High-end apartment prices in Seoul metro area stall while mid-to-low priced units keep climbing

A clear polarization is emerging in the Seoul metropolitan apartment market, with expensive homes losing value while mid-priced and affordable ones rise. On the 22nd, a 59-square-meter (about 20 pyeong) unit in a 2,000-household apartment complex in Gaepo-dong, Seoul, traded 700 million won below its January peak. High-end apartments in Gangnam and Seocho continue on a downward trajectory, weighed down by the combined burdens of taxes, loans, and high prices.

The mood is quite the opposite for mid- and low-priced apartments on Seoul's outskirts. Prices in Seongbuk District have climbed more than 14 percent this year, and those in Nowon District more than 11 percent. Meanwhile, on Friday, a 49-square-meter unit in Gayang-dong, Gangseo District, set a record high, trading at 1.18 billion won. Seoul apartment prices have now risen for 85 consecutive weeks, matching the longest streak on record.

This upward momentum has spread to southern Gyeonggi Province, including Yeongtong in Suwon and Giheung and Suji in Yongin. Weekly gains in Yeongtong exceeded 1 percent, while Giheung and Suji in Yongin also continued to post increases.

Park Won-gap, real estate expert at KB Kookmin Bank, predicted the upswing will continue after Chuseok, driven mainly by mid- and low-priced homes outside Gangnam. He noted that the fall moving season is kicking into full gear amid a prolonged jeonse shortage.