Real estate platform Zigbang analyzes Land Ministry transaction data

Seongbuk-gu, Dongdaemun-gu, Jungnang-gu narrow gap with Seoul median

Gangnam 3 districts widen premium over city-wide average

Apartment complexes in Dapsimni-dong, Dongdaemun-gu, Seoul. [Herald DB]
Apartment complexes in Dapsimni-dong, Dongdaemun-gu, Seoul. [Herald DB]

A "price alignment" trend is deepening in Seoul's mid- to lower-priced districts, with some non-Gangnam areas rising to the level of the city-wide median. Parts of Gyeonggi Province with strong transport links to Seoul — including Gwangmyeong and Yongin's Suji-gu — are also rapidly closing the gap with the capital.

Real estate platform Zigbang compared the median actual transaction price per square meter of exclusive use area for apartments in January and August this year, using Ministry of Land, Infrastructure and Transport data. Seoul's city-wide median stood at 12.68 million won ($9,420) per square meter in January and held at the same level in August. August figures may be revised, however, as the statutory reporting deadline for transactions has not yet passed.

Breaking down results by district, some non-Gangnam areas — including Seongbuk-gu, Dongdaemun-gu and Jungnang-gu — moved closer to the city-wide median. Seongbuk-gu's median rose from 11.46 million won per square meter in January to 12.6 million won in August, lifting its ratio against the Seoul median from 0.90 to 0.99 — meaning prices there went from about 90 percent of the Seoul level in January to nearly 99 percent by August.

Dongdaemun-gu climbed from 12.18 million won to 13 million won over the same period, pushing its ratio from 0.96 to 1.03 and edging above the Seoul city-wide median in August. Gangseo-gu also rose from 12.39 million won to 13.36 million won, with its ratio advancing from 0.98 to 1.05.

Jungnang-gu and Nowon-gu remained below the Seoul median but narrowed the gap. Jungnang-gu's median rose from 9.36 million won to 11.63 million won per square meter, lifting its ratio from 0.74 to 0.92. Nowon-gu climbed from 10.04 million won to 11.17 million won, with its ratio rising from 0.79 to 0.88.

In already high-priced areas, however, the premium over the Seoul median widened further. Gangnam-gu's ratio rose from 2.41 to 2.69, Seocho-gu's from 1.68 to 1.95, and Songpa-gu's from 1.74 to 1.99. Seongdong-gu also climbed from 1.69 to 1.93.

"Two distinct trends are playing out in Seoul simultaneously," said Kim Eun-seon, head of Zigbang's big data lab. "Some non-Gangnam areas that were relatively affordable have narrowed the gap with the city-wide median, while already expensive areas such as the Gangnam 3 districts and Seongdong-gu have seen their premium widen further."

In Gyeonggi Province, Gwangmyeong and Yongin's Suji-gu posted the most notable gains relative to Seoul. Gwangmyeong's median rose from 11.1 million won per square meter in January to 12.97 million won in August, pushing its ratio against the Seoul median from 0.88 to 1.02 and edging above the city-wide figure.

Suji-gu in Yongin also saw its median climb from 9.54 million won to 11.1 million won per square meter, with its ratio against Seoul rising from 0.75 to 0.88 — meaning prices there went from about 75 percent of the Seoul level to 88 percent.

Areas already at or above Seoul levels continued to rise as well. Hanam's median increased from 12.95 million won to 14.48 million won per square meter, lifting its ratio from 1.02 to 1.14. Bundang-gu in Seongnam rose from 20.51 million won to 21.68 million won, with its ratio climbing from 1.62 to 1.71.

Elsewhere in Gyeonggi Province, Dongtan-gu in Hwaseong moved from 0.75 to 0.77 of the Seoul median, Gwonseon-gu in Suwon from 0.50 to 0.55, and Osan from 0.33 to 0.41. While the degree of convergence varied by location, the broader pattern across Gyeonggi Province showed multiple price tiers narrowing the gap with Seoul.

Kim said the market is now showing new signs of change. "The upward momentum that had been led by high-priced Gangnam-area properties is slowing or even reversing," she said. "This reflects a squeeze on purchasing power for expensive homes, as the accumulated burden of price gains has been compounded by interest rate increases, lending restrictions and tax changes."

She added that strength is continuing in relatively affordable areas, and that rising jeonse prices could push more end-users toward buying. "The divergence in trends by region and price tier is likely to deepen further," she said. "How long these currents persist will determine the direction of price gaps going forward."


hwshin@heraldcorp.com