Moon Administration Seoul Large Apartment Complex Prices Jump by 450 Million Won

Analysis of Market Prices by Kyungsillyeon Over 28 Years
100-Fold Gap in Housing Prices Between Gangnam and Gangbuk

[Image source=Yonhap News]

[Asia Economy Reporter Song Seung-yoon] It has been analyzed that the average market price of large apartment complexes in Seoul increased by an average of 450 million KRW during the Moon Jae-in administration. The price gap between large apartment complexes in Gangnam and Gangbuk districts of Seoul widened by 920 million KRW over the past three years, causing the price difference between Gangnam and Gangbuk to increase 100-fold over the past 28 years.

The Citizens' Coalition for Economic Justice (CCEJ) held a press conference on the 21st at the CCEJ auditorium in Jongno-gu, Seoul, announcing an analysis of Seoul apartment prices from the Kim Young-sam administration after democratization to the present. CCEJ compared apartment price changes from 1993 using real estate price data from Real Estate Bank and Kookmin Bank for 18 apartment complexes in the four Gangnam districts and 16 complexes in Gangbuk, totaling about 80,000 households (based on a supply area of 82.5㎡).

As a result, among all administrations, the average market price of 34 apartment complexes in Seoul rose by 450 million KRW during the Moon Jae-in administration, increasing from 840 million KRW in May 2017 to 1.29 billion KRW last May.

During the Kim Young-sam administration, the prices of these apartments rose from 180 million KRW (727 million KRW per 3.3㎡) at the start of the administration to 230 million KRW (915 million KRW per 3.3㎡) at the end, an increase of 50 million KRW (26%). Under the Kim Dae-jung administration, prices rose from 230 million KRW to 400 million KRW, an increase of 170 million KRW (73%). During the Roh Moo-hyun administration, prices increased by 370 million KRW (94%) to reach 760 million KRW by the end of the term. Under the Lee Myung-bak administration, prices uniquely fell by 100 million KRW (-13%) from 760 million KRW at the start to 660 million KRW at the end. However, during the Park Geun-hye administration, prices rose by 180 million KRW to reach 840 million KRW.

The gap between Gangnam and Gangbuk also widened. At the beginning of the Kim Young-sam administration in 1993, Gangnam apartment prices were 185 million KRW, and non-Gangnam apartment prices were 176 million KRW, a difference of only 9 million KRW per unit. However, as Gangnam apartment prices surged, the gap between Gangnam and Gangbuk increased to 230 million KRW by the end of the Kim Dae-jung administration and widened further to 540 million KRW by the end of the Roh Moo-hyun administration. During the Lee Myung-bak administration, when apartment prices declined, the Gangnam-Gangbuk gap narrowed from 540 million KRW at the start to 410 million KRW at the end. However, by the end of the Park Geun-hye administration, the gap had risen to 610 million KRW, and during the Moon Jae-in administration, it widened to 920 million KRW in just three years. This is 100 times the 9 million KRW gap in 1993, illustrating how much the Gangnam-Gangbuk price gap has expanded. CCEJ urged, "For President Moon Jae-in's promise to 'definitely solve the real estate problem' to be realized, patchwork policies must stop, and fundamental measures addressing the entire real estate market must be implemented."

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