Seoul Small Apartments Over 530 Million Won... Rocket Surge During 4 Years of Moon Administration

Gyeongsilryeon, Analysis of Apartment Price Changes by Administration

Seoul apartment view from Namsan [Image source=Yonhap News]

[Asia Economy Reporter Onyu Lim] An analysis has been raised that the price of small apartments in Seoul increased by 530 million KRW during the four years of the Moon Jae-in administration. This amount is 1.5 times the combined increase of 350 million KRW during the previous Roh Moo-hyun, Lee Myung-bak, and Park Geun-hye administrations.

The Citizens' Coalition for Economic Justice (CCEJ) announced on the 14th at the CCEJ auditorium in Jongno-gu, Seoul, an analysis of the price trends of Seoul apartments by administration over the past 18 years. The survey was conducted using KB Kookmin Bank price information for 63,000 households in 22 complexes located in Seoul.

According to CCEJ, the price per 3.3㎡ of Seoul apartments rose from 12.49 million KRW in January 2003, just before the start of the Roh Moo-hyun administration, to 35.26 million KRW in December last year.

When converted to a 25-pyeong standard, the price increased from 310 million KRW to 1.19 billion KRW, a rise of 880 million KRW. In particular, the price increase since the current administration took office was 1.5 times larger than the increase during the previous three administrations. The increase over the previous 14 years was 350 million KRW, but in the recent four years, the price rose from 660 million KRW to 1.19 billion KRW, an increase of 530 million KRW. This also accounts for 60% of the total increase of 880 million KRW over the past 18 years.

By administration, the price rose by 260 million KRW during the Roh Moo-hyun administration, and only increased by 130 million KRW during the Park Geun-hye administration. During the Lee Myung-bak administration, it was analyzed that prices actually fell by 40 million KRW.

CCEJ pointed out, "President Moon Jae-in said at the 2020 New Year's press conference that he would lower house prices to pre-inauguration levels, but instead of falling, last year saw the largest increase in apartment prices in 18 years."

CCEJ analyzed that the rapid rise in house prices has made it more difficult to own a home under the current administration. Even if a worker saves their entire annual income of 34 million KRW without spending a single penny, it would take 36 years to afford a 25-pyeong apartment in Seoul. CCEJ said, "Workers cannot even dream of buying an apartment in Seoul with the fruits of their hard-earned labor."

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