"Land Price per Pyeong of Seoul Apartments Increased by 15.4 Million Won Over 3 Years of Current Government"

Analysis of Seoul Apartment Land Prices, House Prices, Officially Announced Prices, and Official Land Prices by Regime Announced by Gyeongsilryeon
"Price Increase under Roh Moo-hyun and Moon Jae-in Governments 6.5 Times That of Lee Myung-bak and Park Geun-hye Governments"

Price and Official Land Value (Jisi) Change Status of Seoul Apartments (Land + Building) by Administration

[Asia Economy Reporter Onyu Lim] An analysis revealed that the land price of Seoul apartments increased by 15.4 million KRW per 3.3㎡ during the three years of the Moon Jae-in administration. It is also claimed that the increase in Seoul apartment land prices under the Roh Moo-hyun and Moon Jae-in administrations reached 24.76 million KRW per 3.3㎡, which is 6.5 times that of the Lee Myung-bak and Park Geun-hye administrations.

On the 3rd, the Citizens' Coalition for Economic Justice (CCEJ) announced data titled "Analysis of Changes in Seoul Apartment Land Prices, House Prices, Officially Announced Prices, and Officially Announced Land Prices by Administration" at the CCEJ auditorium in Jongno-gu, Seoul. The survey targeted a total of 63,000 households across 22 apartment complexes, including five apartments in the Gangnam 3 districts (Gangnam, Seocho, Songpa) and 17 apartments outside Gangnam.

According to CCEJ, the land price of Seoul apartments per 3.3㎡ rose from 11.49 million KRW in 2003 to 39.56 million KRW this year, an increase of 2.4 times (28.07 million KRW). The apartment land price is calculated by subtracting the building value (applied at 1 to 5 million KRW per 3.3㎡ depending on the building's age) from the apartment market price.

By administration, the Moon Jae-in government recorded the highest increase of 15.4 million KRW, followed by ▲Roh Moo-hyun government 9.36 million KRW ▲Park Geun-hye government 5.23 million KRW ▲Lee Myung-bak government -1.92 million KRW. A CCEJ official explained, "The increase of 24.76 million KRW over eight years under the Roh Moo-hyun and Moon Jae-in administrations is 6.5 times higher than the 3.31 million KRW increase over nine years under the Lee Myung-bak and Park Geun-hye administrations."

Price and Official Land Value Changes of Gangnam Apartments (Land + Building) by Administration

When divided into Gangnam and non-Gangnam areas, the apartment land price per 3.3㎡ in Gangnam rose from 18.65 million KRW in 2003 to 68.28 million KRW this year, an increase of 50.63 million KRW over 17 years. The increases by administration were ▲Moon Jae-in government 26.93 million KRW ▲Roh Moo-hyun government 18.33 million KRW ▲Park Geun-hye government 10.49 million KRW ▲Lee Myung-bak government -5.12 million KRW. The combined increase of 45.26 million KRW under the Roh Moo-hyun and Moon Jae-in administrations is 7.4 times the 5.37 million KRW increase under the Lee Myung-bak and Park Geun-hye administrations.

The apartment land price per 3.3㎡ in non-Gangnam areas rose from 1.07 million KRW in 2003 to 31.11 million KRW this year, an increase of 21.04 million KRW over 17 years. The Moon Jae-in government saw the largest increase of 12.01 million KRW, followed by ▲Roh Moo-hyun government 7.22 million KRW ▲Park Geun-hye government 3.67 million KRW ▲Lee Myung-bak government -1.86 million KRW. The combined increase of 19.23 million KRW under the Roh Moo-hyun and Moon Jae-in administrations is ten times the 1.81 million KRW increase under the Lee Myung-bak and Park Geun-hye administrations. A CCEJ official explained, "The gap in apartment land prices per 3.3㎡ between Gangnam and non-Gangnam areas widened from 22.25 million KRW during the Park Geun-hye administration to 37.17 million KRW during the Moon Jae-in administration."

CCEJ also pointed out that the official land price's reflection rate of market prices was lowest during the Moon Jae-in administration. The rates were ▲Moon Jae-in government 41% ▲Roh Moo-hyun government 44% ▲Park Geun-hye government 47% ▲Lee Myung-bak government 51%. The low reflection rates during the Roh Moo-hyun and Moon Jae-in administrations are due to the rapid rise in land market prices during this period, which the official land prices failed to keep up with. A CCEJ official added, "Currently, the official apartment price's market price reflection rate is close to 70%, but the official apartment land price's reflection rate is 41%, showing a difference of more than 30 percentage points." CCEJ also claimed that this situation provides tax benefits to conglomerates and building owners.