Median Sale Price of Large Apartments in Seoul Rose 18% Over One Year

[Asia Economy Reporter Donghyun Choi] As the government strengthens tax regulations on multi-homeowners, it has been found that instead of reducing the number of houses, many are increasing the size of their homes, leading to a strong performance of large apartments in Seoul.

On the 24th, real estate information provider Economy Man Lab analyzed the housing price trends from KB Real Estate Live On and found that the median price of large apartments in Seoul (exclusive area of 135㎡ or more) was around 1.77666 billion KRW in May last year, but it surpassed 2 billion KRW for the first time in history in January this year, and last month it reached 2.09653 billion KRW, marking an 18% increase compared to the previous year.

During the same period, the median price of medium-sized apartments (exclusive area 62.8~95.9㎡) rose from 993.65 million KRW to 1.16758 billion KRW, an increase of 17.51%. Following that, small-to-medium apartments (exclusive area 40~62.8㎡) saw their median price rise from 616.92 million KRW in May last year to 718.92 million KRW last month, a 16.53% increase, while medium-to-large apartments (exclusive area 95.9~135㎡) increased from 1.11333 billion KRW to 1.26412 billion KRW, a 13.54% rise.

On the other hand, small apartments in Seoul (exclusive area under 40㎡) recorded the lowest growth rate among apartments by size, rising 11.46% from 319.26 million KRW in May last year to 355.86 million KRW this May.

The price increase trend of large apartments is also confirmed in actual transaction prices. According to the Ministry of Land, Infrastructure and Transport’s actual transaction price system, ‘Tower Palace 1’ in Dogok-dong, Gangnam-gu, with an exclusive area of 164㎡, was transacted at 2.38 billion KRW (40th floor) in May last year, but in May this year, it was traded at 2.98 billion KRW (43rd floor), rising by 600 million KRW in one year. This month, it was confirmed to have been transacted at 3.15 billion KRW (41st floor). ‘Acro River Park’ in Banpo-dong, Seocho-gu, 164㎡, was traded last month at 4.65 billion KRW (11th floor), which is 470 million KRW higher than the 4.18 billion KRW (13th floor) transaction in May last year. ‘LG Hangang Xi’ in Ichon-dong, Yongsan-gu, 168㎡, was traded last month at 2.815 billion KRW (14th floor), up 415 million KRW compared to the 2.4 billion KRW (15th floor) transaction in May last year.

This price increase trend of large apartments is occurring not only in Seoul but nationwide. The median transaction price of large apartments nationwide was around 888.53 million KRW in May last year, but it surpassed 1 billion KRW for the first time in history in March this year, and last month it rose to 1.0795 billion KRW, a 13.44% increase over one year. During the same period, medium-sized and small apartments increased by 12.12% and 6.98%, respectively.

O Dae-yeol, head of the research team at Economy Man Lab, said, “Due to various penalties on multi-homeowners, demand to move to a single smart home has increased, but since the proportion of large apartments in Seoul is not high, price increases are occurring mainly in key locations including the Gangnam 3 districts.”

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