Incheon Tops Last Year's House Price Increase Rate... 20-Year Accumulated Growth Led by Seoul

[Asia Economy Reporter Kim Hyemin] Last year, the region with the highest house price increase rate was Incheon. Over a 20-year cumulative increase rate, Seoul took the top spot. Experts advised that since the average home ownership period is about 10 years, approaching the market solely based on short-term price fluctuations can lead to misjudgments in determining the timing of real estate purchases.

According to Real Estate R114 on the 3rd, last year Incheon's house price increase rate was 34.52%, ranking first nationwide.

However, when expanding the timeline to the recent 5 years (2017?2021) and 10 years (2012?2021), Sejong City ranked first with increases of 111.77% and 168.42%, respectively.

Extending the period further to the recent 15 years, Busan showed the highest increase at 191.2%. In the case of Seoul, although last year's increase rate was lower compared to other regions, over the recent 20 years (2002?2021), it recorded the highest increase rate at 419.42%. While Incheon and Sejong City had higher short-term growth, Seoul and Busan were more advantageous from a long-term holding perspective.

Yoon Jihae, Senior Researcher at Real Estate R114, said, "The criteria for undervaluation can also vary depending on the reference period, just like the increase rate. If the asset is to be held for about 10 years, it is necessary to weigh the timing of entry by considering whether to purchase a home from a long-term perspective of over 5 years rather than a short-term view."

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