Affordable Apartments Vanish from Seoul
29 August, 2020
The amount of apartments in Seoul costing less than W600 million, which is considered mid-priced, has plummeted by half, making the imagine home ownership in the capital an a lot more distant dream for most (US$1=W1,185).
In late 2017, 57.5 percent of apartments in Seoul or 713,573 cost a lower amount than W600 million, according to property information service Real Estate 114. But by August this year the proportion had fallen to only W26.4 percent or 328,168.
The W600 million threshold has been set by the Korea Housing Finance Corporation to calculate the price of an apartment that qualifies for low-interest housing loans for maried people whose combined annual wage is less than W70 million.
The costs of low to mid-price apartments are skyrocketing exponentially because of the short supply.
According to KB Kookmin Bank, the common price of apartments in underneath price range in the administrative centre surged 37.8 percent in comparison to 2 yrs ago to W430 million. On the other hand, apartment prices in the most notable range rose only 21.5 percent typically to W1.88 billion.
As of this month, only 2.8 percent of most apartments in the administrative centre cost less than W300 million.
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