Price Gap Between Mid-Sized Apartments South and North of Hangang River Exceeds 700 Million Won

View of apartments from Lotte World Tower Seoul Sky in Songpa-gu, Seoul. Photo by Jinhyung Kang aymsdream@

[Asia Economy Reporter Ryu Taemin] The average sale price difference of medium-sized apartments between north and south of the Han River in Seoul has widened to over 700 million KRW. As the preference for a ‘smart single property’ continues, it is expected that the price gap between regions will further deepen.

According to a survey conducted by real estate information provider Economy Man Lab on KB Real Estate housing price trends on the 8th, the average sale price of medium-sized apartments (exclusive area over 85㎡ to 102㎡ or less) in 11 districts south of the Han River in Seoul was recorded at 1.8997 billion KRW in May this year. This is 707 million KRW higher than the 1.1989 billion KRW in 14 districts north of the Han River. Five years ago, in May 2017, the average sale prices of medium-sized apartments in the two regions were 903.91 million KRW and 578.72 million KRW respectively, with a price difference of only 325.19 million KRW, less than half of the current gap. The difference has more than doubled in five years.

The jeonse (long-term lease) prices show a similar trend. Five years ago, the average jeonse prices of medium-sized apartments south and north of the Han River were 499.19 million KRW and 407.44 million KRW respectively, showing a difference of 91.75 million KRW. However, as of last month, the jeonse prices in the two areas were 932.33 million KRW and 633.86 million KRW respectively, expanding the gap to 298.47 million KRW.

The market expects the polarization of apartment prices between regions to intensify further. This is because the regulatory easing benefits introduced by the current government are focused more on single-homeowners than multi-homeowners, which could increase the preference for a ‘smart single property’.

Hwang Hansol, a research fellow at Economy Man Lab, said, "Multi-homeowners are disposing of less preferred properties and concentrating on locations with excellent accessibility such as near subway stations, riverside areas along the Han River, and top school districts," adding, "The price gap between north and south of the Han River will widen further."

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