It’s Only Been a While Since '600 Million'... Average Apartment Price in the Seoul Metropolitan Area Surpasses '700 Million'

Average Apartment Sale Price in Seoul Metropolitan Area in June 711.84 Million KRW
Up 15.32 Million KRW from Last Month's 696.52 Million KRW
National Average Apartment Sale Price Also Surpasses 500 Million KRW for the First Time

Apartment complexes in Songpa and Gangnam areas of Seoul as seen from Namhansanseong [Image source=Yonhap News]

[Asia Economy Reporter Onyu Lim] The average apartment sale price in the Seoul metropolitan area has surpassed 700 million KRW. This comes eight months after entering the 600 million KRW range in October last year. Analysts attribute the sharp upward trend to a worsening supply shortage and a freeze on listings caused by increased taxes on multi-homeowners.

According to the June monthly KB Housing Market Trends report by KB Kookmin Bank on the 28th, the average apartment sale price in the metropolitan area was recorded at 711.84 million KRW. This is an increase of 15.32 million KRW from 696.52 million KRW last month, marking the first time it has exceeded 700 million KRW.

The average apartment sale price in the metropolitan area first surpassed 400 million KRW in October 2016 at 407.1 million KRW, then exceeded 500 million KRW in November 2018 (501.24 million KRW) after 2 years and 1 month, and reached the 600 million KRW range in October last year (604.55 million KRW) after 1 year and 11 months. Since then, prices have surged sharply, rising by more than 100 million KRW in just 8 months.

The average apartment sale price in Seoul reached 1.14283 billion KRW. This is an increase of over 200 million KRW compared to 925.09 million KRW in June last year. Notably, the average apartment sale price in 14 districts of the Gangbuk area exceeded 900 million KRW for the first time, reaching 902.9 million KRW. The 11 districts in the Gangnam area recorded 1.35371 billion KRW.

The average apartment sale price in Gyeonggi Province was 533.19 million KRW, increasing from 511.61 million KRW in April when it first surpassed 500 million KRW. In Incheon, prices have shown a rapid monthly increase: 311.5 million KRW in January, 320.65 million KRW in February, 330.32 million KRW in March, 341.59 million KRW in April, 350.67 million KRW in May, and 364.86 million KRW in June.

As housing prices continue to rise, the nationwide average apartment sale price also surpassed 500 million KRW for the first time in June, reaching 504.62 million KRW. This is about 10 million KRW higher than last month's 494.67 million KRW. The pace of increase has accelerated recently. The nationwide average apartment sale price exceeded 300 million KRW in August 2016, and it took about 4 years to enter the 400 million KRW range. However, it took only 1 year to move from the 400 million KRW range to the 500 million KRW range.

Park Hapsu, Senior Real Estate Specialist at KB Kookmin Bank, said, "Apartment prices are rising as supply is insufficient and listings are frozen due to increased taxes on multi-homeowners, making the supply-demand imbalance more visible." He added, "Additionally, positive factors such as railway development are further stimulating buyer sentiment, influencing short-term price increases."

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