Apartment Price Bubble Keeps Inflating
18 August, 2021
The housing market is growing volatile as the average apartment price in Seoul surpassed W1.1 billion even in government statistics and in the entire capital region W700 million (US$1=W1,176).
According to the Korea Real Estate Board on Tuesday, the average price of apartments in Seoul was W1.19 billion in July, an all-time high and up a whopping W181.17 million from just a month earlier. Across the entire capital region, the average was W721.26 million, a jump over W100 million in just a month.
But the rapid increase was partly due to a drastic increase in samples used in the latest survey by KREB. Until recently, it had been criticized for failing to properly reflect the market because the sample size was too small and its estimates were always much lower than actual figures.
Now KREB has doubled samples from 17,190 households to 35,000, which led to sharp increases in the average, which now more or less dovetails with KB Kookmin Bank's W1.16 billion in Seoul and W724.06 million in the capital area.
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