October Data Shows Seoul Housing Market Near Boiling Point—Focus Turns to Government Measures

(Seoul=Yonhap Infomax) Myung Sub Byun =

Seoul home prices surged to a seven-year high in October, with buyer sentiment remaining robust despite new government intervention, according to the latest official data.

The data confirms that demand for residential property in Seoul remains resilient, with little sign of a slowdown even after the government’s sweeping real estate measures announced on October 15. Analysts say the urgency behind the government’s decision to designate broad regulatory zones was justified by the market’s rapid acceleration.

According to the Korea Real Estate Board’s “October Nationwide Housing Price Trend Survey” released on the 17th, the comprehensive housing sales price index for Seoul—which includes apartments, townhouses, and detached homes—rose 1.19% from September. This marks the highest monthly increase since September 2018, when prices climbed 1.25%, and is the sharpest gain in seven years and one month. The October increase also doubled the 0.58% rise recorded in September.

Much of the surge is attributed to a flurry of transactions ahead of the October 15 policy announcement. The Korea Real Estate Board noted that increased inquiries and transactions in preferred complexes with favorable living conditions drove the citywide price gains.

Among Seoul’s districts, Seongdong-gu saw the steepest rise, with prices jumping 3.01% in large complexes in Haengdang-dong and Eungbong-dong. Other areas not previously subject to regulation, such as Mapo-gu (up 2.21%), also posted sharp increases prior to the new measures.

This rapid price escalation has further fueled buyer sentiment. Even after the October 15 policy rollout, surveys indicate that appetite for purchasing apartments in Seoul remains strong, lending support to the government’s view that additional intervention was necessary.

The Ministry of Land, Infrastructure and Transport (MOLIT) noted at the time of the policy announcement that, since late August, price gains in Seoul apartments had accelerated, with the upward trend spreading from districts along the Han River to the entire city. The ministry also expressed concern over rising prices in Gyeonggi Province areas adjacent to Gangnam, such as Bundang in Seongnam, Gwacheon, and Gwangmyeong.

According to the Korea Research Institute for Human Settlements’ “October Real Estate Market Consumer Sentiment Survey,” which polled real estate agencies in Seoul, buyer sentiment strengthened in October compared to September. The share of respondents reporting “more buyers than sellers” increased, while those seeing “more sellers than buyers” declined.

Given that the October survey was conducted from the 21st of the month, it provides insight into market sentiment following the October 15 policy. In October, 7.4% of agencies said there were “far more buyers,” and 24.1% reported “somewhat more buyers,” for a combined 31.5% indicating buyer dominance. In September, these figures were 4.2% and 22.3%, respectively, totaling 26.5%.

Overall, the proportion of agencies reporting more buyers rose by 5.0 percentage points in October versus September, underscoring the intensification of buyer sentiment on the ground.

Some critics argued that if the government had relied solely on September data when designating regulatory zones, certain northern Seoul districts might have been excluded. However, with October data confirming continued price strength, the government’s comprehensive approach appears justified.

Nevertheless, experts caution that it will take time for the effects of the October 15 measures to fully permeate the market. A Korea Research Institute for Human Settlements official said, “As the survey was conducted immediately after the policy’s implementation, it will take time for the results to fully reflect the new measures. Given that agencies typically report a higher proportion of sellers, it will be important to monitor how these trends evolve.”

msbyun@yna.co.kr

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