The gap between luxury and mid- to low-priced housing has widened across Seoul. Luxury-dominated areas such as Gangnam and Seocho have been characterised by distressed sales, while complexes priced below 1 billion won in areas such as Nowon and Jungnang have recorded repeated increases of more than 100 million won over several months.
The gap between luxury and mid- to low-priced housing in Seoul's apartment market has widened. While transactions involving distressed-sale properties have stood out in luxury areas such as Gangnam and Seocho, complexes priced below 1 billion won in areas such as Nowon and Jungnang have continued to rise by more than 100 million won over two months. Across South Korea, gains in southern areas along the semiconductor belt have also strengthened, with transaction trends diverging by region.
Specifically, transaction examples were reported in several districts of Seoul, with prices rising for properties in Songpa District and Sangbong-dong in the Gangnam area. A 59 sq. m unit in Sinnae-dong traded at 650 million won in September, up 110 million won from July. A 74 sq. m unit in Sangbong-dong rose from 790 million won in July to 827 million won in September. In Nowon District, a 59 sq. m unit in Wolgye-dong traded at 710 million won, also up from the previous year.
Apartment sale prices across Seoul rose 1.13% month on month, while by autonomous district, Nowon District rose 2.32%, Jungnang District 2.20% and Dobong District 1.95%, all remaining at high levels. Gangnam District, meanwhile, fell 0.30%, the only decline recorded in Seoul. Transaction volumes fell sharply from 3,466 in August to 1,387 in September compared with the previous year and month. Applications for land transaction permits also remained low, at 3,547 in August and 3,853 in September.
Transactions in the three Gangnam districts, where luxury apartments are concentrated, contracted substantially from April, and price reductions were also seen in parts of the Gangnam area. The pattern of gains around Suwon spreading to surrounding areas has been noted, while gains in southern Gyeonggi Province have strengthened along the semiconductor cluster. Buyer demand has shifted from properties priced below 1.5 billion won to those priced below 1 billion won, and the view was expressed that this trend may continue.