Even Apartments Near 1 Billion Won Are in High Demand: A Look at Seoul's Surging Housing Market

Seoul's real estate market continues to heat up, with apartment prices rising for ten consecutive weeks. Despite high prices, 

Seoul's real estate market continues to heat up, with apartment prices rising for ten consecutive weeks. Despite high prices, including some nearing 1 billion won, demand remains strong. This blog post explores the current trends in the Seoul apartment market, factors driving the increase, and the implications for future real estate investments.

Seoul Apartment Prices Surge

In recent weeks, the Seoul apartment market has shown remarkable resilience and growth. According to the latest data, Seoul apartment prices have been increasing for ten consecutive weeks. In the third week of August, prices rose by 0.01%, reflecting a continuing upward trend.

The price hike, initially observed in the affluent Gangnam area, has now spread to non-Gangnam districts. For instance, neighborhoods such as Eunpyeong, Gwanak, Gwangjin, Yangcheon, Dongjak, Songpa, Seongdong, and Guro have all recorded price increases ranging from 0.02% to 0.05%.

Increasing Transaction Volumes

The volume of apartment transactions has also seen a significant rise. In July, Seoul recorded 7,720 transactions, up from 7,470 in June. This is the highest number of transactions since December 2020 and indicates a robust market recovery.

Notably, the outer districts of Seoul, including Nowon, Dobong, and Gangbuk, have experienced the most substantial growth. For example, the number of transactions in Nowon surged by 43.8% compared to the previous month. Similarly, Yangcheon and Yeongdeungpo have also seen notable increases in transaction volumes.

Demand Spreads Beyond Gangnam

As the demand for apartments in the prestigious Gangnam area and the “Mayeongseong” regions (Mapo, Yongsan, and Seongdong) continues, it has begun to extend to semi-prime and peripheral areas. This trend is evidenced by the increased transactions in districts like Yangcheon and Yeongdeungpo, which have seen significant growth.

Impact on Apartment Prices

The persistent increase in transaction volumes and the rapid absorption of discounted properties have contributed to rising apartment prices across Seoul. The Seoul apartment price index, which had been negative until March this year, has seen a rebound, recording increases of 0.13% in April, 0.20% in May, 0.56% in June, and 1.19% in July.

As more buyers compete for limited inventory, especially in areas where prices have previously been lower, it is likely that apartment prices will continue to rise.

Despite the high price points, including those approaching 1 billion won, the demand for Seoul apartments remains strong. The recent surge in transaction volumes and the spread of price increases to previously less sought-after areas highlight a dynamic and evolving real estate market. As buyers adapt to rising prices and shifting trends, the Seoul housing market's momentum is expected to persist, further impacting future real estate investments.

For potential investors and homebuyers, staying informed about these trends is crucial in navigating the competitive Seoul real estate market and making well-timed investment decisions.