"Are Sale Prices Cheaper?" Apartment Sale Prices Surpass Last Year's for the First Time in 15 Years

520 Million KRW More per 3.3㎡ in Seoul
Driven by Rising Construction Material and Logistics Costs

The average apartment sale price per pyeong nationwide has surpassed the market price for the first time in 15 years. The upward trend in sale prices is expected to continue due to increases in construction costs, logistics expenses, and labor costs.

According to data compiled on the 29th by the market research firm Real Estate R114, the average sale price per 3.3㎡ of apartments nationwide and in Seoul last year was 20.63 million KRW and 48.2 million KRW, respectively. During the same period, apartment market prices were recorded at 19.18 million KRW nationwide and 43 million KRW in Seoul.

Based on the standard size of 84㎡, known as the national standard size, the nationwide sale price was 50 million KRW higher than the market price, and in Seoul, it was 170 million KRW higher. This is the first time since 2009 that nationwide apartment sale prices have exceeded market prices.

Apartment in Seoul city. Photo by Yonhap News

Looking at the trend in the Seoul area, in 2018, sale prices were about 500,000 KRW higher per 3.3㎡ compared to market prices, whereas after stricter sale price regulations in 2019, sale prices became 4.4 million KRW lower than market prices.

The gap between sale prices and market prices thereafter was △ 10.12 million KRW in 2020 △ 14.55 million KRW in 2021 △ 6.43 million KRW in 2022 △ 5.04 million KRW in 2023, narrowing since 2021, and in 2024, the trend reversed for the first time in six years since 2018.

By region, the differences were △ Jeju 12.45 million KRW △ Ulsan 10.96 million KRW △ Busan 9.54 million KRW △ Gwangju 9.53 million KRW △ Gyeongbuk 8.58 million KRW △ Daegu 8.34 million KRW △ Daejeon 7.66 million KRW △ Gangwon 6.66 million KRW △ Jeonnam 6.49 million KRW △ Gyeongnam 6.30 million KRW. All 17 metropolitan cities and provinces experienced this reversal phenomenon.

Moreover, although construction costs and procurement interest rates have sharply increased in provincial areas alongside the Seoul metropolitan area, a large accumulation of unsold houses has put local construction companies in a double bind. Yoon Ji-hae, senior researcher at Real Estate R114, stated, "Due to the recent political turmoil and the resulting sharp rise in exchange rates, the cost of imported construction materials and logistics has increased," adding "the upward trend in sale prices in private residential areas nationwide is expected to continue."