June 01, 2021 12:08
The average apartment price in the Seoul metropolitan area has increased to almost W700 million over the last year (US$1=W1,110).
According to KB Kookmin Bank on Monday, the average sale price of an apartment in Seoul and neighboring Gyeonggi Province in May stands at W696.5 million, up by W9.75 million from the previous month. The average price surpassed W600 million for the first time last October and took only seven months to rise another W100 million.
The curve is getting steeper. It took two years and one month to rise from W400 million in October 2016 to W500 million in November 2018 and one year and 11 months to W600 million in October 2020.
In Seoul alone, the average apartment price in May soared more than W200 billion over the past year from W915 million to W1.12 billion.
Jeonse or Korean-style deposit leases also surged 26 percent to W614.5 million on average in Seoul and to W344.4 million in Gyeonggi Province.
Surging prices have made it even more difficult for most ordinary people to buy their own homes. KB calculated the price to income ratio (PIR) and found that it takes 17.8 years for a household in the upper 40 to 60 percent of the income bracket to be able to afford a mid-priced apartment in Seoul.
In December of last year, the PIR was 16.8 years, and in May of 2017, when President Moon Jae-in took office, 10.9 years.
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