Seoul Apartment Prices Jump 15.5%, Sharpest Rise in Four Years
Apartment sale prices in Seoul in August, based on actual transaction prices, rose 15.5% from the same month a year earlier, marking the steepest increase in about four years since November 2021. The Seoul Metropolitan Government announced on the 22nd that prices also climbed 0.72% during the month. Price movements differed by zone. Sale prices in the Northeast zone, comprising Gangbuk, Dobong, Nowon, Seongbuk, Jungnang, Dongdaemun, Seongdong and Gwangjin districts, rose 1.54% from the previous month, the largest gain among the five zones, while the City Center zone covering Jongno, Jung-gu and Yongsan rose 1.06%. By contrast, prices fell 0.29% in the Southeast zone, home to Gangnam, Seocho, Songpa and Gangdong, while the remaining four zones all posted gains.
The upward trend has continued this year as well. Seoul's overall apartment sale prices rose 8.3% from January through August. By zone, the Northeast zone posted the highest cumulative gain at 11.5%, and the Southwest zone, which includes Gangseo, Yangcheon, Yeongdeungpo, Guro, Geumcheon, Dongjak and Gwanak districts, rose 8.4%, outpacing the citywide average. Prices rose across all size categories. Mid-to-large apartments with floor areas of 85 to 135 square meters saw sale prices climb 1.32% from the previous month, the largest increase among the size brackets.
Jeonse, or lump-sum lease, prices for Seoul apartments rose 0.30% in August from the previous month and 11.31% from a year earlier. By zone, jeonse prices in the Southwest zone rose the most, up 1.30% from the previous month, while the Northwest zone, encompassing Eunpyeong, Seodaemun and Mapo districts, gained 0.17%. In contrast, prices fell 0.35% in the City Center zone, 0.10% in the Northeast zone and 0.08% in the Southeast zone. By size, jeonse prices for large apartments over 135 square meters rose 2.41%, and mid-to-large units climbed 1.50%.
Transaction volume declined. As of the 16th, September apartment sales transactions in Seoul stood at 2,923, down 18.3% from the previous month. Given that sales must be reported within 30 days of the contract date, additional transactions may still be counted. Transaction volume has generally hovered at 3,000 to 5,000 per month since May, when it reached 8,987. The share of apartment transactions priced at 1.5 billion won or below rose from 72.3% in May to 79.5% in August before easing to 78.1% in September. The city explained that the share temporarily shrank in April and May due to tax-saving transactions involving high-priced homes, then expanded through August on inflows of demand for mid- and lower-priced units.
Rental transactions also fell. September apartment jeonse transactions in Seoul totaled 6,454, down 17.9% from the previous month's 7,862 and 46.9% from a year earlier. Monthly rent transactions numbered 7,750, down 6.4% from the previous month and 19.8% from the same month last year. Monthly rentals accounted for 54.6% of rental transactions, exceeding half, while jeonse made up 45.4%. Among jeonse contract renewals, the share in which tenants exercised their right to request a contract renewal stood at 52.1%, up 2.3 percentage points from 49.8% the previous month.
