Seoul housing market shows decoupling between Gangnam and peripheral districts

One year after the implementation of the ‘10·15 real estate measures’, the Seoul housing market is experiencing a decoupling effect between high-end and mid-to-low-priced areas. While the regulations aimed to curb speculation through tightened mortgage limits and designated regulatory zones, they have shifted demand toward more affordable districts.

According to the Korea Real Estate Board, Seoul apartment sales prices rose by 10.42% in the first week of October compared to the period immediately following the measures last year. However, price increases were unevenly distributed. High-demand areas like Gangnam and Seocho saw modest growth of 1.40% and 3.35% respectively. In contrast, peripheral and mid-to-low-priced districts saw significant surges, with Seongbuk-gu leading at 16.52%, followed by Seodaemun-gu (14.40%) and Gangseo-gu (14.39%).

Experts suggest that tiered mortgage limits—which restrict loan amounts based on property value—have made it difficult for buyers to acquire expensive homes in prime locations, pushing young end-users toward properties under 1 billion won. Additionally, a decrease in rental supply has led to a 13% drop in Jeonse (lump-sum deposit) listings in Seoul, increasing the housing cost burden for residents.