Seoul apartment prices ease as declines widen beyond Gangnam belt
Seoul’s apartment market is broadening its decline beyond the traditionally pricey districts, with the so-called Gangnam belt showing continued weakness. The three wealthier districts known as the Gangnam 3–Gangnam, Seocho and Songpa–along with Yongsan, have posted price falls for the third straight week. Dongjak District, which had not seen a weekly decline for a long stretch, also shifted to a decline for the first time in about 56 weeks, while Yongsan remained in retreat for a third week.
Overall, Seoul apartment prices rose 0.08% in the second week of March, according to the Korea Real Estate Board, extending a longer pattern of slower gains since February. The uptick marked the end of a 57-week run of gains that began after February 2022, but the pace of increases cooled, with the weekly rise down 0.01 percentage point from the prior week, the sixth consecutive weekly slowdown.
The declines in the Gangnam area deepened. Gangnam District posted a 0.13% drop in the latest week, after prior weeks of smaller declines; Songpa District fell 0.17%, Seocho District 0.07%, and Yongsan District 0.03%. Dongjak District, which had a small 0.01% increase the previous week, moved to flat for the week, signaling a possible downward turn in the district’s market.
Not all districts followed the same trend. In the rest of Seoul, a broad set of districts posted gains, including Mapo and Seongdong, where price increases slowed from their earlier pace. The market’s disadvantaged, high-demand areas alongside the Hangang River belt showed mixed signals, suggesting a shift in buyer willingness and in the mix of buyers.
Beyond central Seoul, the market spread to other parts of the city where demand remained more robust. Districts in the mid- to lower-price tier and those with strong school zones posted stronger gains. Notably, central areas such as Jung-gu and Seongbuk-gu led the nationwide rise this week, each climbing about 0.27% from a week earlier. A cluster of districts inland and in western Seoul saw substantial gains as well.
In other parts of the nation, the pattern varied. Gyeonggi Province, which surrounds Seoul, saw a rebound with a 0.10% weekly rise after a brief dip, with some cities like Ansan and Bucheon flipping to gains. Incheon also edged up 0.01% for the week, though several districts within the city were flat or down. The overall 수도권 (the Seoul metropolitan area) rose 0.08% for the week, while non-capital provinces increased only slightly, leaving Sejong’s market down for a second week in a row.
Nationwide, the national apartment price index rose 0.04% week on week, a pace that left the increase unchanged from the previous week. This marked the smallest growth since the fourth week of September, signaling a cooling national trend after a long period of expansion in the housing market. Sejong Province stood out for its two-week decline, underscoring the uneven national picture.
Why this matters for U.S. readers. Seoul’s housing dynamics influence Korea’s consumer confidence, construction activity, and mortgage markets, all of which feed into macroeconomic performance and corporate earnings across Korean industries, including tech and manufacturing with U.S. links. A shift toward fewer price gains in Seoul, and a relocation of demand to mid- and lower-priced districts, can affect real estate investment, housing-related consumer spending, and the broader outlook for Korea’s growth trajectory. As Korea’s government considers tax policy changes aimed at high-value and multi-home owners, the resulting supply adjustments may also influence global real estate platforms, regional supply chains, and international investors with exposure to Korean markets.