January 28, 2021 11:47
Even small apartments in Seoul now cost over W1 billion (US$1=W1,105).
Prices of apartments measuring 85 sq.m in working-class districts have risen above W1 billion, most recently in Dobong District in northeastern Seoul. Apartments that size have become the most popular choice of home buyers.
According to the Ministry of Land, Infrastructure and Transport on Wednesday, an 85 sq.m apartment in the River Town complex in Chang-dong, Dobong was sold on Jan. 22 for W1.05 billion, rising almost W150 million in just a month.
The complex, built 34 years ago, is being considered for renovation, which usually boosts the value of apartments. Last month, a 100 sq.m unit in the complex was sold for W1.07 billion.
Apartment prices in Nowon, Dobong and Gangbuk in northeastern Seoul and Geumcheon, Gwanak and Guro in the southeast had been relatively cheap, but they surged after the government cracked down on multiple-home owners and boosted tenants' rights.
According to KB Kookmin Bank, prices in Nowon surged 21.28 percent last year, the fastest rate in all of Seoul. Prices in Gangbuk soared 17.08 percent and in Guro 16.4 percent, compared to the city-wide average of 13.06 percent.
Yeo Kyung-hee at Real Estate 114 said, "Expectations of eased renovation rules are rising ahead of the Seoul mayoral by-election, while rents have surged, prompting any potential tenants to buy apartments instead of renting them."
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