As Regulations Ease, Sale Prices Soar... Small Apartments Surpass 20 Million KRW per 3.3㎡

Despite the slump in the housing sales market, apartment sale prices nationwide have risen. This is attributed to the easing of price regulations, rising construction costs, and the impact of high interest rates. There are concerns that, in the long term, the increase in sale prices could become a negative factor for the already stagnant housing sales market.

[Image source=Yonhap News]

On the 8th, Real Estate R114 analyzed the sale prices of apartment complexes listed on the Korea Real Estate Board's subscription website and found that the average apartment sale price nationwide from January to April this year was 16.99 million KRW per 3.3㎡. This is an 11.7% increase compared to last year's average of 15.21 million KRW.

Apartment sale prices have been rising sharply due to increased construction costs and the effects of high interest rates. In particular, with the lifting of regulatory zones at the beginning of the year, the areas subject to the sale price ceiling system were drastically reduced to only four districts: Gangnam, Seocho, Songpa, and Yongsan, leading to a surge in high-priced sale complexes.

The price increase was especially steep for small apartments, which are popular among first-time homebuyers and households without homes. This year, the average sale price for apartments nationwide with an exclusive area of 60㎡ or less exceeded 20 million KRW per 3.3㎡, reaching 23.49 million KRW. This is a sharp 21.2% rise compared to last year's 19.38 million KRW.

On this day, Gwangmyeong Xi The Sharp Foretana in Gwangmyeong City, Gyeonggi Province, which opened for first-priority subscription, had a sale price for the 49.8㎡ Type B ranging from 544.4 million to 595.5 million KRW, equivalent to 26.3 to 28.8 million KRW per 3.3㎡. In March, the Haeundae Station Prugio The One in Haeundae District, Busan, with a 59.9㎡ Type B, had sale prices ranging from 582 million to a maximum of 818 million KRW, with prices per 3.3㎡ ranging from 22.4 to 31.49 million KRW.

Yeokyung Hee, Senior Researcher at Real Estate R114, analyzed, “The sale prices were set high in popular areas such as Haeundae District in Busan and Gwangmyeong City, where the sale price ceiling regulation was lifted this year, highlighting the upward trend in small apartment prices. The relatively small supply of general sale units under 60㎡ also influences the high pricing.”

Experts express concerns that the rise in sale prices could be a negative factor for the housing sales market amid the recent slump and increased risk of unsold units. Senior Researcher Yeokyung Hee predicted, “As the supply of sale units increases significantly from May, the recent slowdown in the rise of unsold units may accelerate again. While areas with low sale prices and good location conditions attract many applicants, unpopular areas or high-priced complexes are being ignored, intensifying polarization in the subscription market.”

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