Seoul Housing Prices Become an Unbeatable Wall... 18.68 Million KRW Increase per Pyeong Since Moon Jae-in Administration

[Asia Economy Reporter Onyu Lim] The registered population of Seoul has fallen below 10 million for the first time in 32 years. As of the end of last year, the population of Seoul was 9,911,088. A major cause of the population decline in Seoul is cited as the high housing prices. Although the Moon Jae-in administration announced real estate measures 25 times after its inauguration, Seoul apartment prices have continued to soar, becoming an insurmountable "neomsabyeok" (a four-dimensional wall that cannot be overcome).

In fact, since the Moon Jae-in administration took office, the average apartment sale price per 3.3㎡ (pyeong) in Seoul has risen by 18.68 million KRW, increasing the housing burden on Seoul residents.

According to real estate information provider Economy Man Lab on the 24th, the average apartment sale price per 3.3㎡ in Seoul was 23.26 million KRW in May 2017, but by February this year, it had risen to 41.94 million KRW, an increase of 18.68 million KRW since the Moon Jae-in administration took office.

In particular, Gangnam-gu was confirmed as the area with the highest increase in average apartment sale price per 3.3㎡ in Seoul. In May 2017, the average apartment sale price per 3.3㎡ in Gangnam-gu was 43.97 million KRW, but by February this year, it had risen to 74.92 million KRW, an increase of 30.95 million KRW.

Excluding Gangnam-gu, there were eight autonomous districts where the average sale price per 3.3㎡ rose by more than 20 million KRW after the Moon Jae-in administration. Seocho-gu ranked second in Seoul with an increase from 38.31 million KRW in May 2017 to 64.7 million KRW in February this year, a rise of 26.4 million KRW, followed by Songpa-gu, which rose from 28.7 million KRW to 53.48 million KRW, an increase of 24.78 million KRW, showing a strong upward trend in apartment prices in the three Gangnam districts.

The overwhelming rise in apartment prices in Gangnam-gu can also be seen in actual transaction prices. The 'Dogok 1st I-Park' apartment in Dogok-dong, Gangnam-gu, with an exclusive area of 84.122㎡, was traded at 1.04 billion KRW (5th floor) in May 2017, but on February 17 this year, it was sold for 2 billion KRW (6th floor), rising by 960 million KRW (92.3%).

The representative reconstruction project complex in Gangnam, 'Eunma Apartment,' also soared by 1 billion KRW after the Moon Jae-in administration. In May 2017, a 76.79㎡ unit in Eunma Apartment was sold for 1.2 billion KRW (6th floor), but in February this year, it was traded for 2.2 billion KRW (5th floor), confirming an 83.3% increase since the Moon Jae-in administration.

The 'Hyundai Hillstate 2nd Complex' in Samseong-dong, Gangnam-gu, with an area of 84.236㎡, was traded at 1.42 billion KRW (18th floor) in May 2017, but in February this year, it was sold for 2.6 billion KRW (19th floor), rising by 1.18 billion KRW and recording an 83.1% increase.

Hwang Hansol, a research fellow at Economy Man Lab, said, "Due to the rise in official land prices, the tax burden on multi-homeowners has increased, which may lead to price adjustments in some apartments. However, in the case of Gangnam-gu, demand is solid compared to other areas, and since homeowners can dispose of properties through gifts, stabilizing apartment prices may be difficult."

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