"If You Win Lotto 1st Prize, Real Estate..."...Can't Even Buy New Apartments in Seoul

Average No.1 Actual Income 1.4 Billion Won
Main New Apartments Exceed 1.5 Billion Won
Gangnam Median Price Has Long Surpassed 1.5 Billion Won

Apartment complexes in the Gangnam area as seen from a Seoul Metropolitan Police Agency helicopter on the 10th. Photo by Jinhyung Kang aymsdream@

Although most Lotto first-prize winners responded that they would "buy real estate" with their winnings, purchasing newly built apartments in major areas of Seoul has proven difficult. This is due to the reality that soaring housing prices have pushed the cost of new apartments above the average net amount received from the first prize.

According to the Ministry of Economy and Finance's Lottery Commission and Donghaeng Lottery on the 12th, among the 271 Lotto first-prize winners in the first half of last year, 42% answered that they planned to use their winnings to 'purchase housing or real estate' when asked about their plans for the prize money.

The average prize money for first-prize winners was 2.1 billion KRW (before tax). After taxes, the net amount received was in the mid-1.4 billion KRW range.

However, due to the recent continuous rise in housing prices, apartment prices in major complexes in Seoul and other regions are increasingly exceeding 1.5 billion KRW, a level at which mortgage loans are no longer available.

Despite the government's strong measure of a complete ban on loans, among the 25 autonomous districts in Seoul, 11 districts have actual transaction prices for 59㎡ apartments exceeding 1.5 billion KRW.

According to the Ministry of Land, Infrastructure and Transport's real transaction price disclosure system, the pre-sale right for an 84㎡ unit at Mapo Prestige Xi, scheduled for move-in this March, was already traded at 2 billion KRW in December last year.

The 127㎡ unit at Ujangsan Hillstate in Naebalsan-dong, Gangseo-gu, was sold for 1.525 billion KRW on the 3rd of last month. The previous record price (1.46 billion KRW on the 10th floor) set at the end of the previous month was broken in less than a week.

In the Gangnam area, even purchasing a median-priced apartment with a Lotto first prize is difficult. The median price refers to the price of the apartment in the middle when all apartments are lined up in order. According to the Korea Real Estate Board, as of January last month, the median price of apartments in the three Gangnam districts was 1.545833 billion KRW.

Small apartment sales prices in non-Gangnam areas have also already exceeded 1.5 billion KRW. A 59㎡ unit at Godeok Gracious in Godeok-dong, Gangdong-gu, was traded for 1.5 billion KRW on the 9th of last month, setting a record high. The same size unit at Acro Riverheim in Heukseok-dong, Dongjak-gu, was traded for 1.64 billion KRW in December last year, marking the highest price for small apartments in non-Gangnam areas.

However, it is uncertain whether the upward trend will continue. After the government announced a 'supply bomb' of 2 million housing units nationwide through the 2·4 Plan, apartment listings in Seoul increased over the course of a week.

According to Asil (Apartment Real Transaction Price), a real estate big data company, as of the 11th, seven days after the announcement of the 2·4 Plan, apartment listings in Seoul slightly increased from 40,440 to 40,532 units, a 0.2% rise.

There is also a forecast that, triggered by the 2·4 Plan, urgent sales with prices lower than previous transactions will increase before June 1, when holding tax burdens will rise and capital gains tax rates will be significantly increased.

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