Apartment prices in Seoul's Yongsan district turned higher for the first time in three weeks, while major areas in southern Gyeonggi Province posted weekly gains topping 0.7%. Price increases accelerated in both Seoul and Gyeonggi, steepening the upward trend across the greater Seoul housing market.
Seoul apartment sale prices rose 0.16% from the previous week, according to weekly apartment price data for the second week of October, based on the 12th, released by the Korea Real Estate Board on the 15th. The gain widened by 0.04 percentage points from the prior week's 0.12%, marking an 88th consecutive week of increases and setting a record for the longest run. Gyeonggi Province's gain also expanded to 0.26% from 0.18%, while the increase for the greater Seoul area as a whole quickened to 0.20% from 0.14%.
In Seoul, Yongsan district swung to a gain. Apartment prices there had fallen 0.01% on both Sept. 28 and Oct. 5, but rose 0.03% this week, the first increase in three weeks. Gangnam (-0.35%), Seocho (-0.27%) and Songpa (-0.21%) extended their declines, while prices rose in all of the remaining 22 districts.
Gains were most pronounced in northern Seoul. Jungnang district rose 0.42%, the steepest increase among the city's 25 districts, led by small and mid-sized apartments in Sinnae and Sangbong. Prices in Seongbuk district (0.41%) climbed on large complexes in Donam and Jeongneung, while Seodaemun district (0.40%) was led by Namgajwa and Hongje. Dobong (0.39%) and Nowon (0.37%) also continued to rise.
Increases widened more sharply in southern Gyeonggi. Bundang district in Seongnam led the province's rally, with its gain accelerating to 0.79% this week from 0.56% a week earlier, driven by major complexes in Imae and Seohyeon. Gunpo rose 0.72%, led by large complexes in Sanbon and Geumjeong, widening its gain by 0.45 percentage points from 0.27% the previous week.
Yeongtong district in Suwon accelerated to 0.69% from 0.62%, and Dongtan district in Hwaseong to 0.66% from 0.33%. Strong gains were also recorded in Gwangmyeong (0.62%), Uiwang (0.60%), Byeongjeom district in Hwaseong (0.56%), Dongan district in Anyang (0.53%) and Giheung district in Yongin (0.52%). The strength extended across first-generation new towns including Bundang, Sanbon and Pyeongchon, as well as areas near Samsung Electronics plants.
Samsung Electronics' plan for a special performance bonus has emerged as another variable in the southern Gyeonggi housing market. The company on the 7th announced the criteria for a special bonus funded by 10.5% of operating profit at its semiconductor division. That has raised expectations of additional liquidity flowing into housing markets near its main plants in Suwon and Hwaseong.
Jeonse (lump-sum deposit lease) prices also kept rising. Apartment jeonse prices nationwide rose 0.11%, widening from 0.09% the previous week. Seoul accelerated to 0.18% from 0.16% and Gyeonggi to 0.19% from 0.14%. In Sejong, the jeonse price gain more than doubled to 0.24% from 0.11%.
An official at the Korea Real Estate Board said that while some lower-priced listings came to market and produced declining transactions in Seoul's sale market, prices rose overall in the city, led by sought-after large complexes, small and mid-sized units and areas near subway stations.