The pace of apartment price gains in Seoul slowed for the first time in four weeks following the reinstatement of heavier capital gains taxes on multi-home owners. While tight supply and rising asking prices persist, buyers have stepped back amid mounting pressure from the rapid run-up in prices. In contrast, Hwaseong's Dongtan district, which offers convenient access to Samsung Electronics and SK hynix facilities, posted its highest weekly gain since being separated into an independent administrative district in February this year.
According to the "Weekly Apartment Price Trends for the Fourth Week of May (as of the 25th)" released by the Korea Real Estate Board on the 28th, the Seoul apartment sales price index rose 0.25% from the previous week. The increase was 0.06 percentage point lower than the prior week's 0.31% gain.
Seoul apartment prices rose 0.15% in the first week of this month, then expanded to 0.28% and 0.31% after the multi-home owner capital gains tax surcharge was reinstated. The pace, however, eased somewhat this week. Gains in the broader Seoul metropolitan area also slowed to 0.13% from 0.17%, while the national figure narrowed to 0.06% from 0.07%. "Localized price increases are occurring mainly in reconstruction project complexes and large-scale developments, but in other areas, transactions have somewhat stalled as both sellers and buyers take a wait-and-see stance," a Korea Real Estate Board official said.
Within Seoul, the northern districts outpaced the southern districts. The 14 districts north of the Han River rose 0.28%. Gangbuk-gu climbed 0.42%, led by major complexes in Mia-dong and Beon-dong, while Jung-gu (0.41%), Gwangjin-gu (0.37%), and Seongbuk-gu (0.37%) also posted relatively large gains. The 11 districts south of the Han River rose 0.22%. Gangseo-gu and Guro-gu each gained 0.32%, while Yeongdeungpo-gu (0.27%) saw prices rise mainly in small- and mid-sized units in Daerim-dong and Yeouido-dong.
The three Gangnam districts maintained their upward trend, but gains narrowed across the board. Seocho-gu eased to 0.20% from 0.26%, while Gangnam-gu slowed to 0.14% from 0.20%. Songpa-gu's gain also moderated to 0.28% from 0.38%.
In the metropolitan area, southern Gyeonggi Province showed notable strength. Gyeonggi apartment prices rose 0.09%, narrowing from the previous week's 0.12%, but Hwaseong's Dongtan district (0.49%), Seongnam's Jungwon-gu (0.41%), and Gwangmyeong (0.30%) recorded high growth rates. Hwaseong's Dongtan district, in particular, marked its highest reading since Hwaseong City was reorganized into a four-district system in February this year, with prices rising mainly in major complexes in Cheonggye-dong and Bansong-dong. Given its proximity to Samsung Electronics (005930.KS) and SK hynix (000660.KS) plants and the availability of shuttle bus service, buying demand from employees who received bonuses worth hundreds of millions of won is seen as having driven the price gains.
The jeonse (a Korean lease system requiring a large lump-sum deposit instead of monthly rent) market also continued its upward trend, though the pace moderated slightly. Seoul apartment jeonse prices rose 0.26%, with the gain narrowing 0.03 percentage point from the previous week's 0.29%. Still, with steady leasing inquiries and pent-up demand concentrated in preferred complexes such as large developments and properties near subway stations, the rate of increase remained high. Seongbuk-gu (0.44%) rose on the back of large complexes in Gileum-dong and Donam-dong, while Seongdong-gu (0.42%), Songpa-gu (0.42%), Dobong-gu (0.41%), and Gwangjin-gu (0.40%) also showed strength.
Market experts believe buyers' wait-and-see stance is likely to continue for the time being. However, some analysts note that if rising jeonse prices coincide with strong price growth in the southern Gyeonggi semiconductor belt, buying demand could be reignited in certain areas. "With elevated asking prices, demand is in wait-and-see mode and listings are scarce, leaving the overall market in a lull," said Nam Hyuk-woo, real estate researcher at Woori Bank. "However, since Gangdong-gu and Songpa-gu are preferred upper-tier districts where semiconductor industry workers can commute, if price strength in the southern Gyeonggi semiconductor belt continues, there is a possibility that move-up demand could flow in."
