Seoul Apartment Prices Rise for 89th Consecutive Week Amid Diverging Trends

Seoul's apartment prices have risen for the 89th consecutive week. However, the rate of increase has slowed after two weeks of expansion.

According to the Korea Real Estate Agency's report on weekly apartment price trends for the third week of October (as of the 19th), Seoul's apartment sale prices increased by 0.13% compared to the previous week. This marks the 89th consecutive week of price increases. The growth rate had expanded from 0.09% in the fifth week of September to 0.12% in the first week of October and 0.16% in the second week, but has now decreased.

The three districts of Gangnam (Gangnam, Seocho, and Songpa) continued to decline. Gangnam and Seocho saw decreases of 0.31% and 0.32%, respectively, marking their 11th consecutive week of decline. Songpa also fell by 0.13%, continuing its downward trend for the seventh week.

The average increase in the 11 districts south of the Han River was 0.02%, down 0.02 percentage points from the previous week. However, Gangseo and Gwanak districts rose by 0.27% each, while Geumcheon increased by 0.26%, contrasting with the trend in the Gangnam districts. Gangseo's rise was driven by areas near the Deungchon and Gayang subway stations, while Gwanak saw increases around large complexes in Sillim and Bongcheon.

Nam Hyuk-woo, a researcher at Woori Bank's Real Estate Research Institute, noted, "In Gangnam and Songpa, there has been an increase in transactions of urgent sales for some reconstruction apartments that have adjusted prices by over 20%, leading to a depletion of low-priced listings. However, uncertainties in policy and rising interest rates suggest that transaction slowdowns and price weaknesses are likely to continue for the time being."

The Han River belt area has also shown slight fluctuations in weekly prices, remaining stable. Nam added, "These areas have limited borrowing capacity, making it difficult for demand to shift, and they may exhibit similar price weaknesses as the Gangnam districts."

In contrast, the northern districts recorded relatively high increases. The average rise in the 14 districts north of the Han River was 0.26%, surpassing the overall average for Seoul. Seongbuk and Seodaemun led the increase with 0.36% each, while Jung-gu (0.35%), Dobong-gu (0.33%), and Jungnang-gu (0.31%) also showed increases in the 0.3% range. Prices in these areas rose, particularly around subway stations and large complexes, as well as in small to medium-sized apartments. Yongsan also increased by 0.04%, continuing its upward trend for the second week.

The rental market also maintained its upward trajectory. Seoul's apartment rental prices rose by 0.16% compared to the previous week. Notable increases were seen in Seongbuk (0.36%), Dobong (0.28%), Jungnang (0.27%), and Geumcheon (0.27%).

In particular, Gangnam's rental prices rose by 0.12% this week, marking a turnaround after recording no change (0.00%) as of September 28. This is the first time since August 31, when it fell by 0.13%, that the rental rate has returned to positive growth.

The Real Estate Agency stated, "While some areas are seeing transactions at adjusted lower sale prices, prices are rising in large complexes and areas with good living conditions, as well as near subway stations and small to medium-sized apartments, driven by sustained demand for rentals."