Gangnam Holds Breath Ahead of Tax Reform; Seoul Apartment Price Growth Slows for 2nd Week

▲ Apartments

The upward trend in Seoul's apartment prices has slowed for the second consecutive week.

This appears to be the result of a deepening wait-and-see stance in areas with many high-priced homes, such as the Gangnam area and Yongsan-gu, ahead of the government's announcement of tax reform plans.

According to the weekly apartment price trends released by the Korea Real Estate Board today (the 30th), Seoul apartment prices rose 0.25% this week compared to the previous week.

Following a 0.30% increase in the survey on the 13th, the growth rate has narrowed for two consecutive weeks.

In the southeastern region, which includes the four Gangnam districts, the increase in apartment prices dropped from 0.18% last week to 0.13% this week.

The three main Gangnam districts—Seocho-gu (0.05%), Gangnam-gu (0.07%), and Songpa-gu (0.20%)—all saw their growth rates slow compared to the previous week, and their increases were even lower than the Seoul average.

Yongsan-gu, which also has many high-priced homes, saw its upward trend slow from 0.18% last week to 0.13% this week.

In contrast, many areas in Gangbuk, where mid-to-low-priced complexes are concentrated, saw expanded increases.

Jungnang-gu accelerated from 0.40% last week to 0.53% this week, while Nowon-gu increased from 0.43% to 0.46%.

Dobong-gu (0.23%) and Gangbuk-gu (0.33%) also recorded larger increases than the previous week.

Apartment price growth rates in newly regulated areas of the Seoul metropolitan region slowed down.

Hwaseong's Dongtan-gu saw its growth rate decline for two consecutive weeks, dropping from 0.25% last week to 0.15% this week. Yongin's Giheung-gu also decreased from 0.49% to 0.45%, and Guri dropped from 0.27% to 0.20%.

As the upward momentum in the capital area paused, nationwide apartment prices rose by 0.08%, similar to the previous week (0.09%).

The jeonse (lump-sum housing rental) market is also experiencing a slowdown in growth amid the summer vacation season.

Seoul's apartment jeonse prices rose 0.25% this week, marking a narrowing growth rate for three consecutive weeks, while Gyeonggi Province also saw a decrease from 0.17% last week to 0.14% this week.

In Seoul, increases were relatively large in areas experiencing recent shortages of jeonse properties, such as Seongbuk-gu (0.45%), Geumcheon-gu (0.42%), and Nowon-gu (0.40%).

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