‘Gunpo,’ which sidestepped land transaction permit restrictions, posts the biggest gain nationwide ... Seoul home prices rise for 88 straight weeks

[Financial News] Although apartment prices in the three Gangnam districts (Gangnam, Seocho and Songpa) continued to fall sharply, the overall rate of increase in Seoul widened instead. As gains broadened across most non-Gangnam areas, increases were particularly pronounced in Gyeonggi Province in places such as Gunpo and Byeongjeom, Hwaseong, which are not subject to land transaction permit restrictions.
■ Gains widen outside Gangnam ... Yongsan also rebounds
According to the Korea Real Estate Board on the 15th, Seoul’s apartment sales price index rose 0.16% from the previous week in the second week of October (as of the 12th). Apartment prices in Seoul continued their upward trend for an 88th consecutive week.
In 20 of Seoul’s 25 autonomous districts, the rate of increase widened from the previous week. Jungnang-gu posted the highest increase in Seoul, rising 0.42%, followed by Seongbuk District at 0.41%, Seodaemun-gu at 0.40%, Dobong District at 0.39% and Nowon District at 0.37%.
Yongsan District, after falling 0.01% for two consecutive weeks, rose 0.03% this week, returning to an upward trend. By contrast, Gangnam-gu fell 0.35%, Seocho-gu 0.27% and Songpa-gu 0.21%, as weakness continued in the three Gangnam districts.
Nam Hyuk-woo, a researcher at Woori Bank’s Real Estate Research Institute, said, “Gangnam has declined for 10 consecutive weeks, with signs of a correction concentrated in areas with clusters of high-priced apartments valued at more than 4 billion won.” He added, “Amid demand to move into the three Gangnam districts, listings with adjusted prices are coming onto the market in the Han River Belt, including Yongsan District, and prices are fluctuating from week to week.”
Apartment sales prices rose 0.10% nationwide and 0.20% in the capital region. The increases widened from the previous week by 0.03 and 0.06 percentage points, respectively. Gyeonggi Province and Incheon recorded increases of 0.26% and 0.03%, respectively.
■ Spillover effect of land transaction permit rules ... Home prices strong in southern Gyeonggi
In Gyeonggi Province, strength was notable in areas not subject to land transaction permit restrictions. Gunpo’s increase widened sharply, from 0.27% the previous week to 0.72% this week, while Byeongjeom in Hwaseong rose 0.56%. This is seen as the result of demand concentrating in areas that are not subject to land transaction permit rules requiring owner-occupancy and offer easy access to the semiconductor industry’s sphere of influence in southern Gyeonggi.
The area with the highest increase nationwide was Bundang-gu in Seongnam, up 0.79%. Yeongtong-gu in Suwon rose 0.69%, followed by Dongtan-gu in Hwaseong at 0.66%.
Researcher Nam said, “As the shortage of jeonse and monthly rental listings in Dongtan has persisted, end-user buyers have moved to nearby Byeongjeom to make purchases. Meanwhile, buyers who sold their homes in southern Gyeonggi have moved to preferred areas such as Bundang, Seongnam and Suji in Yongin, keeping prices strong.”
Meanwhile, apartment jeonse prices rose 0.11% nationwide. The increase was 0.18% in both the capital region and Seoul, 0.19% in Gyeonggi Province and 0.14% in Incheon.




[email protected] Choi Ga-young Reporter