Seoul Apartment Prices Post 86th Straight Weekly Rise, Breaking All-Time Record

Seoul apartment prices rose for the 86th consecutive week, setting the longest streak of gains on record. According to weekly apartment price statistics released on the 1st, Seoul apartment prices rose 0.09% this week. The upward trend that began last February has continued for nearly a year and a half. The 86-week streak surpasses the previous record of 85 weeks.

In Seoul, Seongbuk District led the rally with gains of nearly 15% this year, while ten districts, including Seodaemun and Gangseo, rose more than 10%. In a housing complex of about 4,500 units in Seongbuk District, an 84-square-meter unit recently traded for 1.05 billion won, nearly 200 million won higher than at the start of the year. Transactions have been centered on smaller units.

However, the pace of gains has slowed since the August 13 policy measures. The Gangnam area, in particular, has turned downward. Apartment prices in Gangnam and Seocho districts have fallen for eight straight weeks, and those in Songpa for four consecutive weeks. Park Mi-so, a licensed real estate agent in Seocho District, Seoul, explained that while there is interest when distressed listings of newly built apartments come on the market, many buyers are still holding back.

When the previous 85-week rally ended four years ago, it was the result of rising benchmark interest rates, tighter lending, and wait-and-see sentiment ahead of a presidential election. This time, the cards of interest rate hikes and lending restrictions have already been played, and there are no elections until after next year.