Apartment prices north of Han get hot after mortgage rule chill

Home > Business > Economy

Apartment prices north of Han get hot after mortgage rule chill

Published: 19 Sep. 2025, 13:07 Updated: 19 Sep. 2025, 17:16

Audio report: written by reporters, read by AI

Apartment buildings as seen from Mount Namsan in central Seoul on Sept. 18 [YONHAP]

Seoul’s apartment prices, which had cooled since the government’s mortgage restrictions in June, are climbing once again, led by the northern Han River belt districts of Seongdong, Mapo and Gwangjin.

Despite the government’s housing supply measures announced earlier this month, market jitters have persisted. Buyers are flocking to areas such as Seongdong District, eastern Seoul, and Mapo District, western Seoul, out of concern that they could soon be designated regulated zones.

Apartment prices in Seoul rose 0.12 percent in the third week of September, up from 0.09 percent the previous week, according to data from the Korea Real Estate Board (REB) released Thursday. Prices had been slowing since the loan curbs were implemented on June 27, but began accelerating again last week.

Seongdong District recorded the sharpest increase, with prices jumping from 0.27 percent recorded in the week earlier to 0.41 percent. Mapo rose from 0.17 percent to 0.28 percent, and Gwangjin from 0.20 percent to 0.25 percent.

By comparison, three affluent districts south of the Han River — Gangnam, Seocho and Songpa — rose between 0.17 percent and 0.19 percent. In Gyeonggi, Bundang climbed from 0.28 percent to 0.34 percent, and Gwacheon from 0.16 percent to 0.19 percent.

“With loan rules allowing buyers to borrow only up to 600 million won [$430,500], it’s become harder to enter Gangnam. As a result, demand has grown in alternative areas like Mapo and Seongdong," said Park Won-gap, a real estate analyst at KB Kookmin Bank.

“The government has promised to supply 1.35 million housing units to the greater Seoul area by 2030, but most of those will be on the outskirts and will take time to materialize. Since the measures don’t meet expectations for price stabilization, apartment prices in major Seoul districts are climbing again," Park added.

Some analysts warn that the fear of additional restrictions is actually fueling more buying.

Notices advertising monthly rent for studio apartments is posted near Hankuk University of Foreign Studies in Dongdaemun District, eastern Seoul, on Aug. 26. [YONHAP]

On Sept. 11, President Lee Jae Myung said during a press conference marking his 100th day in office that the government "must constantly control excess demand or speculative demand," signaling that further curbs could follow.

The measures announced on Sept. 7 gave the Minister of Land, Infrastructure and Transport new authority to designate land transaction permit zones and lowered the loan-to-value ratio for regulated areas from 50 percent to 40 percent.

Market observers see the ratio change not as a direct move against Gangnam, where real estate speculation runs high, but as a pre-emptive step for a potential expansion of regulated zones.

The effects are already visible. Seongdong and Mapo have seen a surge in record-high transactions this month.

On Saturday, a 113-square-meter (1,216-square-foot) Mapo Xi apartment in Yeomni-dong sold for 2.65 billion won, the highest price ever for the complex. The next day, an 84-square-meter unit in Seongdong’s Seoul Forest Riverview Xi traded hands for 2.53 billion won, also a record.

“Many buyers are rushing to purchase before more regulations kick in, often using gap investment — buying homes while keeping tenants’ deposits. We’re even getting inquiries from buyers coming in from other provinces,” a realtor in Seongdong said.

Apartment buildings are seen from Mount Namsan in central Seoul on Sept. 7. [YONHAP]

So far this year, Songpa District has posted the highest cumulative apartment price growth in Seoul at 13.03 percent, followed by Gwacheon at 11.93 percent, Seongdong at 10.5 percent, Gangnam at 10.38 percent and Mapo at 8.16 percent, according to the REB.

Still, some analysts believe the government may wait before introducing new restrictions, as the curbs made in June have already sharply reduced transaction volume.

“After the June 27 measures, overall transaction volume in Seoul has dropped significantly," said Ham Young-jin, head of Woori Bank’s real estate research division. "With Seongdong and Mapo not currently classified as regulated zones, designating them 'land transaction permit areas' right away could be politically burdensome.”

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
BY BAEK MIN-JEONG [[email protected]]