▲ An apartment complex view from Lotte Tower in Seoul
The growth rate of housing sales prices in Seoul slowed last month for the first time in five months.
This is interpreted as the result of localized price adjustments, centered around the Gangnam area, following the announcement of a tax reform proposal aimed at increasing the tax burden on owners of high-priced homes and multiple homeowners who do not reside in them.
According to the results of the nationwide housing price trend survey for August released by the Korea Real Estate Board today (the 15th), the sales price of all housing types combined (apartments, row houses, and detached houses) in Seoul rose by an average of 0.97% compared to the previous month.
The monthly growth rate of housing sales in Seoul expanded for four consecutive months from April (0.55%) to July (1.09%), but shrank by 0.12 percentage points in August compared to the previous month.
With a sharp surge in future holding and capital gains taxes expected upon the implementation of the tax reform, Gangnam-gu (-0.18%) shifted to a decline, led by medium-to-large sized units in Apgujeong-dong and areas in Daechi-dong, while Seocho-gu (-0.01%) turned downward, centered around major complexes in Jamwon-dong and Banpo-dong.
On the other hand, mid-to-lower tier regions continued their strong upward trend, including Seongbuk-gu (1.83%), Nowon-gu (1.77%), Seodaemun-gu (1.64%), Jungnang-gu (1.53%), Jung-gu (1.48%), Gwanak-gu (1.15%), Gangseo-gu (1.10%), and Guro-gu (1.07%).
In Gyeonggi Province (0.58%), high growth rates were recorded in Gwangmyeong (2.11%), Bundang-gu in Seongnam (1.92%), and Yeongtong-gu in Suwon (1.80%).
Incheon (-0.03%) turned downward, while the greater Seoul metropolitan area as a whole rose by 0.63%.
In non-metropolitan areas (0.03%), increases were observed in the four major metropolitan cities (0.01%), Jeonnam-Gwangju (0.13%), and seven provinces (0.02%), whereas Sejong fell by 0.07%.
Restricting the scope to apartments, the sales price growth rate in Seoul stood at 1.05%, shrinking by 0.22 percentage points from the previous month.
The metropolitan area rose by 0.76%, non-metropolitan areas by 0.05%, and the national average by 0.39%.
The sales price growth rate for row houses such as villas in Seoul was 0.93%, shrinking by 0.03 percentage points from the previous month, but recorded the second-highest level so far this year.
The Korea Real Estate Board stated, "In the housing sales market, localized listings of downward-adjusted prices led to transactions at lower figures, while high demand continued to drive upward-contract signings centered around large-scale complexes, areas near subway stations, and small-to-medium-sized units."
Nationwide jeonse (lump-sum lease) prices for all housing types rose by 0.35% compared to the previous month.
The expansion in growth narrowed by 0.03 percentage points.
While Seoul (0.83%) saw its upward momentum shrink by 0.2 percentage points, high growth rates were posted in districts such as Nowon-gu (1.58%), Seongbuk-gu (1.38%), Seodaemun-gu (1.16%), Geumcheon-gu (1.15%), Gangbuk-gu (1.13%), and Dobong-gu (1.06%).
In Gyeonggi Province (0.56%), strong trends were seen in Giheung-gu in Yongin (1.74%), Dongtan-gu in Hwaseong (1.55%), and Hanam (1.50%), while Incheon rose by 0.41%.
The metropolitan area as a whole increased by 0.63%.
In non-metropolitan areas (0.09%), rises were recorded in the four major metropolitan cities (0.15%), Sejong (0.22%), and seven provinces (0.07%), while Jeonnam-Gwangju (-0.01%) edged down.
Nationwide apartment jeonse prices increased by 0.44% from the previous month.
Seoul (0.95%) narrowed its growth by 0.33 percentage points, while the metropolitan area and non-metropolitan areas rose by 0.78% and 0.14%, respectively.
The nationwide monthly rent price growth rate recorded 0.35%, matching the figure for jeonse.
Seoul (0.82%) saw its upward expansion shrink by 0.12 percentage points compared to the previous month, but mid-to-lower tier districts maintained a strong trend centered around large complexes, including Seongbuk-gu (1.54%), Nowon-gu (1.49%), Dobong-gu (1.14%), Geumcheon-gu (1.01%), Dongjak-gu (1.01%), and Jungnang-gu (0.92%).
Gyeonggi Province (0.49%) showed high growth rates in places like Giheung-gu in Yongin (1.18%), Gwangmyeong (1.14%), and Yeongtong-gu in Suwon (1.13%), and Incheon rose by 0.38%.
The metropolitan area as a whole climbed by 0.59%.
In non-metropolitan areas (0.13%), monthly rent prices increased across the board in the four major metropolitan cities (0.16%), Sejong (0.16%), Jeonnam-Gwangju (0.10%), and the seven provinces (0.11%).
The apartment monthly rent growth rate in Seoul stood at 0.91%, narrowing by 0.21 percentage points from the previous month, while the metropolitan area and non-metropolitan areas gained 0.68% and 0.18%, respectively.
The national average rose by 0.42%.
Meanwhile, the median housing sales price in Seoul for August reached 805,918,000 KRW, entering the 800 million KRW range.
The median price refers to the middle value when all transactions are lined up in order of price.
The average housing sales price in Seoul was surveyed at 1,029,740,000 KRW, jeonse at 494,427,000 KRW, and the average monthly rent at 1,313,000 KRW.
(Photo: Yonhap News)
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