Apartment prices in areas such as Mapo and Yangcheon District in Seoul have surpassed their peaks during the booming period of 2020 to 2021. Due to the designation of the land transaction permission area, the entry barrier has increased in the three districts of Gangnam (Gangnam, Seocho, Songpa) and Yongsan, leading to growing demand for purchasing 'a solid property' focused on the outskirts.
According to the Korea Real Estate Board on the 15th, apartment prices in seven districts of Seoul—Gangnam, Seocho, Songpa, Mapo, Yongsan, Seongdong, and Yangcheon—are breaking high prices weekly.
The most recent area to surpass its previous peak among the seven districts is Mapo District. The apartment sales price index for Mapo District in the fourth week of May reached 101.4, exceeding the previous peak of 101.29 from January 2022.
Yangcheon District surpassed its previous peak (100.73 from January 2022) in the second week of May with a score of 100.83.
Apartment prices in the three districts of Gangnam and Seongdong have already recovered their previous peak last summer and continue to rise sharply. Yongsan District also surpassed its previous peak last October.
Regions that quickly recovered their previous peaks are areas where demand for upgrading has concentrated due to the 'solid property' phenomenon.
This phenomenon is spreading throughout Seoul. As of the second week of this month (June 9), Gwangjin District has the highest recovery rate of 99.5% compared to the previous peak. It is followed by ▲Gangdong (99.2%) ▲Yeongdeungpo (98.5%) ▲Dongjak (98.1%) ▲Jongno (94.2%) ▲Dongdaemun (92.7%). However, Gangbuk (86.5%), Nowon (85.7%), and Dobong (82.7%) have recovery rates below 90%.
In Gyeonggi Province, apartment prices in Gwacheon surpassed their previous peak in the fourth week of May. Bundang recorded a recovery rate of 98.8%.
The government is contemplating measures to respond to this housing price surge. On the 12th, the government held a meeting of the 'Real Estate Market Inspection Task Force (TF)' and noted, 'We will review all available policy measures of each ministry to ensure that speculative and market-disturbing behaviors or excess demand caused by psychological anxiety do not hinder market stability' and 'We will make every effort to protect genuine users and ensure housing stability for low-income residents.'