Seoul apartment prices rose for an 84th consecutive week, closing in on the longest streak on record, as strength in mid- and low-priced districts such as Jungnang, Dobong and Seodaemun offset continued weakness in the three Gangnam districts.
Seoul apartment sale prices rose 0.16% from the previous week as of the 14th, according to the weekly apartment price survey for the second week of September released by the Korea Real Estate Board on the 17th. The pace of gains narrowed by 0.04 percentage point from 0.20% a week earlier. Seoul's weekly increase has slowed for three straight weeks, from 0.29% in the fourth week of August to 0.22% in the final week of August, 0.20% in the first week of September and 0.16% this week.
In the Gangnam area, which had led Seoul's gains, the price correction that began after the announcement of the tax overhaul became more pronounced. Gangnam District fell 0.36%, led by major complexes in Apgujeong and Daechi, while Seocho District dropped 0.26% on declines in Jamwon and Banpo. Songpa District's decline widened to 0.12% this week from 0.02% a week earlier. With all three Gangnam districts falling together, apartment prices across the southeastern region slid 0.16%, extending losses to a third week.
By contrast, the 14 districts north of the Han River rose 0.29% in a week, far outpacing the 0.04% gain in the 11 southern districts. Jungnang District posted the largest increase in Seoul at 0.51%, driven by large complexes in Sinnae and Sangbong. Dobong and Seodaemun districts each rose 0.47%, followed by Seongbuk at 0.43% and Dongdaemun at 0.36%. Rather than spreading from expensive areas across the city, the correction has coincided with a catch-up pattern in which mid- and low-priced districts rise afterward.
Southern Gyeonggi Province also showed strength. Yeongtong District in Suwon accelerated to 0.61% this week from 0.47% a week earlier. Gwonseon District rose 0.42% and Paldal District 0.39%, while Giheung District in Yongin gained 0.42% and Dongtan District in Hwaseong 0.31%. Since Samsung Electronics began offering in-house housing loans, owner-occupier demand has flowed into areas such as Yeongtong and Gwanggyo, and gains centered on Suwon are spreading to neighboring areas.
"As price strength in Seoul's mid-tier districts has persisted, buyers looking for a second option are moving to adjacent outlying areas," said Nam Hyuk-woo of the Woori Bank Real Estate Research Institute. "In particular, districts such as Jungnang and Dobong, where apartments priced under 1 billion won cluster near subway stations, are seeing steady inflows of owner-occupier demand."
A similar pattern emerged in the lease market. Seoul apartment jeonse (a lump-sum deposit lease) prices rose 0.17% this week. The 14 northern districts gained 0.27%, with Nowon District up 0.45%, Jungnang 0.40% and Dongdaemun 0.34%. Seocho District, at minus 0.26%, and Gangnam District, at minus 0.17%, saw jeonse prices fall along with sale prices.
Seoul apartment prices have now risen for 84 consecutive weeks, approaching the longest run on record. The previous record was 85 weeks, from the second week of June 2020 through the third week of January 2022.
