This year, as apartment prices in Seoul have sharply risen, the market capitalization has increased by more than 35 trillion won compared to last year.
On the 17th, Real Estate R114 compiled the market capitalization of Seoul apartments (based on market prices), which stood at 1,189.48 trillion won as of September, marking a 3.07% (35.43 trillion won) increase from the end of last year (1,154.05 trillion won).
The market capitalization of Seoul apartments recorded an all-time high of 1,214.66 trillion won in 2021, but then showed a decline for two consecutive years due to interest rate hikes and a sharp drop in transactions. However, this year, with the government's expansion of policy loans and a decrease in market interest rates, transaction volumes increased and apartment prices rose significantly, leading to a renewed increase in market capitalization.
As of September, the nationwide apartment market capitalization was 2,561.95 trillion won, up about 49.3 trillion won (1.96%) from last year. The rise in Seoul apartment prices has driven the overall increase in market capitalization.
On the other hand, the increase in market capitalization of apartments targeted for reconstruction was lower than the overall average. The market capitalization of reconstruction-pursuing apartments in Seoul was about 235.3 trillion won, increasing by only about 5 trillion won (2.2%) compared to last year. This appears to be influenced by a decline in profitability due to construction costs, interest rate hikes, and the implementation of the reconstruction excess profit recovery system, which has led to a decrease in the popularity of reconstruction complexes compared to the past.
By region, the market capitalization of reconstruction complexes in Incheon increased by 0.86% compared to last year, while those in Gyeonggi, Busan, and Daegu decreased compared to last year.
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