Rose Again... Average Sale Price of Private Apartments in Seoul Reaches 31 Million KRW per 3.3㎡

Seoul Apartment Sale Prices Recover to 30 Million Won Range in January, Then Rise
Cement Price Increase... Potential for Further Sale Price Rise

In May of this year, the sale prices of private apartments in Seoul continued to rise for the third consecutive month. The average sale price per 3.3㎡ of private apartments in Seoul exceeded 31 million KRW in the same month. Due to rising raw material costs, interest rate hikes increasing construction costs, and the lifting of the price ceiling system, sale prices have been steadily increasing. With the almost certain additional increase in cement prices, a major cause of rising construction costs, sale prices are expected to rise further.

[Image source=Yonhap News]

According to the private apartment sale price trends in Seoul as of the end of May, released by the Housing and Urban Guarantee Corporation (HUG) on the 15th, the average sale price of private apartments in Seoul was 9,414,000 KRW per ㎡, or 31,066,200 KRW per 3.3㎡. This represents a 1.38% increase from the previous month (9,286,000 KRW per ㎡). Compared to May last year (8,550,000 KRW per ㎡), it rose by 10.11%. The sale price per 3.3㎡ of private apartments in Seoul has maintained the 30 million KRW range for five consecutive months after recovering it in January this year.

Last month, the average sale price per 3.3㎡ of private apartments in the metropolitan area was 22.23 million KRW, up 11.07% compared to the same month last year and 0.79% compared to the previous month. The average sale price per 3.3㎡ of private apartments nationwide was 16.14 million KRW. This is an increase of 11.77% year-on-year and 0.96% month-on-month.

The five major metropolitan cities and Sejong recorded 17.10 million KRW, up 11.27% compared to May last year and 2.65% compared to the previous month. Other provinces recorded 13.13 million KRW, up 12.71% year-on-year but down 0.53% month-on-month. HUG’s average sale prices are surveyed based on private sale projects for which sale guarantees were issued during the 12 months immediately prior to publication.

Last month, the number of newly supplied private apartments nationwide was 7,213 units, a 53% decrease compared to the same month last year (15,497 units). In the metropolitan area, 3,674 units were newly supplied; in the five major metropolitan cities and Sejong, 2,752 units; and in other provinces, 787 units.

There are also forecasts that sale prices will rise further. This is because an additional increase in cement prices, a major cause of rising construction costs, is almost certain. Ssangyong C&E, the industry leader, announced it will raise cement prices by 14% starting next month, followed by Sungshin Cement joining the price hike trend.

On the 2nd, Sungshin Cement notified ready-mix concrete companies via an official letter that starting in July, the price of Type 1 bulk cement, currently 105,000 KRW per ton, will be increased by 14.3% to 120,000 KRW. Ssangyong C&E has announced that from next month, the price of Type 1 bulk cement will rise by 14.1%, from 104,800 KRW per ton to 119,600 KRW.

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