favors Gangbuk… Price Trends Diverge from Gangnam
The rental market also shows a stronger upward trend in Gangbuk. According to the Korea Real Estate Agency, Seoul's apartment rental prices rose by 0.16%. The 14 districts in Gangbuk saw a 0.25% increase, while the 11 districts in Gangnam only rose by 0.09%. Seongbuk, Gangbuk, and Nowon districts each increased by 0.36%, while Dobong-gu rose by 0.3%. However, Seocho-gu experienced a decline of 0.23% due to the influx of new rental units.
KB Real Estate also reported a 0.11% increase in rental prices across Seoul, with Gangnam-gu (-0.02%) and Seocho-gu (-0.09%) both declining. In contrast, Gangdong-gu (0.31%), Jongno-gu (0.29%), and Gangbuk-gu (0.24%) saw increases.
Industry experts commented, "Seoul's real estate market is not moving uniformly; rather, while prices and buyer sentiment are weakening in Gangnam, lower-priced areas on the outskirts are experiencing continued increases in both sales and rental prices. Therefore, it is not accurate to conclude that strong buyer sentiment exists across the market simply because the overall price index in Seoul is rising." They further predicted, "The future direction of the housing market will depend on whether weakened buyer sentiment leads to actual price adjustments or if demand continues to concentrate in mid-priced areas in Gangbuk, excluding the three districts in Gangnam."
* This article has been translated by AI.
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