Seoul Apartment Market Booms! Property Prices Surge in 'NoDoGang' Areas

The Seoul apartment market is currently experiencing a surge in activity, with both transaction volumes and prices rising sharply

The Seoul apartment market is currently experiencing a surge in activity, with both transaction volumes and prices rising sharply. The heating up of property prices, which began in Seoul’s Gangnam area, has now spread to the 'NoDoGang' region (Nowon, Dobong, and Gangbuk districts). This post explores the latest trends in Seoul’s apartment market, the changes in 'NoDoGang,' and future outlooks.

The Seoul apartment market has reignited with vigor. In July 2024, apartment transactions in Seoul totaled 7,945, approaching 8,000 transactions. This represents the highest transaction volume in four years since July 2020. The increase in Seoul’s apartment prices has been steep, with some areas experiencing price hikes to the extent where people are saying, “I woke up and the house prices had risen.”

According to a real estate agency in Sangye-dong, Nowon District, "Recent transactions have surged rapidly, and asking prices have increased. The atmosphere has changed dramatically," adding, "There are many inquiries this month as well, making it the most active period in the last 2-3 years."

Despite the government's announcement of housing supply policies, Seoul apartment prices have shown the largest increase in nearly six years, with the surge in house prices continuing unabated. The heat from the price rise in Seoul's Gangnam area has now spread to the 'NoDoGang' region, leading to a notable increase in both transaction volumes and prices.

The rise in apartment prices in the 'NoDoGang' area is particularly striking. For instance, apartment transactions in Nowon District increased by 48.5% to 658 units in July, compared to 443 units the previous month. Similarly, transactions in Dobong District and Gangbuk District rose by 28.9% and 26.4%, respectively.

New record-high transactions are also emerging. For example, the 114㎡ apartment at 'Hanil U&Y' in Sangye-dong, Nowon District, was sold for 1.04 billion won on August 10th, surpassing the previous record of 898 million won set in 2021. In Dobong District, the 121㎡ apartment at 'Changdong Shindobran New 1st Phase' sold for 1.01 billion won on August 12th, setting a new record.

Industry experts note that the persistent market uncertainty regarding housing supply is causing buyers to shift their focus to the outer districts of Seoul and the metropolitan area. Additionally, increased household debt and recent government measures tightening loan regulations are likely to further pressure property prices upward.

The upward trend in Seoul’s apartment market is expected to continue, with particular attention on the 'NoDoGang' area's transaction volumes and price increases. Despite ongoing uncertainties in the real estate market, buyers are actively engaging and expanding their focus to the outer regions and the metropolitan area. It is crucial to closely monitor future developments in Seoul’s apartment market and devise stable investment strategies.