The average sale price of apartments in Seoul has nearly reached 1.6 billion won, while the average rent has surpassed 700 million won for the first time. The simultaneous rise in both sale and rental prices is increasing the housing cost burden for prospective buyers.
According to KB Real Estate's housing price trends released on July 28, the average sale price of apartments in Seoul is recorded at approximately 1.59 billion won, indicating that it is on the verge of surpassing the 1.6 billion won mark.
Regionally, the average sale price in the 11 districts of Gangnam is around 1.977 billion won, nearing the 2 billion won threshold. The 14 districts in Gangbuk also show an average price exceeding 1.02 billion won, reflecting a general increase in prices across Seoul.
The average sale price of apartments in the metropolitan area is reported to be around 780 million won, while the national average ranges from 510 million to 520 million won.
The rental market is experiencing similar trends. The average rent for apartments in Seoul has exceeded 700 million won for the first time since KB Real Estate began compiling statistics. The average rent in the 11 districts of Gangnam is recorded at 810 million to 820 million won, surpassing the average sale price of apartments in the metropolitan area. The 14 districts in Gangbuk also show an average rent of 580 million to 590 million won, continuing the upward trend.
The average rent for apartments in the metropolitan area is reported to be between 450 million and 460 million won, while the national average ranges from 320 million to 330 million won.
Industry experts attribute the simultaneous rise in sale and rental prices to a decrease in the number of upcoming housing units and a concentration of housing demand in the metropolitan area. The ongoing situation of supply not keeping pace with demand is exerting continuous upward pressure on prices.
Kim Hyo-sun, a senior real estate official at NH Nonghyup Bank, stated, "The continuous rise in average housing prices indicates that it is not just specific price ranges that are increasing, but the overall price level in the market is rising as well." She added, "While the temporary suspension of capital gains tax has led to transactions in the mid to low price range, there has been an increase in cases where properties are sold at prices higher than previous transactions."
She further noted, "Despite various regulations, the strength of the housing market, including rentals, continues. Sellers, anticipating further price increases, are reluctant to list properties at lower prices, contributing to the ongoing upward trend in prices."
Market analysis suggests that the combination of supply shortages and expectations of further price increases is leading sellers to maintain their asking prices. As long as this expectation of price increases persists, both the sales and rental markets are likely to continue at elevated price levels for the foreseeable future.
* This article has been translated by AI.
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