Half of Apartments in Seoul Cost over W1 Billion

      June 29, 2021 11:16

      The median price of an apartment in Seoul has surged almost 70 percent over the last four years and surpassed W1 billion for the first time (US$1=W1,132). That means more than half of all apartments in the capital now cost over W1 billion, which is well out of the range of many ordinary people.

      According to KB Kookmin Bank on Monday, the median selling price of an apartment in the capital was tallied at W1.01 billion in June, up 1.6 percent from May and the highest price since the bank began tallying such data.

      In May 2017, when President Moon Jae-in took office, it was W606.4 million, so it has increased 67 percent in four years. After surpassing W900 million in January last year, the median price rose another W100 million just a year and five months later.

      In the 11 districts south of the Han River, it stood at W1.25 billion, and in the 14 districts north of the river at W868 million.

      /Yonhap

      Lee Nam-soo at Shinhan Bank said, "In the second half of last year, even prices of more affordable apartments on the outskirts started skyrocketing, which pushed up the median price."

      The average apartment price in the greater Seoul area, which includes Gyeonggi Province and Incheon, stood at W712 million this month, surpassing W700 million for the first time. Across the country, the average has risen above W500 million to W546.2 million.

      Price inflation is particularly rampant in Gyeonggi Province and Incheon due to a widespread perception of a bubble in Seoul proper and some multiple-home owners selling their apartments to save taxes.

      But increased taxes imposed on multiple-home owners starting in June paradoxically led to a sharp drop in the number of apartments for sale as many owners chose to shoulder the burden or transfer properties to their children rather selling them, causing residential property prices to rise again.

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