The rise in apartment prices in the three districts of Gangnam and Yongsan, as well as Seongdong, continues, setting new records each week.
On the 6th, looking at the weekly apartment sales price index from the Korea Real Estate Board, the sales price index for Seocho District has reached 115.96 as of the fifth week of March (March 31), based on the sales price in June 2021, which was set as the reference point (100). This marks the highest level since the statistics began to be compiled in 2012, significantly surpassing the peak (106.17) from 2021 to 2022.
Gangnam District (112.43), Songpa District (112.10), Yongsan District (108.18), and Seongdong District (108.78) also set new records in the same statistics. The highest points for each district from 2021 to 2022 were Gangnam District 105.73, Songpa District 105.36, Yongsan District 105.80, and Seongdong District 102.13.
These areas have continued to rise this year, raising the record high every week. Up to the end of March this year, Gangnam District rose by 3.43%, while Seocho District and Songpa District increased by 2.97% and 3.90%, respectively. Yongsan District (1.35%) and Seongdong District (1.60%) also exceeded the average increase rate in Seoul (1.02%).
In particular, although the entire Gangnam, Seocho, and Yongsan districts were designated as land transaction permission areas (land transaction regulations) from the 24th of last month, the rate of increase has only slightly slowed, continuing its upward trend. Songpa District experienced a decline of 0.03% in the fourth week of March, right after the plan to expand land transaction regulations was announced, marking the first decrease in over a year. However, within a week, it quickly reversed back to an increase, setting a new record.
This contrasts with the overall average sales price index in Seoul, which stands at 99.64, still far below the previous peak (104.25) from 2021 to 2022. The market cites the preference for 'a single strong offering' as the main reason, noting that as long as the heavy taxation rates on multiple homeowners are not alleviated, this trend of rising prices is likely to continue. Furthermore, while the reassignment of land transaction regulations may reduce transaction volumes, it is expected to have little impact on sales prices.