Affordable Apartments Vanish from Seoul

      August 28, 2020 13:08

      The number of apartments in Seoul costing less than W600 million, which is considered mid-priced, has plummeted by half, making the dream of home ownership in the capital an ever more distant dream for many (US$1=W1,185).

      In late 2017, 57.5 percent of apartments in Seoul or 713,573 cost less than W600 million, according to property information service Real Estate 114. But by August this year the proportion had fallen to a mere W26.4 percent or 328,168.

      The W600 million threshold has been set by the Korea Housing Finance Corporation to calculate the price of an apartment that qualifies for low-interest housing loans for married couples whose combined annual salary is less than W70 million.

      The prices of low to mid-price apartments are skyrocketing exponentially due to the short supply.

      /Yonhap

      According to KB Kookmin Bank, the average price of apartments in the bottom price range in the capital surged 37.8 percent compared to two years ago to W430 million. In contrast, apartment prices in the top range rose only 21.5 percent on average to W1.88 billion.

      As of this month, only 2.8 percent of all apartments in the capital cost less than W300 million.

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