Seoul apartment prices rose for an 84th consecutive week as mid- and low-priced areas on the city's outskirts, including Jungnang, Dobong and Seodaemun districts, climbed sharply even as prices fell across Gangnam, Seocho and Songpa. Rather than spreading citywide from high-priced districts, the price correction has been accompanied by a shift of owner-occupier demand toward areas where prices are relatively less burdensome — a catch-up pattern in the market. One more week at the current pace would match the longest run of gains on record.
Seoul apartment sale prices rose 0.16% from the previous week as of the 14th, according to weekly apartment price data for the second week of September released by the Korea Real Estate Board on the 17th. The pace of increase slowed by 0.04 percentage point from 0.20% a week earlier. Weekly gains in Seoul have decelerated 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 the city's price gains, the 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%, centered on Jamwon and Banpo. Songpa District's decline widened to 0.12% from 0.02% the previous week. With all three districts falling together, apartment prices across southeastern Seoul slid 0.16%, extending losses to a third week.
By contrast, the 14 districts north of the Han River rose 0.29% over the week, far outpacing the 0.04% gain in the 11 districts to the south. Jungnang District jumped 0.51%, the biggest increase in the city, driven by large complexes in Sinnae and Sangbong. Dobong and Seodaemun districts followed at 0.47% each, with Seongbuk up 0.43% and Dongdaemun up 0.36%. Instead of spreading across the entire city, the correction that started in high-priced districts has given way to a catch-up pattern in which mid- and low-priced areas rise in turn.
Southern Gyeonggi Province also showed strength. Yeongtong District in Suwon widened its gain 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 (0.42%) and Dongtan District in Hwaseong (0.31%) extended their advances. Since Samsung Electronics began offering in-house housing loans, owner-occupier demand has flowed into areas such as Yeongtong and Gwanggyo, spreading gains centered on Suwon into neighboring areas.
"As price strength in Seoul's mid-tier areas drags on, people buying a home to live in are looking for a second-best option and moving to adjacent outer 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 near subway stations are concentrated, are seeing steady inflows of owner-occupier demand."
A similar trend emerged in the jeonse market. Seoul apartment jeonse (a lump-sum deposit lease) prices rose 0.17% this week. The 14 districts north of the Han River gained 0.27%, with Nowon up 0.45%, Jungnang up 0.40% and Dongdaemun up 0.34%. Seocho District (-0.26%) and Gangnam District (-0.17%), by contrast, saw jeonse prices fall along with sale prices.
With this week's gain, Seoul apartment prices have risen for 84 consecutive weeks, closing in on the longest streak on record. The previous record was 85 weeks, running from the second week of June 2020 through the third week of January 2022.
