Seoul apartment price gains narrowed within a week. Declines steepened in the Gangnam and Seocho districts, while northern districts such as Seongbuk, Jungnang and Nowon, along with relatively lower-priced areas including Gangseo, Gwanak and Guro, still posted strong increases, sharpening the gap between neighborhoods.
Seoul apartment sale prices rose 0.22% from the previous week as of the 31st of last month, according to the weekly apartment price survey for the fifth week of August released by the Korea Real Estate Board on the 3rd. Prices continued to climb, but the pace slowed by 0.07 percentage points from the previous week's 0.29% gain. Apartment prices rose 0.09% nationwide and 0.17% in the greater Seoul area.
The slowdown in Seoul was driven largely by price corrections in the Gangnam area. Gangnam District fell 0.41% in a week, a sharply wider drop than the previous week's 0.11% decline. Seocho District's decline also deepened, to 0.23% from 0.05%. In Songpa District, the gain all but stalled at 0.01% from 0.09%. As a result, apartment prices in the southeastern zone, which includes the Gangnam, Seocho, Songpa and Gangdong districts, swung to a 0.12% drop this week from a 0.03% rise a week earlier.
Northern and outlying districts, by contrast, kept posting relatively strong gains. Seongbuk District rose 0.54%, the largest increase among Seoul's 25 districts, followed by Jungnang at 0.52%, Nowon at 0.50%, Gangbuk at 0.45% and Dongdaemun at 0.42%. Unlike in the Gangnam area, buying interest is spreading to areas dense with small and mid-sized apartments and large complexes. The 14 districts north of the Han River rose an average 0.36%, far outpacing the 0.09% gain in the 11 districts to the south.
Gains were also pronounced in southwestern Seoul, outside the Gangnam area. Gangseo District rose 0.45%, led by small and mid-sized complexes in the Magok and Gayang neighborhoods, while Gwanak rose 0.43%, Guro 0.41% and Geumcheon 0.37%. The Korea Real Estate Board noted, however, that some units in complexes pushing for rebuilding changed hands at reduced prices.
Apartment prices in Gyeonggi Province rose 0.19%, a smaller gain than the previous week's 0.23%. Suwon's Yeongtong District posted a strong 0.65% increase, followed by Seongnam's Jungwon District at 0.54% and Bundang District at 0.53%. Icheon, by contrast, fell 0.15% and Goyang's Ilsandong District fell 0.14%. Incheon rose 0.01%, unchanged from the previous week's pace.
The divide within Seoul also showed up in the lease market. Seoul apartment jeonse (a lump-sum deposit lease) prices rose 0.21%, a slightly smaller gain than the previous week's 0.22%. Seongbuk and Gangbuk districts each rose 0.38% and Nowon and Geumcheon each rose 0.37%, while Gangnam District fell 0.13% and Seocho District fell 0.10%. Songpa District rose 0.28%. Jeonse prices rose 0.10% nationwide and 0.18% in the greater Seoul area.
