Seoul Metropolitan Area Apartment Presale Prices Rise 16.6% in One Year

33.02 Million Won per 3.3 Square Meters as of March This Year

The selling price of apartments in the Seoul metropolitan area has surged by more than 16% over the past year.

According to an analysis by the real estate information provider RealToday of presale price data from the Housing and Urban Guarantee Corporation (HUG) on April 22, as of March this year, the average presale price for private-sector apartments in the Seoul metropolitan area stood at 33.02 million won per 3.3 square meters. This represents a 2.6% increase from 32.17 million won a month earlier and a 16.6% jump compared to 28.32 million won a year ago. When converted to the popular 84-square meter exclusive area, known as the "national standard," this means that the average cost to purchase a new apartment in Seoul is around 1.1 billion won.

The rise in presale prices is attributed to several factors: increases in raw material prices, higher labor costs, and the application of stricter construction standards. In addition, the burden of financial costs, such as interest on real estate project financing (PF) loans under the current high-interest rate environment, has also been passed on to presale prices.

Both the supply of land for building and the number of new homes being constructed are decreasing. This year, the number of apartment move-ins in the Seoul metropolitan area is expected to total only 112,064 units, which is a 15.1% decrease from last year. Permit approvals—a leading indicator of housing supply—also fell by 24.6% year-on-year as of the cumulative total up to February this year.

A perspective view of 'Anyang Station Central IPARK Sujain' sold last February. IPARK Hyundai Development Company · BS Hanyang

Given these circumstances, even with high presale prices, complexes with clear future value are attracting a flood of applicants. RealToday analyzed, "As presale prices rise, buyers are seeking a definite sense of asset stability," adding, "They are focusing on complexes that combine brand reputation, proximity to subway stations, excellent school districts, and solid development prospects."

'Anyang Station Central IPARK Sujain' in Manan-gu, Anyang, Gyeonggi Province, which was launched for sale last February, had a presale price of over 1.26 billion won for the 84-square meter exclusive area. Despite this, 182 people applied for just one available unit. Across the whole complex, there were 1,904 first-priority applications for 185 general units, resulting in a competition ratio of 10.29 to 1. Manan-gu in Anyang is a non-regulated area within the metropolitan region, so subscription restrictions such as re-winning limits and resale bans are relatively less strict. After the opening of the Wolgot–Pangyo double-track railway (Wolpan Line) in November 2029, following the existing Anyang Station on Line 1, the complex will have the advantage of being a "double station area."

'Ssangyong The Platinum Onsu Station' in Sosa-gu, Bucheon also saw intense competition, with 1,317 applicants for 109 units—despite having one of the highest presale prices in Bucheon—yielding a competition ratio of 12 to 1. The presale price for the 84-square meter exclusive area is 1.1376 billion won. By comparison, a nearby apartment of the same size at 'ePyeonhansesang Onsu Station,' which was completed in 2020, was traded for 850 million won (24th floor) on April 19, making the new complex nearly 300 million won more expensive. Onsu Station, located near the complex, is a "double station area" where subway lines 1 and 7 intersect. Its direct connections to core routes to Gangnam and Yeouido in Seoul have offset the burden of the high presale price, as buyers can enjoy the benefits of a "Seoul lifestyle zone."

Experts predict that the upward trend in presale prices will continue for the time being, given that the factors driving up construction costs have not been resolved and that the supply drought persists.

A real estate industry official stated, "With construction cost pressures still present and supply indicators worsening, the perception is spreading that today is the cheapest time to buy." He added, "Although price resistance has certainly increased, buyers are actively subscribing to complexes with clear locational advantages and strong brand credibility, expecting them to lead local price trends in the future."

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