Apartment market booming in the capital region, with signs of recovery in regional areas - South Korea

The apartment market in South Korea is booming, especially in the capital region. In particular, the number of apartment transactions in Seoul has increased sharply, with the actual transaction price index in June recording its largest increase in 16 months.
According to the latest data released by the government agency Korea Real Estate Institute on the 18th, the Seoul apartment real transaction price index rose 1.80% in June compared to the previous month, marking the sixth consecutive month of upward trend since January of this year.
This index is calculated by comparing the price of the house traded in the relevant month with the price of the previous transaction (same housing complex, same type of house) (the survey sample changes every month).
This was the largest increase in one year and four months since February of last year (1.98%). In particular, the apartment real transaction price index in the southeastern Seoul area, which includes Gangnam 3-gu and Gangdong-gu, rose 2.36%, the largest increase.
The Southwest region, which includes Yangcheon, Yeongdeungpo, and Dongjak-gu, came in second with 1.85%, followed by the Northwest region, which includes Mapo, Seodaemun, and Eunpyeong-gu, at 1.69%, and Seongdong, Nowon, Dobong, and Gangbuk-gu.
Prices were rising throughout Seoul, including the northeastern region, which rose 1.35%. The upward trend in Seoul is due to a recent surge in transaction volume, with properties being sold at higher prices than the previous price.
According to Seoul Real Estate Information Plaza, a real estate information portal for Seoul, the number of Seoul apartment transactions (based on the date of contract) in June was 7,479, up 2.
This is the highest number of transactions in three years and six months since December 2020 (7,745 cases). The number of transactions in July was 7,938 as of the 17th, and although the reporting deadline is at the end of this month, it has already exceeded the number of transactions in June.
If this trend continues, the number of apartment transactions in Seoul in July is likely to reach the highest level in four years since July 2020 (11,170 transactions).
Meanwhile, the actual transaction price index for apartments not only in Seoul but also in other regions also increased by 0.07%, turning upward for the first time in three months.
In these regions with many bad properties, actual transaction prices have been falling since October of last year. Although prices temporarily rose in March of this year (0.12%), they have been falling for two consecutive months since April (down 0.44%).
However, by region, Jeju Island's actual transaction price index jumped 3.34%, while Sejong City also rose 1.51%, leading the rise in the index. North Gyeongsang Province (0.93%) and North Chungcheong Province (0.
The index also increased in the following cities: Ulsan (0.38%), South Jeolla Province (0.37%), North Jeolla Province (0.20%), and Busan (0.12%). Gyeonggi Province increased by 0.97%, its sixth consecutive month of growth.
Incheon rose 0.92%, continuing the upward trend for the second consecutive month. As a result, the real transaction price index for apartments in the metropolitan area also jumped 1.26%, the highest increase in a year and three months since March last year (1.57%).
The real transaction price index is expected to continue to rise in July. The Real Estate Institute predicts that the July index will rise by 1.66% in Seoul and 0.54% nationwide.
This is expected to be followed by a 0.05% increase in July, suggesting that prices of regional apartments, which have been underperforming recently, may have bottomed out and the downward trend may be slowing.