Seoul Apartment Median Price Also Surpasses 800 Million Won, Korea Appraisal Board Reports

January Seoul Apartment Median Price 839.2 Million KRW
Government's 'High-Price Housing' Standard Controversy Likely to Grow
However, Price Increase Has Narrowed This Year, Showing 'Stability'

(Photo by Yonhap News)

[Asia Economy Reporter Moon Jae-won] The median price of apartments in Seoul, as compiled by the Korea Appraisal Board, surged by more than 40 million won in one month, surpassing 800 million won. Although this figure is over 70 million won lower than the results from the private institution KB Kookmin Bank, the rapid increase in the median price of Seoul apartments, as shown by a public institution under the Ministry of Land, Infrastructure and Transport, is expected to intensify the controversy surrounding the government's current 900 million won threshold for 'high-priced housing.'

According to the Korea Appraisal Board's "January Nationwide Housing Price Trends" data released on the 3rd, the median price of apartments in Seoul last month was recorded at 839.2 million won. This is the first time since the Korea Appraisal Board began compiling this statistic in 2012 that the median price of Seoul apartments has exceeded 800 million won. The median price refers to the middle value when housing sale prices are arranged in order.

When the Moon Jae-in administration took office in May 2017, the median price was 529.96 million won. It surpassed 600 million won in December of the same year and 700 million won in January last year. Although there were fluctuations throughout the past year, the median price jumped by more than 40 million won compared to December last year (797.57 million won), driven by a sharp rise in prices of low- to mid-priced apartments due to the December 16 real estate measures.

Previously, a survey by the private institution KB Kookmin Bank's Liv-On showed that the median price of Seoul apartments last month was 912.16 million won. Since the Korea Appraisal Board and KB Kookmin Bank use different samples and methods, there is a difference of about 70 million won, but the rapid upward trend is consistent.

Therefore, discussions around the 900 million won threshold for high-priced housing are expected to intensify. Currently, purchasing or selling a home with an actual transaction price exceeding 900 million won results in increased capital gains tax and acquisition tax burdens, and apartments priced over 900 million won are not eligible for interim payment loans, among other disadvantages.

However, the Korea Appraisal Board analyzed that Seoul housing prices have somewhat stabilized this year. According to the board, as of last month, the rate of increase in housing prices narrowed in 24 out of 25 autonomous districts in Seoul. In particular, in Gangnam-gu (0.46%), Gangdong-gu (0.43%), Songpa-gu (0.41%), and Seocho-gu (0.39%), where high-priced complexes are concentrated, the rate of increase significantly slowed due to a series of urgent sales in redevelopment promotion complexes.

Meanwhile, the jeonse (long-term lease) prices of Seoul housing rose by 0.43%, an increase from 0.38% the previous week. This is interpreted as being influenced by seasonal factors concentrating jeonse demand mainly in major school districts and areas near subway stations, as well as the freezing of the sales market following the December 16 measures.

The Korea Appraisal Board stated, "In the southeastern region, including Gangnam, Seocho, and Songpa districts, and in the southwestern region, including Yangcheon-gu, a shortage of jeonse listings was observed mainly in major school districts," adding, "In Dongjak and Gangseo-gu, demand increased mainly in subway station complexes with good workplace accessibility, expanding the rate of increase."

This content was produced with the assistance of AI translation services.