Kim Sang-hoon "Half of Seoul Apartments Under 600 Million Won Disappeared Since Moon Administration Inauguration"

[Asia Economy Reporter Lee Ji-eun] Since the launch of the Moon Jae-in administration, apartments priced below 600 million KRW have disappeared from more than half of the entire Seoul area.

On the 21st, Kim Sang-hoon, a member of the National Assembly Land, Infrastructure and Transport Committee from the People Power Party, announced that an analysis of the Seoul apartment sales price status (May 2017 to June 2020) by the Korea Real Estate Board showed that the proportion of apartments priced at 600 million KRW or less in Seoul sharply declined from 67.3% in May 2017, the month President Moon Jae-in took office, to 29.4% as of June 2020.

Additionally, the proportion of apartments priced over 900 million KRW increased about 2.5 times, from 15.7% to 39.8%. The share of ultra-high-priced apartments exceeding 1.5 billion KRW also expanded from 3.9% to 15.2%.

Among the autonomous districts, Gangdong-gu saw the largest decrease in the proportion of apartments priced below 600 million KRW. In May 2017, apartments priced at 600 million KRW or less accounted for 74.9%, but by June 2020, this figure plummeted to 8.9%. Conversely, apartments priced over 900 million KRW surged from 0.4% to 49.0%.

In Gangbuk, where access for actual buyers was easier, the phenomenon of 'disappearance of 600 million KRW apartments' intensified. In Seongbuk-gu, the proportion shrank from 97.0% to 33.6%, in Dongdaemun-gu from 88.9% to 26.0%, and in Seodaemun-gu from 88.6% to 26.5%. Meanwhile, the share of apartments priced over 900 million KRW in these areas was close to 0% at the start of the Moon administration but increased to 11.3%, 20.9%, and 26.0%, respectively, after three years.

In the popular 'Mayongseong' area, the proportion of apartments priced below 600 million KRW in Mapo-gu was 54.3% in May 2017 but dropped to 6.1% by June 2020. Conversely, apartments priced over 900 million KRW increased from 7.1% to 61.3%. In Seongdong-gu, apartments priced below 600 million KRW decreased from 60.6% to 2.4%, while those priced over 900 million KRW rose from 5.0% to 65.6%.

In Gwangjin-gu, apartments priced below 600 million KRW fell from 53.9% to 3.5%, and those priced over 900 million KRW increased from 12.0% to 68.3%. In Dongjak-gu, apartments priced below 600 million KRW dropped from 59.7% to 4.5%, while those priced over 900 million KRW rose from 2.0% to 52.1%.

The Gangnam area, known for its many high-priced homes, saw a significant increase in ultra-high-priced apartments exceeding 1.5 billion KRW. In Gangnam-gu, apartments priced over 1.5 billion KRW rose from 26.8% to 73.5% as of 2020, and in Seocho-gu, they expanded from 22.4% to 67.2%. Songpa-gu also saw an increase from 5.3% to 43.1%.

Rep. Kim said, "I have no idea what exactly happened over the past three years. It is as if a 'housing price bomb' was dropped on Seoul," and criticized, "The Moon administration's half-baked real estate policies not only kicked away the housing ladder for actual buyers but also damaged it beyond repair."