Apartments in Other Provinces Excluding Metropolitan Cities Surpass 10 Million KRW per Pyeong

Average Sale Price per Pyeong 10.19 Million KRW
Chungbuk Shows Highest Increase Compared to Same Month Last Year
Expectations for Deregulation and Impact of Non-Regulated Areas Are Significant

[Asia Economy Reporter Hwang Seoyul] The average apartment sale price per pyeong in other provinces has exceeded 10 million KRW. With the new government taking office and growing expectations for deregulation, buying sentiment is recovering.

On the 15th, real estate research firm Realtoday analyzed KB Real Estate's monthly statistics and found that as of April, the average apartment sale price per 3.3㎡ (pyeong) in other provinces (based on exclusive area) was 10.19 million KRW, up 28% from 7.97 million KRW in the same month last year. The average sale price per 3.3㎡ steadily rose from January (9.73 million KRW) and February (9.99 million KRW), and in March (10.10 million KRW), it surpassed 10 million KRW for the first time since the survey began in April 2013.

By region, Chungbuk saw the largest increase compared to April last year. The average sale price per 3.3㎡ in Chungbuk rose 43%, from 6.86 million KRW last April to 9.82 million KRW. Following were Gangwon (9.26 million KRW), Chungnam (9.88 million KRW), and Jeju (19.88 million KRW), which increased by 35%, 30%, and 29%, respectively. During this period, Seoul (51.27 million KRW) rose by 19%.

This phenomenon is attributed to the thawing of frozen buying sentiment as the Yoon Seok-yeol government took office and expectations for deregulation grew, including expanded acquisition tax reductions and the integration of comprehensive real estate tax and property tax. Additionally, most other provinces are non-regulated areas, which has dispersed investment demand. In non-regulated areas, the loan-to-value ratio (LTV) can be applied up to 70%, and various regulations such as subscription qualifications and resale restrictions are less impactful. A Realtoday official stated, “With expectations for deregulation, buying demand is rising not only in Seoul and first-generation new towns but also in other provinces.”