Gangnam and Seocho Have Been Falling for Three Weeks, While 'Nodogang' Posts Its Biggest Jump in 14 Years

[Financial News] Seoul apartment prices, which had briefly paused after the government announced its tax reform plan, have started rising sharply again. Higher tax burdens on expensive homes have kept prices in Gangnam on a downward trend for three straight weeks, while buying demand has shifted to Seoul's outer districts and southern Gyeonggi Province, where regulations are lighter and prices are relatively lower, creating a clear "balloon effect."
According to the "Nationwide Weekly Apartment Price Trends for the Fourth Week of August (as of the 24th)," released by the Korea Real Estate Board (KREB) on the 27th, Seoul apartment sale prices rose 0.29%, widening from 0.22% the previous week. That marks the highest weekly gain in six weeks, since the second week of July, when prices rose 0.30%.

This week's rise in Seoul home prices was led by so-called outer districts with a concentration of mid- to low-priced homes. Seven of Seoul's 25 districts posted weekly gains of more than 0.5%.
Jungnang-gu led the city with a 0.56% increase, driven by areas around Sinnae and Sangbong stations. It was followed by Seongbuk District at 0.55%, Gangbuk District at 0.55%, Dobong District at 0.54%, Nowon District at 0.54%, and Seodaemun District at 0.53%. In Seongbuk District, Gangbuk District, and Jongno District, which rose 0.46%, weekly gains were the highest since KREB began compiling the relevant statistics in May 2012, roughly 14 years ago. In the southwest, Gangseo District rose 0.50%, Guro District 0.49%, and Gwanak District 0.46%.
By contrast, high-end apartment clusters hit by the tax reform plan weakened further. Gangnam District fell 0.11%, with declines deepening in areas around Daechi and Apgujeong-dong. Seocho District also dropped 0.05%, led by Jamwon and Banpo-dong, marking three consecutive weeks of negative movement.

The hot streak in Seoul's outskirts spread to Gyeonggi Province. Apartment prices in Gyeonggi Province rose 0.23% this week, sharply widening from 0.15% the previous week. Gains were especially strong in key southern Gyeonggi areas, including Yeongtong-gu, Suwon at 0.75%, Gwangmyeong City at 0.69%, Suji District, Yongin at 0.66%, Giheung District at 0.63%, and Dongtan District, Hwaseong at 0.54%.
Along with the rise in sale prices, the jeonse market has also remained unstable. Weekly apartment jeonse prices in Seoul rose 0.22%, up from 0.19% the previous week. Rental demand has concentrated in areas where sale prices are strong, including Seodaemun District at 0.45%, Geumcheon District at 0.44%, Dobong District at 0.37%, and Nowon District at 0.37%, pushing jeonse prices higher. Jeonse prices in Gyeonggi Province also rose 0.19%.
A KREB official said, "In some high-end complexes, including those in Gangnam, transactions at lower prices are taking place as buyers wait on the sidelines due to tax burdens and as adjustment listings come onto the market." The official added, "Demand for owner-occupied homes and move-up purchases is concentrating in mid- to low-priced complexes in Seoul's outer districts and near subway stations with relatively good transportation access, driving the overall upward trend."
[email protected] Moon Young-jin Reporter