Seoul apartment prices rise for 83 consecutive weeks

Seoul apartment prices have continued their upward trend for 83 consecutive weeks, approaching the record of 85 weeks set during the Moon Jae-in administration. While the high-priced Gangnam 3 districts (Gangnam, Seocho, and Songpa) have recently seen price declines due to tax uncertainties and policy measures, the overall city-wide average remains elevated.

The market is currently characterized by a ‘price matching’ phenomenon, where demand is shifting from expensive Gangnam areas to more affordable non-Gangnam and outlying districts. Areas such as Seongbuk, Guro, Gangseo, and Seodaemun have seen significant growth as buyers seek relatively lower-priced options.

Several factors are influencing this trend, including a shortage of housing supply, rising Jeonse (lump-sum deposit) prices, and high liquidity in the market despite the Bank of Korea's interest rate hikes to 3.00%. Experts note that while interest rates are higher than during the pandemic, increased liquidity from sectors like semiconductors and stock gains continues to support purchasing power in certain segments.