[Seoul=Newsis] Reporter Kim Seon-woong reports that apartment prices in Jamsil, Samsung, Daechi, and Cheongdam (known as Jamsamdaecheong) are rapidly rising following the release of Seoul’s land transaction permit areas. According to a weekly apartment price trend survey by the Korea Real Estate Agency as of February 17, Seoul apartment prices increased by 0.06%, contrasting with the nationwide decline of -0.03%. The de-designated Gangnam district led the rise, with Songpa-gu apartment prices increasing by 0.36%, Gangnam-gu by 0.27%, and Seocho-gu by 0.18%, exceeding the overall Seoul increase by 3 to 6 times.
After returning to an upward trend for the first time in five weeks, Seoul apartment prices have been expanding their growth for a month. Home prices in Gangnam are consistently rising sharply since the land transaction permit area designation was lifted, driving overall Seoul housing prices up. Despite rising offers in the range of hundreds of millions, transactions persist. In Banpo, which previously opened the ’60-billion 84-square-meter era’ nationwide last year, there are now properties listed at 7 billion won, 1 billion higher than before, as preparations are made for generational shifts.
According to the Korea Real Estate Agency’s survey published on February 27, as of February 24, Seoul’s apartment sales prices rose 0.11%, gaining further momentum from the previous week’s 0.06% increase. Over the past four weeks, Seoul’s apartment price change rates expanded from 0.02% on February 3 to 0.11% on February 24.
Nationwide (-0.03% to -0.02%) declines narrowed, and the metropolitan area (-0.01% to 0.01%) turned to increase. However, local areas (-0.04% to -0.05%) saw an expanded decline compared to the prior week.
In Seoul, Songpa-gu (-0.58%) saw significant rises, especially in major complexes of Jamsil and Sincheon-dong. Songpa-gu’s trading price fluctuations surged significantly after the release of restrictions on February 12, from 0.14% on February 10 to 0.58% by February 24. Gangnam-gu (0.38%) and Seocho-gu (0.25%) with relaxed restrictions also showed substantial surges, driving the overall housing price increase in Seoul.
The dedicated 59㎡ space of Lake Palace in Songpa-gu’s Jamsil-dong reached a new record of 2.2 billion won (9th floor) on February 17, up by 185 million won from a prior trade on January 22 (2nd floor for 2.015 billion won). Compared to the previous high-floor transaction (21st floor, 2.03 billion won), it increased by 170 million won. High prices continued in the deregulated areas of Songpa-gu, Jamsil-dong, and Gangnam-gu, with new record highs appearing across Gangnam. In Gaepo-dong, Gangnam-gu, dedicated 34㎡ at DH Firstier I-Park sold for a record 1.43 billion won (15th floor) on February 20.
Continuous high transactions brought offer prices up by hundreds of millions. For instance, the dedicated 84㎡ in Jamsil Els, Jamsil-dong, reached a record 2.84 billion won (20th floor) on February 11, with current offers reaching as high as 3.3 billion won. Recently, in Banpo-dong Ramian One Bailey of Seocho-gu, known for the highest national price of 6 billion won for 84㎡ in August last year, a new listing appeared at 7 billion won.
Conversely, Nowon-gu (-0.03%) and Gangbuk-gu (-0.02%) saw declines mainly in Sanggye, Wolgye-dong, and Beon, Suyu-dong.
An official from the Korean Real Estate Agency stated, “While some areas show a wait-and-see stance due to property overhang, purchase inquiries continue in reconstruction and major sought-after complexes, driving the consistent rise in Seoul overall.”
In Gyeonggi-do (-0.04%), Gwacheon (0.23%) noticed a significant rise mainly in Byeoryang and Burim-dong areas amid ongoing reconstruction projects, maintaining its decline. In Incheon (-0.06% to -0.03%), price drops continued centered around Gyeyang-gu and Yeonsu-gu due to increased unsold properties.
The decline rate maintained in the five major metropolitan cities (-0.06%) and eight provinces (-0.03%), while Sejong saw a narrowing of decline (-0.12% to -0.08%).
National weekly apartment rental prices remained stable (0.00%). In Seoul, the rise expanded (0.02% to 0.03%), while the capital region maintained its increase (0.01%), and local areas leveled off (-0.01% to 0.00%).
Songpa-gu in Seoul (0.12%) experienced rises mainly in major complexes of Sincheon and Garak-dong, with other areas like Dobong-gu, Mapo-gu, Yangcheon-gu, and Yeongdeungpo-gu (0.05%) also seeing increases. In contrast, Dongdaemun-gu (-0.09%) declined primarily around Jeonnong and Janghan-dong, while Jongno-gu and Gwanak-gu (-0.02%) saw reductions around Changsin, Sungin, and Bongcheon-dong.
A representative from the Real Estate Agency mentioned, “Although rental prices dropped in areas influenced by some move-ins and outskirt regions, transaction demands continue in sought-after station areas and large complexes, arranging rent contracts.”