Soaring Housing Prices Push Seoul's Small and Medium Apartments Close to 1 Billion Won

Nearly 300 Million KRW Surge in the Last 2 Years
Gangnam Reaches 1.1 Billion KRW, Gangbuk Enters 800 Million KRW Range

[Asia Economy Reporter Kangwook Cho] The average cost of purchasing a small to medium-sized apartment in Seoul has nearly reached 1 billion KRW. This is due to a surge in housing prices by nearly 300 million KRW over the past two years.

According to the monthly KB Housing Market Trend time series data released by KB Kookmin Bank Liv Real Estate on the 27th, the average sale price of small to medium-sized apartments in Seoul in April was 986.58 million KRW, an increase of 292.37 million KRW compared to two years ago. This represents a sharp rise of 42.1%.

The price of small to medium-sized apartments, which was 694.22 million KRW two years ago and did not reach 700 million KRW, is now close to 1 billion KRW. If someone postponed buying a house two years ago, they would now need about 300 million KRW more to purchase the same house.

In this survey, small to medium-sized apartments were defined as having an exclusive area of over 60㎡ up to 85㎡. This area, known in the market as '25 to 34 pyeong apartments' (based on supply area), is a popular size preferred by newlyweds and families of three to four members.

By region, the average sale price of small to medium-sized apartments in the Gangnam area (11 districts south of the Han River) was 1.15153 billion KRW, while in the Gangbuk area (14 districts north of the Han River) it was 854.32 million KRW. Notably, the price of small to medium-sized apartments in Gangnam exceeded 800 million KRW in August 2018, surpassed 900 million KRW in January last year after one year and five months, then exceeded 1 billion KRW in August of the same year, and finally surpassed 1.1 billion KRW in January this year, just five months later. Housing prices have risen by 200 million KRW in just one year recently. In Gangbuk, the average price entered the 600 million KRW range in August 2019, exceeded 700 million KRW for the first time 11 months later, and then surpassed 800 million KRW six months after that. The housing price increase has been steep in both Gangnam and Gangbuk over the past one to two years.

According to the Ministry of Land, Infrastructure and Transport's real transaction price disclosure system, in the Gangnam area, an 84.98㎡ apartment in Ogeum-dong, Songpa-gu, Sang-A 2nd Apartment was traded for 1.28 billion KRW (1st floor) on the 3rd, which is an increase of 463 million KRW compared to the same floor sold for 817 million KRW in May 2019. Also, an 84.98㎡ apartment in Sadang-dong, Dongjak-gu, near Isu Station was sold for 1.02 billion KRW (13th floor) in April 2019 and then for 1.395 billion KRW (11th floor) on the 18th of last month, rising by 375 million KRW over two years.

In Gangbuk, a contract was signed on the 3rd for an 84.83㎡ apartment in Samseon-dong 2-ga, Seongbuk-gu, Samseon Prugio, at 920 million KRW (2nd floor), which is 300 million KRW higher than the 620 million KRW (10th floor) price in June 2019. Also, an 84.98㎡ apartment in Bulgwang-dong, Eunpyeong-gu, Bukhansan Raemian was traded for 990 million KRW (12th floor) last month, up 265 million KRW from about 725 million KRW (11th floor) two years ago.

Meanwhile, the average sale price of small apartments (60㎡ or less) in Seoul was 775.78 million KRW, medium-sized apartments (85 to 102㎡) were 1.24844 billion KRW, and medium-large apartments (102 to 135㎡) were 1.46546 billion KRW. The price of large apartments over 135㎡ was 2.23281 billion KRW, which exceeded 2 billion KRW for the first time last month and rose by 21.75 million KRW in just one month.

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