Average Apartment Price Reaches 1.34 Billion Won, Marking Significant Increase
Gangnam Leads the Surge... Residential Polarization Becomes a Reality
The average home sale price in Seoul has surpassed 1 billion won for the first time ever. Analysts attribute this to the strong rise in apartment prices, particularly in the Gangnam area, which has influenced the overall housing market in Seoul.
According to the 'May Monthly Housing Price Trends' report released by KB Kookmin Bank on June 6, the average sale price of homes in Seoul (including apartments, detached houses, and multiplex houses) was 1,003.98 million won last month. This is the first time the average has exceeded 1 billion won since KB Kookmin Bank began compiling related statistics, marking the official arrival of the "1 billion won era."
This increase in the average price was largely driven by a sharp rise in apartment prices among the various types of housing. The average sale price of apartments in Seoul continued its upward trend, rising 1.19% from 1,329.65 million won in April (up 2.50% from the previous month) to 1,345.53 million won in May.
As of May, the average sale price of apartments in the 11 Gangnam districts was 1,675.14 million won, which is about 700 million won higher than the average of 977.17 million won in the 14 Gangbuk districts. This is the largest gap on record, raising concerns that regional polarization within Seoul is intensifying.
The gap in median sale prices is also clear. The median apartment price in the 11 Gangnam districts was 1,280 million won, while in the 14 Gangbuk districts it was 840 million won, making Gangnam 440 million won higher. The median price represents the middle value among all transactions and is considered meaningful as it reflects the actual experience of buyers and sellers.
The average apartment sale price in Seoul had remained around 1,270 million won from the end of last year through the beginning of this year. However, prices rebounded from March, as the February base interest rate cut coincided with the lifting of land transaction permit zones (Toheoguyeok) in some parts of Gangnam.
In March, the average apartment sale price in Seoul rose 1.42% from the previous month to 1,297.2 million won, and in April it surged 2.50% to surpass 1,300 million won. Although the expansion and re-designation of Toheoguyeok at the end of March slowed the rate of increase in May, prices still rose by 1.19%, helping to push the overall average home price above 1 billion won.
However, other types of housing besides apartments saw a relatively modest increase. In May, the average sale price of detached houses in Seoul was 1,195.39 million won, up 0.71% from the previous month, while multiplex houses rose 0.91% to 349.12 million won, showing a lower rate of increase compared to apartments.
The nationwide average apartment sale price was 525.43 million won, while in the Seoul metropolitan area it was 707.18 million won.
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