Seoul Outskirts See 11.15% Price Surge
Apartment prices in ten Seoul districts rose 11.15% year-over-year. This is the highest increase since records began in 2012. President Lee Jae Myung described the trend as leveling. Market data contradicts this view.
Apartment sale prices in ten Seoul districts jumped 11.15% over the past year. This marks the largest annual increase since the Korea Real Estate Board began tracking district-specific data in January 2012. Jeonse deposit prices in these areas also rose by 10.10%. This is the first time both metrics have recorded double-digit growth simultaneously.
The affected districts include Jungnang, Seongbuk, and Gangbuk. These areas contain high concentrations of mid- to low-priced housing complexes. The price growth rate is nearly double that of Gangnam-gu and Seocho-gu. Gangnam-gu prices increased by 6.21% over the same period. Seocho-gu prices increased by 6.61%.
President Calls Trend Price Leveling
President Lee Jae Myung characterized the recent price movements as a leveling process. He stated that prices in the outskirts are rising slightly while Gangnam prices fall. This interpretation suggests a narrowing of regional wealth gaps. The government attributes the shift to loan regulations and tax reforms targeting high-end housing.
Gangnam-gu apartment prices declined by 0.18% last month. Seocho-gu prices dropped by 0.01% in the same period. The administration views this divergence as evidence of policy effectiveness. Critics argue the narrative ignores the financial reality for non-homeowners.
Historical Data Shows Unprecedented Rise
A comparison with the second year of the Moon Jae-in administration reveals a stark difference. From August 2017 to August 2018, sale prices in these ten districts rose by 4.45%. Jeonse prices increased by only 0.92% during that period. The current 11.15% sale price increase is significantly higher. The 10.10% Jeonse increase is the highest on record.
Lee Chang-mu, a professor at Hanyang University, analyzed the regulatory impact. He noted that residency mandates have reduced Jeonse listings. Non-homeowners have been forced to purchase homes instead of renting. This shift has driven up demand for mid- to low-priced apartments. The policy intended to stabilize housing has increased the burden on young buyers.
Buyers Reject Leveling Narrative
Online real estate communities criticized the presidential remarks. Users described the comment as out of touch with the market. One office worker in their 30s noted a 200 to 300 million won increase in prices. They questioned how such a rise could be considered slight. The burden on newlyweds and young professionals has intensified.
The Blue House issued a statement to clarify its position. It confirmed the government takes the increased burden on citizens seriously. Officials cited accumulated supply shortages in northern Seoul as a factor. The administration maintains that the overall trend reflects a correction in the high-end market. Data from chosun.com supports the observation of divergent regional trends.
