The upward momentum in Seoul’s apartment sales prices slowed at the end of June, even in the Gangnam area, following the government’s announcement of the third phase of DSR (Debt Service Ratio) regulations.

According to the “Apartment Price Trends for the Fifth Week of June,” released by the Korea Real Estate Board on July 3, apartment prices in Seoul rose by 0.40% from the previous week. This marks the 22nd consecutive weekly increase, but the pace eased slightly from the previous week’s 0.43% gain.

The deceleration was most pronounced in the Gangnam region. Districts such as Gangnam-gu (0.73%), Seocho-gu (0.65%), and Songpa-gu (0.75%) all saw their rate of growth shrink compared to the prior week, whereas Yangcheon-gu and Yeongdeungpo-gu continued to post significant gains.

Yangcheon-gu registered a 0.60% increase—the largest in five years and seven months—while Yeongdeungpo-gu climbed by 0.66%, its highest rise since the Korea Real Estate Board began tracking the area in January 2013.

In Gyeonggi Province, price growth accelerated thanks to surges in Gwacheon (0.98%) and Bundang-gu, Seongnam (1.17%). However, Incheon again recorded a decline.

Across regional markets, the downtrend persisted. The five major metropolitan cities and eight provinces saw apartment prices fall by 0.04% and 0.01%, respectively. Sejong City, which experienced a surge around the presidential election, recorded just a 0.02% increase.

Meanwhile, the growth in Seoul’s apartment jeonse (long-term lease) prices also lost steam, rising by only 0.07%. In contrast, jeonse prices in the greater capital region continued to climb, while those in regional areas remained on a downward trajectory.

The Korea Real Estate Board explained, “While prices are still rising in redevelopment zones and major complexes, a decline in demand in favored locations has led to a modest slowdown in price growth across Seoul as a whole.”

This market shift is attributed to cautious sentiment triggered by the government’s tightened lending regulations starting in July. Attention is now focused on whether this more restrained trend will continue in the coming weeks.

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

Photo=Korea Real Estate Board