Seoul Apartment Prices Hit 86-Week Record

Seoul apartment sales prices rose for the 86th consecutive week. This duration exceeds the 85-week record set during the previous administration. The cumulative price increase since the current government took office is 14.73%. This figure is higher than the 11.68% rise under the Roh Moo-hyun government and the 9.41% rise under the Moon Jae-in government.

Mayor Oh Se-hoon criticized the central government's real estate strategy. He attributed the price surge to aggressive loan regulations and tax policies. These measures, he argued, shifted demand to lower-priced districts rather than stabilizing the market. A political dispute followed between the Seoul city administration and the Democratic Party of Korea.

Price Data Shows Outer District Surge

The Seoul Real Estate Policy Development Center reported a 3.5% average sales price increase from June to August. Specific districts showed sharper gains. Dongdaemun-gu prices rose by 5.8%. Geumcheon-gu prices increased by 5.4%. Dobong-gu, Gangseo-gu, and Gangdong-gu each saw a 4.7% rise. The jeonse market followed a similar pattern with a 3.5% average increase.

Seongbuk-gu jeonse prices climbed by 6.0%. Jungnang-gu prices rose by 5.5%. Nowon-gu and Guro-gu recorded a 5.0% increase. Gangbuk-gu jeonse prices went up by 4.8%. Mayor Oh described this trend as a balloon effect caused by credit restrictions. He stated that suppressed demand in core areas pushed buyers toward the outskirts.

Lawmakers Cite Local Supply Shortfalls

Rep. Park Joo-min rejected the mayor's criticism of federal policy. He noted that the 86-week price streak began in January 2025. This start date precedes the current government's inauguration by more than four months. Park argued that the mayor has been in office for the entire duration of this price rise.

Park pointed to data from the Ministry of Land, Infrastructure and Transport. Housing permits in Seoul fell by 13.9% compared to the 52 months before the mayor took office. Construction starts dropped by 36% over the same period. He challenged the city to explain its five-year housing supply performance. The debate highlights a disconnect between local and federal housing strategies.

Policy Clash Over Market Control

The Seoul Metropolitan Government urges a review of supply, loan, and tax policies. Mayor Oh claims the current approach fails to catch housing prices. He describes the federal stance as blind faith in tax universalism. The Democratic Party insists that local supply deficits are the primary driver of inflation. Both sides agree on the need for more housing but disagree on the source of the failure.

Market analysts note the structural nature of the current price trend. The duration of the rise is the longest in recorded history for Seoul. The rate of increase in the early days of the current administration also exceeds previous benchmarks. The conflict between the city and the party underscores the difficulty of balancing credit controls with housing supply. Source data from GN auto markets/housing: housing prices supports these figures.