Gangnam Apartment Jeonse Price Surpasses 40 Million KRW per 3.3㎡ for the First Time Ever

Up 60% Compared to the Inauguration of the Moon Jae-in Administration

[Image source=Yonhap News]

[Asia Economy Reporter Jo Gang-wook] The average jeonse price per 3.3㎡ in apartments in Gangnam-gu, Seoul, has surpassed 40 million KRW for the first time. The price, which was 25 million KRW at the launch of the Moon Jae-in administration, has risen by 60%. Despite the government's supply measures such as pre-sale and designation of new housing sites to stabilize soaring housing prices, not only housing prices but also the jeonse market show no signs of calming down.

According to the monthly KB Housing Market Trends data from KB Kookmin Bank's Liv Real Estate on the 1st, the average apartment jeonse price in Gangnam-gu in August was 12.17 million KRW per ㎡, up 160,000 KRW from the previous month. Converted to 3.3㎡, it is about 40.17 million KRW, marking the first time in KB's survey that the jeonse price in any district of Seoul has exceeded 40 million KRW.

Compared to August last year (32.96 million KRW), when the new lease law was fully implemented, the price rose by 7.21 million KRW per 3.3㎡, and since May 2017 (25.33 million KRW), when the Moon Jae-in administration began, it has increased by 14.84 million KRW.

Converted to an exclusive area of 86.82㎡, the average jeonse price in Gangnam-gu last month was 1.05678 billion KRW, up 14.47 million KRW from the previous month, making it the most expensive in Seoul. Over the one year since the new lease law was implemented, it rose by nearly 200 million KRW (189.62 million KRW), and over the four years and three months since the current administration began, it increased by about 400 million KRW (390.36 million KRW).

Seocho-gu surpassed 1 billion KRW last month, rising from 999.99 million KRW in July to 1.0633 billion KRW based on 86.82㎡. It increased by 221.83 million KRW compared to a year ago and by 367.53 million KRW compared to four years and three months ago. Seocho-gu and Gangnam-gu are the only districts in Seoul where jeonse prices have exceeded 1 billion KRW.

Following them, Songpa-gu ranked third with a jeonse price of 768.53 million KRW, up 9.46 million KRW from the previous month, making the three Gangnam districts the top three in jeonse prices. Songpa-gu's price rose by 174.66 million KRW compared to a year ago and by 274.87 million KRW compared to four years and three months ago.

Last month, the average sale price per 3.3㎡ was 78.83 million KRW in Gangnam-gu and 70.60 million KRW in Seocho-gu. Gangnam-gu surpassed 40 million KRW per 3.3㎡ in February last year and exceeded 70 million KRW in September of the same year. Seocho-gu exceeded 70 million KRW for the first time last month.

The average sale price per pyeong for all apartments in Seoul last month also reached 45.61 million KRW, meaning that the price of an apartment of the national housing size of 85㎡ has on average exceeded 1.1 billion KRW. The average sale price per 3.3㎡ for Seoul apartments surpassed 40 million KRW for the first time since statistics began in April 2013, in December last year.

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