Seoul apartment prices accelerated again last week, with Songpa district — one of the capital's three affluent Gangnam districts — posting its first gain in nine weeks.
Seoul apartment sale prices rose an average 0.15% in the third week of April from the previous week, according to weekly apartment price data for the week ended April 20 released by the Korea Real Estate Board on Wednesday. The gain widened by 0.05 percentage points.
Seoul's price trajectory has moved sideways in recent weeks. The citywide gain slowed from early February after the government announced in January its plan to end the suspension of heavier capital gains tax on multi-home owners, falling to 0.05% in the third week of March. It then expanded for two consecutive weeks to 0.12% in the fifth week of March before narrowing to 0.10% in the first week of April. The rate held at 0.10% in the second week before widening again three weeks later. "While some areas showed localized wait-and-see sentiment and others saw demand concentrated on complexes with favorable living conditions, Seoul as a whole moved higher," an official at the Korea Real Estate Board said.
Among the three Gangnam districts, Gangnam (-0.06%) and Seocho (-0.03%) remained weak for a ninth straight week, but Songpa — which had also turned lower — rose 0.07% this week, rebounding after nine weeks. "As heavily discounted listings in popular parts of Songpa were largely absorbed, demand appears to be shifting to relatively cheaper, less-favored areas, and deals have extended into neighboring Gangdong. Improved buyer sentiment seems to have translated into a price recovery," said Nam Hyuk-woo, a real estate researcher at Woori Bank.
Still, some analysts expect Seocho and Gangnam to remain range-bound amid continued price standoffs between buyers and sellers, as political circles keep raising the possibility of reducing the long-term holding special deduction — a factor that could prompt additional distressed listings. In the Han River belt, Yongsan (-0.03%) extended its weakness for a second week, while Seongdong (0.03% to 0.11%), Gwangjin (0.18% to 0.22%), Mapo (0.17% to 0.19%), Yeongdeungpo (0.16% to 0.24%) and Gangdong (0.04% to 0.07%) all posted wider gains.
Middle- and lower-tier districts, including those on the outskirts, continued to rise, led by areas near subway stations and large complexes. Gangseo (0.31%) was driven by Gayang and Yeomchang neighborhoods, while Gwanak (0.28%) saw strong gains in large complexes in Bongcheon and Sillim. Seongbuk (0.27%), Dongdaemun (0.25%) and Gangbuk (0.24%) were also among the biggest gainers. Gyeonggi Province rose 0.07%, matching the previous week, with Dongtan in Hwaseong (0.41%), Gwangmyeong (0.34%), Yeongtong in Suwon (0.31%), Guri (0.29%) and Dongan in Anyang (0.28%) leading the advances.
Seoul apartment jeonse prices rose 0.22%, the biggest gain since the fourth week of December 2019 (0.23%). Seongbuk (0.39%), Songpa (0.39%), Gwangjin (0.35%), Nowon (0.32%), Gangbuk (0.30%) and Dobong (0.26%) led the increases.
