Seoul Real Estate Shows Growing Polarization: Decrease in 'Ma-Yong-Seong' vs. Increase in 'No-Do-Gang'

Recent data from Seoul’s real estate market highlights a stark contrast between the 'Ma-Yong-Seong' (Mapo, Yongsan, and Seongdong) and 'No-Do-Gang' (Nowon, Dobong, and Gangbuk) areas, with a noticeable polarization in housing inventory.

Recent data from Seoul’s real estate market highlights a stark contrast between the 'Ma-Yong-Seong' (Mapo, Yongsan, and Seongdong) and 'No-Do-Gang' (Nowon, Dobong, and Gangbuk) areas, with a noticeable polarization in housing inventory. The trend shows a decrease in available properties in some areas while others experience a surge.

According to data from the big data platform Asil on September 4th, the total number of apartment listings in Seoul has decreased over the past three months. As of September 3rd, the number of available apartments in Seoul was recorded at 80,844, which represents a 1.9% decrease from three months prior.

In contrast, the 'No-Do-Gang' region has seen an increase in listings. Specifically, in Dobong District, the number of listings rose from 2,307 to 2,482, an increase of 7.5%. Gangbuk District saw a 6.4% rise, and Nowon District had a 0.8% increase. 

Meanwhile, in the 'Ma-Yong-Seong' areas, there has been a decrease in available properties. Seongdong District saw a 6.7% reduction, with listings falling from 3,162 to 2,953. Yongsan and Mapo districts also experienced declines of 4.9% and 3.3%, respectively.

According to a local real estate agency near the Mapo Raemian Prugio, "There are some rental and leasehold properties available, but properties ready for immediate occupancy are almost all sold out. Recently, there has been a noticeable lack of new listings."

In contrast, the 'No-Do-Gang' area has seen a significant increase in transaction volume. Data from Seoul’s Real Estate Information Plaza indicates that in June, 'No-Do-Gang' accounted for 9.6% of total transactions in Seoul, but this number rose to 12.6% in July.

Some areas in 'No-Do-Gang' are experiencing record-high prices due to increased transactions. For example, the 'Chang-dong Shin-Dobran New 1st Complex' in Dobong District sold an exclusive 121㎡ unit for 1.01 billion won on August 12th, setting a new record. Similarly, the asking price for an exclusive 84㎡ unit in 'Cheong-Gu Apartment' in Nowon District has risen to 1.27 billion to 1.28 billion won, up from 1.1 billion won in April.

The gap between 'Ma-Yong-Seong' and 'No-Do-Gang' is also evident in the rate of gap investments (buying with a leasehold). From January to July this year, 'Ma-Yong-Seong' had 1,458 estimated gap investment cases, accounting for 19.8% of Seoul’s total. In contrast, 'No-Do-Gang' had only 345 cases, representing 4.7% of the total. This indicates a significantly higher rate of gap investments in 'Ma-Yong-Seong' compared to 'No-Do-Gang'.

Hamm Yeong-jin, head of the real estate research lab at Woori Bank, commented, "Three months ago, 'Ma-Yong-Seong' was leading the market along with Gangnam, but recently, the market activity has decreased due to psychological burdens from the heat wave and vacation season." He added, "Market fluctuations may lead to changes in inventory, and the current increase in inventory may be temporary."

The Seoul real estate market is showing increasing polarization, with significant differences between the 'Ma-Yong-Seong' and 'No-Do-Gang' regions in terms of available inventory and transaction activity. This disparity highlights the shifting dynamics within the city's property market, reflecting broader trends in supply and demand.