Seoul’s Apartment Price Growth Slows for Fifth Consecutive Week Amid Tighter Loan Regulations

Impact of 27 June Measures Felt Across Housing Market

The momentum behind rising apartment prices in Seoul has slowed for the fifth consecutive week, following the government’s introduction of new household debt control measures on 27 June. Among the key provisions was a cap of 600 million won on home mortgage loans, which has had a noticeable cooling effect on the real estate market.

According to data released by the Korea Real Estate Board on 31 July, the average sale price of apartments in Seoul rose by 0.12% during the fourth week of July (as of 28 July). While still showing upward movement, the pace has eased from the previous week’s 0.16% increase, marking a 0.04 percentage point decline.

Declining Growth Continues Since Late June

This moderating trend in Seoul’s housing market began in the final week of June, immediately after the 6·27 policy announcement. Since then, the capital has seen five straight weeks of diminishing price growth.

The Korea Real Estate Board noted that while some specific redevelopment complexes experienced price hikes, overall buyer activity remained subdued. “The general demand has weakened due to the cautious sentiment among market participants, leading to a narrower rise in Seoul’s overall apartment prices,” the agency stated.

Price Growth Slows in Key Districts

The three major districts in southern Seoul—Seocho, Gangnam, and Songpa—also recorded slower price increases. Seocho saw its weekly growth rate decline from 0.28% to 0.21%, while Gangnam dropped from 0.14% to 0.11%. Songpa, which had seen a steeper rise the previous week, also experienced a slight slowdown, with prices increasing by 0.41% compared to 0.43% earlier.

Other key southern areas, including Gangdong (from 0.11% to 0.07%), Yangcheon (0.27% to 0.17%), Yeongdeungpo (0.22% to 0.13%), and Dongjak (0.21% to 0.11%) also reported smaller gains.

In northern Seoul, districts such as Yongsan (0.24% to 0.17%) and Seongdong (0.37% to 0.22%) showed notable slowdowns. Mapo District maintained its previous week’s rate of 0.11%. The only district in Seoul where the rate of increase grew was Dobong, rising from 0.02% to 0.04%.

Gyeonggi and Incheon Reflect Similar Trends

In Gyeonggi Province, areas that had previously seen sharp rises also recorded reduced growth. For instance, Gwacheon’s price increase slowed from 0.38% to 0.29%, while Seongnam’s Bundang district saw a drop from 0.35% to 0.25%.

Across the broader Seoul metropolitan area (including Gyeonggi and Incheon), the average increase stood at 0.04%, slightly down from the previous week’s 0.06%. Seoul and Gyeonggi both recorded price increases (the latter by 0.01%), whereas Incheon experienced a 0.03% decline.

Provincial Markets Continue Downward Trend

Outside the capital region, the decline in apartment prices persisted for the 61st consecutive week. Although the rate of decrease slightly eased, prices still fell by 0.02%, compared to a 0.03% drop the previous week. Among the major provincial cities, the five largest metropolitan areas saw an average decline of 0.04%, and the eight provinces (dos) recorded a 0.02% decrease. The city of Sejong, however, bucked the trend with a 0.04% rise.

Rental Market Sees Limited Movement

Rental prices across the country remained largely stable, with a national weekly increase of 0.01%, unchanged from the previous week. In Seoul, jeonse (long-term lease) prices rose by 0.06%, driven by continued shortages of listings in popular areas near public transport and large housing complexes. This mirrored the rate of the prior week.

The Seoul metropolitan area as a whole also saw a slight rise in rental prices, with both Seoul and the broader capital region increasing by 0.06% and 0.01%, respectively. Provincial areas remained flat.