Seoul's Apartment Sale Prices Surge Nearly 19% in a Year
Large Units in Metropolitan Areas See Higher Price Increases
Nationwide New Apartment Supply Drops by 62% Compared to Last Year
The sale price of private apartments in Seoul has increased by 18.8% compared to a year ago. Considering that the apartment sale price increase rate in provincial areas during the same period was about 6.1%, this is more than three times higher. Despite the apartment sale market being sluggish, prices have steadily risen, with large-sized units approaching 50 million KRW per pyeong (3.3㎡).
According to the private apartment sale price trend data announced by the Housing and Urban Guarantee Corporation on the 17th, the average nationwide price at the end of last month was recorded at 5.75 million KRW. This represents an increase of 0.6% compared to the previous month and about 8.8% compared to the same period last year.
The corporation bases its announcement on the average data from the past 12 months immediately before publication, considering all housing projects that received housing sale guarantees, excluding commercial buildings, officetels, and cooperative member sales. The sale price in Seoul was recorded at 13.35 million KRW per square meter.
The average sale price in the metropolitan area, including Seoul, was 8.51 million KRW per square meter, up 12.3% from a year ago. In the five major metropolitan cities?Busan, Daegu, Gwangju, Daejeon, Ulsan?and Sejong City, the price was 5.87 million KRW, rising 8.5% during the same period, which is similar to the metropolitan area level. Meanwhile, provincial apartments were priced at 4.62 million KRW, increasing by just over 6% compared to a year ago.
Pre-sale prices of private apartments nationwide (left) and trends in pre-sale volume. Provided by Housing and Urban Guarantee Corporation
In the metropolitan area and major cities, the sale price for large units exceeding 85㎡ was found to be higher. In Seoul, the sale price per pyeong for the 85?102㎡ type was 49.7 million KRW, which is more than 5 million KRW higher than the average sale price for all types (44.13 million KRW). In the Gyeonggi area, the average sale price per pyeong for all types was 21.61 million KRW, while the 85?102㎡ type was 26.03 million KRW, showing a difference. However, in Gwangju, the average sale price for large units was lower.
Last month, the total number of newly supplied units nationwide was 2,742, a 62% decrease compared to the same period last year (7,239 units). The metropolitan area had 767 units, and major metropolitan cities had 549 units, both decreasing by more than 1,000 units compared to a year ago. The number of units supplied in provincial areas was 1,426, shrinking by more than half compared to January of last year.
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