Seoul apartment prices fall for third week in Gangnam, Seocho; 'Semiconductor Belt' sees price surge

Apartment prices in Seoul's affluent Gangnam and Seocho districts have continued their downward trend for the third consecutive week. This slump follows the announcement of tax reforms aimed at increasing the burden on owners of high-priced homes.

While Gangnam and Seocho saw price drops of 0.11% and 0.05% respectively, the overall Seoul market registered a 0.29% increase. This rise was attributed to demand in the city's outer areas, which consistently show upward price momentum. Neighborhoods like Nowon-gu and Dobong-gu saw their price increases widen significantly.

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Some apartments saw a decline due to market observation and the release of adjusted listings, leading to falling transactions, but Seoul as a whole saw an increase as transactions were made for major complexes with good transportation and high preference.

In contrast, the 'semiconductor belt' region in Gyeonggi Province, an area previously experiencing a slowdown, is now seeing a resurgence in apartment price growth. This renewed surge is fueled by expectations of increased liquidity, partly due to potential internal funding from companies like Samsung Electronics. Hwaseong Dongtan, which had seen its price growth moderate for six weeks, jumped 0.54%, and Suwon Yeongtong also saw a substantial rise.

The rental market (Jeonse) also reflected these trends, with Seoul prices rising by 0.29%. Seocho district continued its decline for the second week, while Gangnam saw a rebound into positive territory after two weeks of decreases. Gyeonggi Province's rental market also expanded, with areas like Hwaseong Dongtan and Yongin Giheung leading the gains.

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Due to the strong performance in southern Gyeonggi Province, if demand for upgrading arises, there is a possibility of inflow into the southeastern areas of Seoul.