All Three Gangnam Districts Decline... Seoul Apartment Price Growth Narrows to 0.20%

[Financial News] Although Seoul apartment prices have risen for 83 consecutive weeks, the pace of the increase slowed as prices in all three Gangnam districts declined. Meanwhile, the Gangbuk region, including Gangbuk-gu, recorded a high growth rate in the 0.4% range, highlighting a distinct regional disparity.
According to the Korea Real Estate Institute on the 10th, apartment sales prices in Seoul rose 0.20% in the first week of September (as of the 7th) compared to the previous week. The upward trend continued for the 83rd consecutive week, but the rate of increase dropped by 0.02 percentage points from the previous week's 0.22%.
It was the weakness in the three Gangnam districts that dragged down the overall increase in Seoul. Gangnam-gu and Seocho-gu fell by 0.35% and 0.30%, respectively, continuing their downward trend for the third consecutive month. Songpa-gu also turned downward this week, dropping 0.02%.
Apartment prices in Songpa-gu have fallen for the first time in 21 weeks since turning to a 0.07% increase in the third week of April. As a result, all three Gangnam districts have recorded negative change rates.
On the other hand, relatively high growth continued in Seoul's mid-range and northern districts. Gangbuk-gu recorded the highest growth rate in Seoul, rising by 0.46%. This was followed by Dobong-gu and Seodaemun-gu, which rose by 0.43% and 0.42%, respectively, and Seongbuk-gu.
Nam Hyuk-woo, a researcher at Woori Bank’s Real Estate Research Institute, analyzed that "the reform of tax benefits centered on actual residence, such as the reduction of the long-term capital gains tax deduction rate and the introduction of a limit on the long-term residence income deduction, acted as a factor increasing selling pressure on owners of high-priced homes."
During the same period, the nationwide apartment sales price index rose by 0.08%. The Seoul metropolitan area increased by 0.16%, while by region, Gyeonggi recorded a 0.17% change and Incheon 0.03%.
In Gyeonggi Province, strength was observed in areas affected by the semiconductor boom, centered on regions with established living infrastructure and good accessibility to Seoul. Suwon Gwonseon-gu recorded the highest increase nationwide at 0.48%, while Suwon Yeongtong-gu and Hanam City rose by 0.47% each, and Seongnam Bundang-gu increased by 0.41%.
Researcher Nam estimated that "the movements of actual buyers with school-age children were reflected in prices, as price increases in the southern Gyeonggi region were relatively slow, and new local apartments could be purchased at the price of older apartments near subway stations in Seoul."
Nationwide apartment Jeonse prices rose by 0.10% over the past week. The Seoul metropolitan area increased by 0.16%, recording growth rates of 0.19% in Seoul, 0.14% in Gyeonggi, and 0.17% in Incheon.

[email protected] Choi Ga-young Reporter