Seoul Home Prices Pause Ahead of Tax Reform, While Outlying Areas Stay Strong

Apartment prices in Seoul and key areas of Gyeonggi Province slowed somewhat ahead of the government's tax reform. While gains eased in the Gangnam area and southern Gyeonggi Province, some parts of Gangbuk region in Seoul and areas such as Giheung in Yongin still posted strong increases.
According to the Korea Real Estate Board (KREB) on the 30th, apartment sale prices in Seoul rose 0.25% in the fourth week of July, as of the 27th. The increase was down 0.02 percentage points from 0.27% the previous week, but prices have continued to rise for 77 consecutive weeks.
By area, Gangbuk region stood out. Jungnang-gu posted the sharpest rise in Seoul at 0.53%. It was followed by Nowon District at 0.46%, Seongbuk District at 0.39%, Jung-gu at 0.36%, and Geumcheon-gu at 0.35%.
By contrast, the Gangnam area showed relatively modest gains. Gangnam District and Seocho District rose 0.07% and 0.05%, respectively, while Songpa District slowed to 0.20% from 0.29% the previous week.
Nationwide apartment sale prices rose 0.08%, while the Capital Region gained 0.16%. Gyeonggi Province and Incheon increased 0.15% and 0.02%, respectively.
In Gyeonggi Province, Gwangmyeong City and Giheung District in Yongin both rose 0.45%, leading the market. They were followed by Gwonseon District in Suwon at 0.40% and Suji District, Yongin at 0.38%.
Dongtan District in Hwaseong, which has led the gains in southern Gyeonggi Province with a cumulative rise of 15.75% this year, rose 0.15% this week. That was down 0.10 percentage points from 0.25% the previous week. Guri also saw its increase narrow to 0.20% from 0.27% over the same period.
Jungwon District in Seongnam slowed sharply to 0.20% from 0.49% the previous week, while Bundang-gu fell to 0.32% from 0.58%.
Nam Hyuk-woo, a researcher at Woori Bank Real Estate Research Institute, said, "In the southern Gyeonggi residential areas that started with Dongtan, prices are still maintaining double-digit gains, but overall the pace of increase is slowing." He added, "In Giheung District, Yongin, relatively affordable apartments are still concentrated, so end-user demand continues to flow in steadily."
The nationwide apartment jeonse price index rose 0.10%. By region, the increase was 0.17% in the Capital Region, 0.25% in Seoul, 0.14% in Gyeonggi Province, and 0.09% in Incheon.
[email protected] Choi Ga-young Reporter