Housing rally in Seoul spreads beyond Gangnam

Apartment prices in Seoul are rising at their fastest pace in nearly seven years, as a rally that began in the capital’s affluent Gangnam districts spreads to neighborhoods along the Han River. The sharpest gains last week came in Mapo and Seongdong districts, where prices jumped nearly 1% in just seven days—marking the steepest weekly increases since data collection began in 2012.

According to figures released June 26 by the Korea Real Estate Board, Seoul’s apartment price index rose 0.43% in the fourth week of June, the biggest weekly gain since September 2018. It was also the 21st consecutive week of increases across the city.

“Buyer interest has been intensifying, especially in complexes slated for redevelopment, pushing up both inquiries and asking prices,” the board said.

Seongdong district led all 25 districts in the city with a 0.99% week-on-week rise, followed closely by Mapo at 0.98%. Both figures surpass price jumps seen even during the market surge under the Moon Jae-in administration. In Seoul’s traditional real estate hotspots, prices also continued to climb: Songpa rose 0.88%, Gangnam 0.84%, and Seocho 0.77%. Other central areas such as Yongsan and Gangdong posted 0.74% increases.

Even outer-ring neighborhoods known collectively as “Nodogang”—short for Nowon, Dobong, and Gangbuk—showed renewed momentum. Prices in Nowon rose 0.12%, marking five consecutive weeks of gains, while Dobong and Gangbuk saw increases of 0.06% and 0.16%, respectively.

Analysts attribute the latest surge in part to a rush of buyers ahead of stricter mortgage lending rules set to take effect in July, when South Korea’s third-phase debt service ratio (DSR) regulation kicks in. The rule will further restrict the ability of borrowers to take on loans, prompting some would-be buyers to act now before credit conditions tighten.

Still, many observers remain skeptical that lending curbs alone will tame Seoul’s market. “Price gains may slow, but the upward trend itself is unlikely to reverse,” said Park Won-gap, chief real estate analyst at KB Kookmin Bank. He pointed to a persistent shortage of new housing supply, combined with expectations for further rate cuts and stimulus measures under the new administration, as likely drivers of continued demand.