The apartment market across Seoul is exhibiting what is known as a "bull market." In 25 districts, the transaction prices have been rising for four consecutive weeks. Aside from the three districts of Gangnam designated as land transaction permission areas and Yongsan, districts such as Seongdong, Mapo, and Dongjak are also experiencing rapid increases.
According to the Korea Real Estate Board on the 13th, the apartment sales prices in Seoul rose by 0.26% compared to the previous week in the second week of this month (as of the 9th). This increase is greater than the previous week's rise of 0.19%.
Looking by district, all 25 districts have been rising for four weeks. Just a month ago, in the second week of May (as of May 12), districts such as Gangbuk (-0.01%), Dobong (-0.02%), and Nowon (-0.01%) were in decline. However, since the following week, all 25 districts have continued to experience upward trends.
The area with the highest weekly increase was Songpa District (0.71%). Following it were Seocho (0.51%), Gangdong (0.50%), and Gangnam (0.45%) districts, which recorded high rises, thus contributing to the overall increase in Seoul. Other notable increases were seen in Seongdong (0.47%), Mapo (0.45%), Yongsan (0.43%), and Dongjak (0.39%) districts.
As apartment prices rise across Seoul, there is a sense of urgency in the city government to come up with countermeasures. Seoul Mayor Oh Se-hoon noted on the 11th that he might use "land transaction permission measures" since he mentioned the price rise in Seongdong and Mapo districts, which are not under those regulations.
However, as can be seen in the statistics from the Korea Real Estate Board, apartment prices continue to rise regardless of whether a district is designated as a land transaction permission area. This is already evident from the high increases in the three districts of Gangnam and Yongsan, which are under such regulations. Analysts suggest that the rising trend in apartment prices in Seoul is driven by prospective buyers considering potential supply shortages and possible policy regulations.
Lee Chang-moo, a professor in urban engineering at Hanyang University, stated, "The phenomenon occurring in the Seoul apartment market now is not a result of any factors associated with the land transaction permission system." He added, "Bundling Seongdong and Mapo districts under that system will not resolve the issue. We need to observe the market conditions a bit longer."