More than half of Seoul apartment transactions in the third quarter were struck at or above previous record prices, with high-priced deals spreading from the Gangnam area to northern Seoul and the city's outer districts.
Of 10,930 Seoul apartment sales in the third quarter, 5,977, or 54.7%, were completed at or above prior peak prices, according to an analysis of Ministry of Land, Infrastructure and Transport transaction data released on the 12th by property platform Zigbang. That is 16.5 percentage points higher than in the first quarter, when the figure stood at 38.2%. The share was 43.0% in the second quarter. The study compared this year's prices with the highest transaction price recorded through the end of last year for the same complex and the same floor area.
The increase was fastest outside the Gangnam area. In Dongdaemun District, the share jumped 36.2 percentage points to 81.9% in the third quarter from 45.7% in the first. Over the same period, Seongbuk District rose to 68.5% from 32.1% and Seodaemun District to 73.5% from 44.4%. Jungnang District widened to 41.4% from 13.2%. The share rose in 22 of Seoul's 25 districts.
Deals recovering past highs also increased in outer districts where home prices are relatively low. Eunpyeong District climbed to 50.0% from 26.1%, and Gangbuk District to 34.5% from 8.9%. Nowon District rose to 24.9% from 8.1% and Dobong District to 12.4% from 6.1%.
The Gangnam area moved in the opposite direction. Gangnam District's share of deals at or above prior peaks fell 12.0 percentage points to 43.0% in the third quarter from 55.0% in the first. Seocho District declined to 62.6% from 67.6%, and Yongsan District to 66.9% from 71.3%. While record-high deals spread to the city's outskirts, price momentum weakened in the main high-end housing districts.
In Gyeonggi Province, the share widened to 22.4% in the third quarter from 12.0% in the first. Bundang District in Seongnam reached 94.1%, meaning nearly all comparable deals were done at or above past highs. Sujeong District in Seongnam at 77.2%, Suji District in Yongin at 74.1% and Hanam at 73.6% also posted high shares. By contrast, Uijeongbu stood at 6.4% and Paju at 4.0%.
Incheon's share was 6.5% in the third quarter, below Seoul and Gyeonggi. Outside the capital region, Jeonbuk State was highest at 19.9%, followed by Jeju Special Self-Governing Province at 13.5%, Ulsan at 12.4% and North Gyeongsang Province at 11.5%.
"As lending rules tighten and the burden of raising funds grows, people buying a home to live in are concentrating in areas where prices are more accessible," an official at Zigbang said. "On top of that, rising jeonse (lump-sum deposit lease) and monthly rent prices and concerns about a housing supply shortage are supporting the price recovery in Seoul's outer districts."
The official added that "the burden from the price gains accumulated recently and swings in interest rates are variables that will shape the market going forward," and said that "if a correction in the high-end housing market, including the Gangnam area, drags on, it could also affect buying sentiment in Seoul's outskirts and other parts of the capital region."