Apartment prices in Seoul have surged for the 20th consecutive week, experiencing the steepest weekly rise since September 2018—during the administration of former President Moon Jae-in.

According to the Korea Real Estate Board’s weekly apartment price trends for the third week of June (as of June 16), released on June 19, Seoul apartments saw a 0.36% increase compared to the previous week. This is the largest weekly gain since the second week of September 2018 (0.45%).

Seoul’s apartment prices have been rising steadily since February this year, with the pace accelerating week by week. Since May alone, the weekly upticks have grown from 0.08%, to 0.10%, 0.13%, 0.16%, 0.19%, 0.26%, and finally, 0.36%.

By district, the so-called ‘Gangnam 3 districts’ and ‘MAYONGSEONG’—a portmanteau for Mapo, Yongsan, and Seongdong districts—stood out with especially rapid rises. Seongdong soared by 0.76%, the largest weekly gain in 12 years and 2 months since April 2013. Mapo saw a record-high rise of 0.66%, while Yongsan jumped 0.71%, the fastest rate since 2018.

Gangnam and its surrounding districts also showed sharp increases: Gangnam (0.75%), Seocho (0.65%), Songpa (0.70%), and Gangdong (0.69%). The southern region (Dongnam) as a whole marked its biggest increase in seven years and five months since January 2018.

The Korea Real Estate Board commented, “Sales price expectations are rising, especially in popular complexes such as those undergoing reconstruction, and buying inquiries are increasing. The overall upward trend is continuing across Seoul, as more transactions are occurring at higher prices.”

The trend is impacting the broader metropolitan area as well. Bundang district in Seongnam (0.60%) and Gwacheon (0.48%) saw notable climbs, while Gyeonggi province (0.03%) and Incheon (0.01%) also recorded modest increases, putting the overall metropolitan region at a 0.13% gain.

In contrast, provincial regions continued to underperform or decline. This week, regional apartment prices dropped by 0.03%, with the five major metropolitan cities down by 0.04% and the eight provinces falling by 0.02%. Only Sejong City managed a 0.10% gain, though this was a slowdown from last week’s 0.18%.

Nationwide, weekly apartment sale prices rose by 0.05%, widening from the previous week’s 0.03%. In Seoul, apartment lease (jeonse) prices increased 0.07%, a slight slowdown compared to the previous week (0.08%). While Gangdong-gu (0.30%) and Dongjak-gu (0.15%) saw gains, Seongdong-gu shifted to a 0.02% decline, ending its 16-week streak of increases.

Within Gyeonggi province, places like Gwacheon (0.42%), Dongan-gu in Anyang (0.24%), and Bundang in Seongnam (0.22%) moved upward, but others including Gwangmyeong (-0.18%) and Paldal-gu in Suwon (-0.10%) saw declines.

The broader provinces dropped by 0.01%, with the five major metropolitan cities remaining flat (0.00%) and the eight provinces dipping by 0.02%.

Experts attribute the recent rapid rise in home prices to optimism regarding the new government’s real estate policies, anticipated deregulation of reconstruction projects, and a surge in buying sentiment ahead of the stricter three-stage DSR (Debt Service Ratio) regulations set for July.

All eyes are now on whether Seoul’s real estate market will continue its ascent or shift into a period of adjustment.

Note “This article was translated from the original Korean version using AI assistance, and subsequently edited by a native-speaking journalist.”

Photo = Yonhap News, Korea Real Estate Board