Housing price in Daejeon and Busan increased three times faster than the national average last year, even faster than in Gangnam, southern Seoul, where housing prices bubble are the most inflated.
According to data published by Kookmin Bank on Monday, property prices increased an average of 1.5 percent across the nation. The increase rate slowed down in Seoul from 5 percent in 2008 to 2.7 percent in 2009. In Incheon, prices fell 0.3 percent, and in Gyeonggi Province they rose 0.3 percent.
But Daejeon and Busan saw prices go up by 4.7 and 4.1 percent, even surpassing the average of 11 districts in so-called Gangnam area, including Gangnam, Seocho and Songpa, where it was 3.9 percent.
With a rise of 8.4 percent last year, Yeongdo-gu in Busan had the second highest growth rate in the country after Gwacheon City, which saw 16.5 percent. The third place went to Seo-gu in Daejeon with 7.7 percent.
With the opening of major department stores, notably Centum City, living standards in Busan improved significantly, the bank said. Completion of the Namhang Bridge and the start of construction of the Bukhang Bridge also worked in favor of the real estate market in Busan.
Gangdong-gu, Seoul's easternmost district where expectation of redevelopment plans was high, had the fourth highest growth rate with 6.8 percent. Yangcheon-gu in western Seoul came in eighth thanks to the opening of the subway line 9 and continued high demand for flourishing private education there. Gangnam-gu was in ninth with 5.1 percent growth.