Seoul apartment prices rise for 75th straight week... Gains slow in Dongtan and Guri

Financial News reported that Seoul apartment prices rose for the 75th consecutive week. Market trends in three Gyeonggi areas newly designated this month as speculative overheating zones, adjustment target areas, and land transaction permit zones were mixed. Apartment price gains slowed in Dongtan District in Hwaseong and in Guri City, while Giheung District in Yongin saw a larger increase.■Seoul holds at 0.30%... Gangbuk leadsAccording to the Korea Real Estate Board (KREB) on the 16th, apartment sale prices nationwide rose 0.11% in the second week of July, unchanged from the previous week. In the capital region, the increase narrowed from 0.22% to 0.21%, and in Gyeonggi Province from 0.23% to 0.21%. Seoul maintained a 0.30% rise, while regional areas rose 0.01%, the same as the previous week.
In Seoul, the 14 districts in Gangbuk widened their gains from 0.33% to 0.35%, while the 11 districts in Gangnam slowed from 0.28% to 0.26%. Although some areas showed a wait-and-see stance among sellers and buyers, transactions at large station-area complexes with good living conditions and redevelopment sites continued to rise.
By district, Seongbuk District posted the largest increase at 0.49%. It was followed by Guro District at 0.44%, Jung-gu at 0.40%, and Gangseo District at 0.38%. Mapo District, Nowon District, and Jungnang-gu each rose 0.37%. In Seongbuk District, prices climbed mainly in large complexes in Jeongneung and Hawolgok-dong, while in Guro District they rose around station areas in Gaebong-dong and Guro-dong. Mapo District widened its gain to 0.37% from 0.19% the previous week. Geumcheon District rose 0.32%, marking its biggest increase in 406 weeks, or about 7 years and 10 months, since the third week of September 2018, when it rose 0.35%.
Nam Hyuk-woo, a researcher at Woori Bank Real Estate Research Institute, explained, "In Seoul's lower- to middle-priced market, real demand remains centered on apartments priced around 600 million won that are eligible for policy-backed loans." He added, "The strength in outer Seoul is also spreading to move-up demand in mid-tier areas such as Seongbuk District."
Preferred areas such as Gangnam and Yongsan also continued to rise. Gangnam District slowed from 0.18% to 0.16%, and Songpa District from 0.34% to 0.32%. Seocho District remained unchanged at a 0.11% increase. By contrast, Yongsan District widened its gain from 0.10% to 0.19%.
■Dongtan and Guri slow, Giheung expandsThe trend in the newly regulated areas was mixed. Apartment price gains in Dongtan District in Hwaseong fell sharply from 1.29% to 0.73%, and Guri City also slowed from 0.64% to 0.31%. By contrast, Giheung District in Yongin edged up from 0.56% to 0.59%.
Elsewhere in Gyeonggi Province, strength and weakness were mixed. Yeongtong-gu in Suwon, a previously strong area, saw its gain narrow from 1.19% to 0.64%, while Gwangmyeong City widened from 0.44% to 0.59%. Icheon City fell more sharply at -0.16%, and Pyeongtaek-si remained weak at -0.01%.
Nam said, "In Dongtan and Yeongtong-gu, Suwon, gains slowed because prices had risen quickly over a short period. But demand is shifting to Giheung District, where relatively cheaper apartments are concentrated, and that is pushing gains higher." He added, "There are some signs of buyers looking for lower-priced listings in nearby non-regulated areas such as Pyeongtaek Jije Station and Hwaseong Byeongjeom, but it remains to be seen whether the spillover effect will continue with the same intensity as before."
Meanwhile, jeonse prices rose 0.11% nationwide, down from 0.12%, while Seoul's increase slowed from 0.31% to 0.28%.
In Seoul's jeonse market, rental demand continued to concentrate in station areas and school districts with good living conditions, leading to higher contract prices. By district, Seongbuk District posted the largest increase at 0.49%, followed by Gangdong District at 0.44%, Songpa District and Nowon District at 0.41% each, and Dobong District and Geumcheon District at 0.40% each. Among them, Gangdong District recorded its biggest rise in 464 weeks, or about 8 years and 11 months, since the fifth week of July 2017, when it rose 0.45%.
The capital region slowed from 0.20% to 0.19%. Incheon narrowed from 0.09% to 0.07%, and Gyeonggi Province from 0.17% to 0.16%.
en1302@fnnews.com Jang In-seo, Choi Ga-young Reporter