During Moon Administration's 4 Years, Seoul Apartment Prices Rose by 20 Million KRW per Pyeong

May 2017: 23.25 million KRW → May 2021: 43.58 million KRW

The top capital gains tax rate on housing will be increased to 75% starting from the 1st of next month. The taxpayers subject to property tax and comprehensive real estate tax will also be finalized as of that date. However, the property tax rate has not been finalized due to the legislative amendment process, and the comprehensive real estate tax rate is still under further discussion. The photo shows the view of apartments in the Gangnam area from the Lotte World Tower Sky Observatory in Songpa-gu, Seoul. Photo by Dongju Yoon doso7@

[Asia Economy Reporter Onyu Lim] During the four years of the Moon Jae-in administration, the average sale price per 3.3㎡ of apartments in Seoul surged by more than 20 million KRW.

According to real estate information provider Economy Man Lab on the 2nd, as of the end of last month, the average sale price per 3.3㎡ of apartments in Seoul recorded 43,582,000 KRW. Compared to the average price of 23,259,000 KRW at the time of the Moon administration's inauguration in May 2017, it rose by 20,320,000 KRW over four years. In terms of growth rate, it reached 87.4%.

Among the 25 autonomous districts, the areas with the highest price increases were the Gangnam 3 districts. Gangnam-gu rose from 43,971,000 KRW to 76,371,000 KRW during this period, an increase of 73.7%. Seocho-gu also increased by 28,410,000 KRW from 38,306,000 KRW to 66,716,000 KRW, and Songpa-gu rose from 28,700,000 KRW to 55,541,000 KRW, with a growth rate of 93.5%.

The price increase trend is also confirmed in actual transaction prices. In Daechi-dong, Gangnam-gu, a 76.79㎡ Eunma apartment (exclusive area) was transacted for 1.2 billion KRW (7th floor) in May 2017, but was traded for 2.25 billion KRW (7th floor) on May 11 this year. This means it rose by 1.05 billion KRW (87.5%) over four years.

Besides the Gangnam 3 districts, apartment prices in Nowon, Dobong, and Gangbuk-gu also doubled. A Hyundai apartment of 84.98㎡ in Wolgye-dong, Nowon-gu, Seoul, was traded for 423 million KRW (7th floor) on May 11, 2017, but was traded for 900 million KRW (6th floor) on May 5 this year.

Hwang Hansol, a research analyst at Economy Man Lab, said, "The Moon Jae-in administration claimed that there was no problem with supply and that the issue was speculative demand, so they blocked supply and suppressed demand. However, since apartment prices rose due to supply shortage, it seems that price stabilization can be achieved only if private supply follows public-led supply."

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