Apartment Official Prices, Seoul Accounts for 40%

[Asia Economy Reporter Yoo In-ho] Due to rising housing prices, the total official price of apartment housing in the Seoul area has been found to approach 40% of the nationwide official housing prices.

According to the data on the official prices of apartment housing by city and province submitted by the Ministry of Land, Infrastructure and Transport to Song Seok-jun, a member of the National Assembly Land, Infrastructure and Transport Committee from the People Power Party, as of January 1 this year, the total official price of apartment housing was calculated to be 2,921.2718 trillion won.

This is a 10.39% increase from last year's total of 2,646.3549 trillion won. This amount corresponds to 5.7 times the national budget of 512.3 trillion won for this year.

The total price in Seoul was 1,111.2191 trillion won, accounting for 38% of the total. Compared to last year's 952.5059 trillion won, this is a 16.67% increase in one year. This is interpreted as a result of rapidly rising housing prices and the government's increase in the official price realization rate for high-priced housing.

Also, the total official price of apartment housing in Gyeonggi Province was 807.9593 trillion won, followed by ▲Busan 169.9169 trillion won ▲Incheon 139.3013 trillion won ▲Daegu 120.1081 trillion won, etc. The Seoul, Incheon, and Gyeonggi areas, collectively the metropolitan area (2,058.4797 trillion won), account for 70% of the total official price of apartment housing.

By housing type, apartments accounted for 2,614.235 trillion won or 89.5%, multi-family housing was 235.5565 trillion won (8.1%), and row houses were 71.4802 trillion won (2.4%). The total official price of apartments in Seoul was 956.50327 trillion won, which was 36.6% of the nationwide apartment total.

Compared to last year's 808.2803 trillion won, this is an 18.34% increase.

On the other hand, in some provinces, the total official price of apartment housing decreased. Jeju Island saw a 0.45% decrease in the total apartment price compared to last year. In Ulsan (-5.09%), Gangwon (-0.04%), Chungbuk (-3.09%), and Gyeongbuk (-5.23%), the total official price of row houses decreased.

For multi-family housing, decreases were seen in Ulsan (-6.12%), Chungbuk (-3.26%), Chungnam (-0.65%), Gyeongbuk (-4.94%), and Gyeongnam (-5.04%).

Meanwhile, among apartment housing, the highest price was Hanam The Hill in Hannam-dong, Yongsan, Seoul, at 6.568 billion won. The highest price for row houses was Traumhaus 5th in Seocho-dong, Seocho-gu, at 6.992 billion won, and the highest price for multi-family housing was a multi-family house in Cheongdam-dong, Gangnam-gu, at 4.192 billion won.

Assemblyman Song said, "The nationwide rise in apartment housing prices is mainly analyzed as being caused by the inflow of liquidity funds and increased demand," adding, "Due to the Moon Jae-in administration's real estate policies, apartment housing prices have recently risen further, so it is necessary to establish housing supply policies that respond to demand and regional characteristics."