Seoul Home Prices Post Record 86-Week Rally but Momentum Fades

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1. Record 86-Week Streak, but Seoul Loses Steam as Gangnam and Yongsan Both Weaken

Key points: Seoul apartment prices rose 0.09% in the fourth week of September, extending gains to an 86th straight week, but the increase shrank to one-third of the 0.29% recorded in the fourth week of August within five weeks. The southeastern zone, which includes the four Gangnam-area districts, widened its decline for a fifth consecutive week to -0.26% this week, with Gangnam District alone shedding more than 2 percentage points over six weeks as weakness deepens. Lower- and mid-priced outer districts such as Seodaemun (0.41%), Dongdaemun and Seongbuk (0.36% each) and Nowon (0.34%) are propping up the overall index, but their momentum is also slowing across the board. Experts say that if rising interest costs, lending curbs and a possible increase in bank loan margins at year-end overlap, the rate of increase in Seoul home prices could fall to around 0.01% by the end of the year or turn negative.

2. LH President: "Mortgages on Homes Under 1.5 Billion Won Should Be Tightened Further"

Key points: Lee Sung-hoon, president of LH, said at a press briefing in Yongin, Gyeonggi Province, on the 30th of last month that the 600 million won mortgage cap on homes priced at 1.5 billion won or less in the Seoul metropolitan area and regulated zones should be reduced further. His reasoning was that a pattern in which buyers competitively borrow 600 million won each under a 70% loan-to-value ratio to buy homes is harmful to the community. He also said corporate in-house lending programs, such as Samsung Electronics' loans of up to 500 million won at 1.5% annual interest, need to be regulated, and said LH would consult with its labor union to bring its own in-house lending in line with government guidelines. The remarks came without consultation with the Financial Services Commission or the Ministry of Economy and Finance, however, and are seen as urging the need for demand management rather than signaling immediate policy adoption.

3. Young Buyers Short on Cash May Find First Homes Even Further Out of Reach

Key points: Concerns have been raised that the LH president's call for additional mortgage restrictions could further narrow opportunities for young adults who lack sufficient funds of their own to buy a first home. According to funding plans obtained by a People Power Party lawmaker's office, loans from financial institutions accounted for 40.1% of the 39.5984 trillion won in Seoul home purchases by buyers in their 30s from February to July this year, far above the shares for those in their 40s (25.1%) and 50s (14.5%). For a first-time purchase of a 1 billion won home in the Seoul metropolitan area or a regulated zone, even applying a 70% loan-to-value ratio leaves borrowing capped at 600 million won under the limit rules, requiring at least 400 million won of the buyer's own funds. Critics say that if further restrictions take effect, young adults could be pushed toward credit loans or non-bank lenders, widening the gap in access to funding.

4. "Fiscal Expansionist" Ha Joon-kyung Moves to the Front, Stressing Execution Over Change

Key points: President Lee Jae-myung promoted Ha Joon-kyung, senior presidential secretary for economic growth, who has provided the theoretical basis for real estate financial regulation and stronger property holding taxes, to policy chief. Kwon Dae-young, vice chairman of the Financial Services Commission, moves to first vice minister of economy and finance, where he will directly oversee real estate and household debt issues. Jeong Eui-kyung, head of the land and urban affairs office at the Ministry of Land, Infrastructure and Transport, was named second vice minister and will work to accelerate three mega-projects and regional infrastructure development. The presidential office presented housing, jobs and financial support for low-income households as the three major social policies of its second term, signaling the possibility of an aggressive policy mix combining property taxation, financial regulation and supply measures. Observers say Ha's appointment will lead to more consistent pursuit of real estate financial regulation and stronger property holding taxes.

5. Yongin Chip Fab Construction Picks Up Pace: "That Mountain Will Be Gone in a Year"

Key points: Site preparation work for the national semiconductor industrial complex in Yongin's Cheoin District, Gyeonggi Province, is gathering speed. To meet Samsung Electronics' requirements, LH will move up completion of the site by more than a year to November next year from the originally planned end of 2028, and will sign a construction contract with the Daewoo Engineering & Construction consortium in the middle of this month before immediately beginning work on the first section (3.45 million square meters, 1.086 trillion won). The roughly 7.78 million square meter site is to house six Samsung Electronics chip plants, materials, parts and equipment companies, and three power facilities. With the project's acceleration becoming visible, observers expect it to expand real estate demand and lift values around Cheoin District in Yongin.

6. Woomi Construction to Launch Pyeongtaek Godeok Woomi Lynn The Premier Presale in Second Half

Key points: A consortium led by Woomi Construction will offer Pyeongtaek Godeok Woomi Lynn The Premier, a complex of eight buildings ranging from two basement levels to a maximum of 23 floors with 623 units of 84 to 111 square meters of exclusive floor area, in Block Abc-33 of the Godeok International New Town district in Pyeongtaek, Gyeonggi Province, in the second half of the year. Adjoining the previously sold Woomi Lynn Prestige, the two complexes will form a branded town of 1,366 units combined. The site is backed by Samsung Electronics' Pyeongtaek campus and sits near administrative, commercial and medical sites, with access to Seoul Metro Line 1 and the Pyeongtaek-Jecheon Expressway. A direct KTX link from Suwon and an extension of the GTX-A line to Pyeongtaek are also being pursued, drawing attention to how asset values may shift as transport networks expand.