National Apartment Prices Rise 40% in 4 Years... Sejong City Prices Doubled

Seoul up 79.8%, Daejeon 53.3%, Gyeonggi 42.5% increase
Gangwon, Chungbuk, Chungnam decline... "Price polarization intensifies"

[Image source=Yonhap News]

[Asia Economy Reporter Onyu Lim] Although the Moon Jae-in administration waged a 'war against real estate speculation forces,' the average apartment sale price nationwide has risen by more than 40% over the past four years. In particular, apartment prices in Sejong City, which was a hot topic due to the 'administrative capital relocation' issue, soared by over 100%, recording the highest increase rate among the 17 cities and provinces nationwide.

On the 11th, real estate information company Economy Man Lab analyzed the housing price trends of KB Real Estate Live On and found that the average apartment sale price per 3.3㎡ nationwide rose from 12.46 million KRW in January 2017 to 17.78 million KRW in January this year, an increase of 5.32 million KRW (42.7%).

The steepest rise was in Sejong City. The average apartment sale price per 3.3㎡ in Sejong City increased from 9.79 million KRW to 20.02 million KRW during the same period, a 104.5% rise. For example, the First Village 1st Complex First Prime 84㎡ (exclusive area) in Hansol-dong, Sejong City, was sold for 338 million KRW (11th floor) in January 2017, but this January, a sales contract was signed for 800 million KRW (10th floor), marking a 2.4 times increase in price.

In Seoul, prices rose from 22.87 million KRW to 41.11 million KRW during this period, up 79.8%, followed by Daejeon (53.3%) and Gyeonggi Province (42.5%).

In particular, apartment prices in Nowon-gu, Seoul, a representative area densely populated with mid-to-low priced complexes, soared 2.3 times over four years. For instance, an 84㎡ apartment in Cheonggu 3, Junggye-dong, Nowon-gu, Seoul, was sold for 530 million KRW (2nd floor) in January 2017, but last month it was sold for 1.2 billion KRW (3rd floor), increasing by 670 million KRW.

On the other hand, the average apartment sale price per 3.3㎡ in Gangwon, Chungbuk, Chungnam, Gyeongbuk, and Gyeongnam decreased compared to 2017, widening the price gap between Seoul, the five major metropolitan cities, and other major cities.

Additionally, from January 2017 to last month, the region with the highest increase rate in average apartment jeonse (long-term deposit lease) price per 3.3㎡ nationwide was also Sejong City. The average apartment jeonse price per 3.3㎡ in Sejong City was 6.549 million KRW in January 2017 but rose 42.4% to 9.327 million KRW in January this year.

Hwang Hansol, a research fellow at Economy Man Lab, said, “The Moon Jae-in administration regulated finance, taxation, and supply by declaring a war against real estate speculation forces over the past four years, causing apartment prices to surge sharply in a short period.” He added, “Fortunately, with recent supply measures introduced, the rapid price increase is expected to ease.”

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