Apartment price growth slows in Seoul, Gyeonggi amid regulatory uncertainty

The pace of apartment price increases in Seoul and the surrounding Gyeonggi Province has moderated, reflecting a cautious market sentiment ahead of anticipated regulatory changes. In the third week of July, the weekly apartment price trend showed a narrowing growth margin for both regions.

This cooling trend is largely due to potential buyers and sellers adopting a wait-and-see approach as the government prepares to announce new loan restrictions and tax reform measures. The impact is already visible in parts of Gyeonggi Province, where cities like Dongtan-gu in Hwaseong and Guri, recently designated as regulation zones, experienced a notable reduction in their price increase rates compared to pre-regulation periods.

Data from Korea Real Estate Board revealed that Seoul's apartment sales prices rose by 0.27% in the surveyed week, a decrease from the previous week's 0.3% growth. The traditionally strong Gangnam district saw its growth slow considerably, with Gangnam-gu increasing by only 0.1% and Seocho-gu's growth rate also declining. Songpa-gu also experienced a slowdown. However, some areas like Seongbuk-gu and Nowon-gu in Seoul continued to show robust growth, driven by large complexes and mid-sized units respectively.