Seoul Housing Prices Still Increasing

The increasing housing prices for small to medium apartments in the Gangbuk area of Seoul are expanding to other areas of Seoul and Gyeonggi as well.

The upward tendency for major apartments and reconstructed apartments in the metropolitan area is especially prominent, giving rise to the speculation of housing prices on the rise after hitting rock bottom.

This trend rained down on the forecasts of the government that housing prices will fall near the end of the year and is worrying consumers.

According to a real estate information company Real Estate 114 on October 2, the housing prices of “major apartments” in Seoul are skyrocketing.

The price of a 38-pyong Hyundai I-Park apartment in Mok-dong, Yangcheon rose 100 million won from 860 million won in late August.

Also, a 38-pyong Shindongah apartment in Cheongdam-dong, Gangnam jumped from 655 million won to 700 million won during the same period, and a 34-pyong Samik apartment in Suseo-dong increased from 585 million won to 600 million won.

A 24-pyong Daelim apartment at Imun-dong, Dongdaemun, a 34-pyong Hyundai I-Park apartment at Muk-dong, Jungnang-gu, a 31-pyong Daelim apartment at Haengdang-dong, Seongdong-gu and other major apartments in Gangbuk, Seoul, all rose 10 million to 20 million won each in just a month.

President of Royal Gongin at Haengdang-dong Daelim Apartment Cheon Byung-yeol says, “The owners aren’t selling because they expect prices to go even higher.”

The sale price for reconstructed apartments, which has been curbed by the government’s continuous regulations, is now soaring.

A 17-pyong Garak apartment in Garak-dong, Songpa-gu, Seoul, rose 30 million won from 730 million won in late August to 760 million won in late September.

The trend is the same for the Gyeonggi area.

A 16-pyong Jugong 2 complex at Wonmun-dong, Gwacheon, rose from 625 million won in late August to 640 million won in late September, and a 14-pyong apartment at Jugong 2 complex, Naeson-dong, Uiwang, rose from 415 million won to 430 million won in the same period.

Head of real estate information company Speedbank Kim Kwang-seok says, “Factors that secure housing prices like integrated real estate taxes, transfer income taxes, and rising interest rates are reflected in the municipal taxes already and we’ll have to watch out for the upturn.”

Meanwhile, auction information enterprise Digital Taein reported the highest national auction bidding ratio since the data was gathered in 2000 at 32.4 percent.

This is due to the investment demand flowing into the auction market as sales for apartments are growing scarce and prices are increasing.

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