Seoul-Regional Apartment Prices Differ by 850 Million Won... Gap Widens Further

[Asia Economy Reporter Ryu Taemin] Since the Moon Jae-in administration took office, the price gap between apartments in Seoul and the five major metropolitan cities has widened.

According to an analysis of KB Kookmin Bank Liv Real Estate data by real estate information provider Economy Man Lab on the 5th, as of December last year, the average apartment sale price in Seoul and the five major metropolitan cities was 1,249.78 million KRW and 397.01 million KRW respectively, widening the price gap between regions to 852.77 million KRW.

As of May 2017, the average apartment sale price in Seoul and the five major metropolitan cities was 607.08 million KRW and 262 million KRW respectively, with a gap of 345.08 million KRW. Since the current administration took office, Seoul apartment prices soared by 105.9%, while house prices in the five major metropolitan cities rose by only 51.5%, thus widening the gap further.

This polarization is also evident in actual transaction prices. According to the Ministry of Land, Infrastructure and Transport's real transaction price disclosure system, an 84㎡ (exclusive area) apartment in 'Acro River Park' in Banpo-dong, Seocho-gu, Seoul was traded for 1.945 billion KRW in May 2017, but on December 26 last year, a sales contract was signed for 3.98 billion KRW, rising by 2.035 billion KRW.

On the other hand, an 84㎡ apartment in 'Munsu-ro 2nd I-Park Complex 1' in Sinjeong-dong, Nam-gu, Ulsan was traded for 578 million KRW in May 2017, but changed hands for 1.135 billion KRW on December 17 last year, rising by 557 million KRW. An 84㎡ apartment in ‘Triple City 5 Complex’ in Sangdae-dong, Yuseong-gu, Daejeon also changed hands for 710 million KRW on December 15 last year, rising by 310 million KRW compared to 490 million KRW in 2017, and an 84㎡ apartment in ‘Myeongnyun I-Park Complex 1’ in Dongnae-gu, Busan rose by 322 million KRW from 578 million KRW to 900 million KRW during the same period.

Hwang Hansol, a research fellow at Economy Man Lab, explained, “Due to the strengthening of holding taxes on multi-homeowners, the preference for owning a single well-chosen property is increasing,” adding, “The regional polarization between Seoul and the five major metropolitan cities will continue to deepen.”

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