The pace of increases in Seoul apartment prices narrowed again after three weeks. Apartments in the Gangnam area have been weak for a second straight month, and gains are also slowing for apartments in lower- to mid-priced neighborhoods outside Gangnam.

According to the weekly apartment price trends for the first week of April (as of the 6th) released by the Korea Real Estate Board on the 9th, Seoul apartment sale prices rose 0.1% from the previous week, a smaller increase than the prior week (0.12%). After expanding for two consecutive weeks, the rate of increase in Seoul apartment prices has shifted back to a slowdown. Nationwide as well, the gain narrowed from 0.05% to 0.04%.

The Board explained, “Amid a mix of areas where transactions have slowed somewhat due to a wait-and-see mood and areas showing upward movement centered on station-area locations, large complexes, and redevelopment candidates, the overall rise in Seoul continued.”

An adjustment trend persisted in the Gangnam area. The three core Gangnam districts (Gangnam, Seocho, and Songpa) have remained weak for seven straight weeks. In Gangnam District, the decline narrowed from -0.22% last week to -0.10% this week, but in Seocho it widened from -0.02% to -0.06%, and Songpa also stayed weak at -0.02%. Even within Gangnam, the pace and direction of adjustment are diverging.

Among the 25 districts of Seoul, only a few, including Seongdong, Yangcheon, Dongjak, and Gangdong, saw a wider increase. Seongdong District, which had fallen for three consecutive weeks, turned to a 0.04% rise this week, whereas Mapo saw its increase slow from 0.10% to 0.08%. Yongsan was flat at 0.00%, halting its upward trend. In some areas, such as Dongjak (0.04%→0.07%) and Yangcheon (0.09%→0.12%), the pace of gains widened.

While the uptrend led by outer Seoul and lower- to mid-priced complexes continued, most week-on-week gains narrowed. Gangseo (0.25%) recorded the highest increase, but the gain shrank by 0.02 percentage point from the previous week. Elsewhere, the increases also narrowed in Seongbuk (0.27%→0.23%), Guro (0.24%→0.23%), and Seodaemun (0.27%→0.22%). Nowon (0.18%), a representative area with active recent trading, saw its growth rate fall by 0.06 percentage point.

Nam Hyuk-woo at Woori Bank Real Estate Research Institute said, “In mid- to lower-tier areas that surged sharply over a short period, it seems some end-user wait-and-see sentiment driven by affordability has been reflected,” and added, “However, transactions relative to listings are comparatively solid, and tenants are continuing to switch to purchases, so the likelihood of a short-term turn to declines is limited.”

The jeonse market also continued to rise. In Seoul, jeonse prices increased by 0.16%, with the pace of gains expanding from the previous week (0.15%), while nationwide the same 0.09% increase as the previous week continued. This appears to reflect continued higher-price transactions centered on school districts and station areas due to a shortage of jeonse listings and increased moving-season demand.