[2020 National Audit] Small and Medium Apartments Rose the Most Under Moon Administration... 66% Increase

[Image source=Yonhap News]

[Asia Economy Reporter Lee Ji-eun] During the three years of the Moon administration, prices of small to medium-sized apartments ranging from 40 to less than 62.8㎡, accessible to ordinary citizens and young adults in Seoul, showed the highest rate of increase.

On the 21st, Kim Sang-hoon, a member of the National Assembly Land, Infrastructure and Transport Committee from the People Power Party, analyzed the Korea Real Estate Agency's "Seoul Apartment Average Sale Price by Size (May 2017 - July 2020)" and found that the market price of small to medium-sized apartments with exclusive area of 40 to less than 62.8㎡ rose from 372.18 million KRW to 617.41 million KRW, an increase of 65.9%.

Generally, apartments are classified by exclusive area as follows: less than 40㎡ as small, 40 to less than 62.8㎡ as small to medium, 62.8 to less than 95.9㎡ as medium, 95.9 to less than 135.0㎡ as medium to large, and 135.0㎡ or more as large.

Rep. Kim pointed out, "The price of small apartments under 19 pyeong (approximately 62.8㎡) also rose by 34% (88.92 million KRW), from 261.17 million KRW to 350.09 million KRW," adding, "Even low-priced small and small-to-medium apartments that are far from subway stations and older in age increased in price during the three years of the Moon administration, making it difficult for ordinary citizens or young adults to purchase their own homes."

In Nowon-gu, during this period, the price of small-to-medium apartments rose by 52.8%, from 271.10 million KRW to 414.35 million KRW, and small apartments increased by 53.6%, from 187.59 million KRW to 288.15 million KRW. In Guro-gu, small-to-medium apartments rose by 49.9%, and small apartments by 51.0%. On the other hand, in areas with many high-priced homes such as Gangnam-gu and Seocho-gu, the largest price increases were seen in medium-sized apartments and above.

The price increase was even greater among top-tier small and small-to-medium apartments. For example, a small 38.671㎡ unit in Hyundai Hillstate 2nd Complex in Gangnam-gu was priced at 775 million KRW three years ago but has now risen by 410 million KRW to 1.185 billion KRW, surpassing 1 billion KRW. Similarly, a small-to-medium 59.89㎡ unit in Raemian Prestige in Seocho-gu surged by 815 million KRW to 2.115 billion KRW, entering the 2 billion KRW range. Rep. Kim stated, "Over the past three years, homes that ordinary citizens can buy and live in have disappeared in Seoul," and emphasized, "There is a need to revise the overall direction of the current housing policy."

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