Since the Inauguration of the Moon Administration, the Average Sale Price of Large Apartments in Seoul Has Risen by 1 Billion Won

Since Moon Administration's Inauguration, Average Sale Price of Large Seoul Apartments Soars from 1.4 Billion to 2.4 Billion Won
Daechi I-Park 149㎡ Unit Price Rises from 1.89 Billion Won in May 2017 to 4.6 Billion Won in October This Year

[Asia Economy Reporter Kangwook Cho] The average sale price of large apartments in Seoul has risen by 1 billion KRW since the inauguration of the Moon Jae-in administration. This is attributed to the intensified preference for so-called ‘smart one-house’?increasing the size or location of housing in prime areas of Seoul?due to various real estate regulations such as strengthened loan and tax policies by the government.

According to a review of KB Real Estate’s housing price trends by the real estate information provider Economy Man Lab on the 18th, the average sale price of large apartments in Seoul (exclusive area over 135㎡) was 1.47153 billion KRW in May 2017, when the current government took office, but soared to 2.47301 billion KRW in October this year, rising by more than 1 billion KRW.

In fact, according to the Ministry of Land, Infrastructure and Transport’s actual transaction price statistics system, the Daechi I-Park apartment in Daechi-dong, Gangnam-gu, Seoul, with an exclusive area of 149.78㎡, was sold for 1.89 billion KRW (14th floor) in May 2017, but was traded for 4.6 billion KRW (25th floor) in October this year, rising by 2.71 billion KRW (143.4%) since the Moon Jae-in administration began.

Also, the Olympic Family Town in Munjeong-dong, Songpa-gu, Seoul, with an exclusive area of 158.705㎡, was traded for 1.19 billion KRW (5th floor) in May 2017 at the start of the Moon Jae-in government, but last month it was traded for 2.84 billion KRW (4th floor), jumping by 1.65 billion KRW (138.7%).

The Woosung 1st Apartment in Sindaebang-dong, Dongjak-gu, with an exclusive area of 157.07㎡, also rose from 775 million KRW (15th floor) in May 2017 to 1.82 billion KRW (7th floor) last month, increasing by 1.045 billion KRW (134.8%).

Although the government banned mortgage loans for houses priced over 1.5 billion KRW in December 2019 to curb high-priced housing prices, the average sale price of large apartments in Seoul continues to soar as their scarcity and investment value increase due to the rising tax burden on multi-homeowners and the shortage of apartment supply in Seoul.

Meanwhile, the average price of medium-large apartments in Seoul (exclusive area over 102㎡ to 135㎡) rose by 790.77 million KRW from 805.11 million KRW in May 2017 to 1.59588 billion KRW in October this year. Medium apartments (exclusive area over 85㎡ to 102㎡) increased from 803.26 million KRW to 1.41897 billion KRW, medium-small (exclusive area over 60㎡ to 85㎡) from 544.64 million KRW to 1.09964 billion KRW, and small apartments (exclusive area 60㎡ or less) rose from 382.02 million KRW to 854.13 million KRW.

Hwang Hansol, a research fellow at Economy Man Lab, said, "Generally, large apartments have high prices and are not actively traded, but due to the continuing preference for smart one-house, prices of large apartments are also soaring."

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