Average Apartment Price found in Capital Place Nears W700 Million
01 June, 2021
The common apartment price in the Seoul metropolitan area has risen to almost W700 million during the last year (US$1=W1,110).
Relating to KB Kookmin Lender on Monday, the average sale price of a flat in Seoul and neighboring Gyeonggi Province in May stands at W696.5 million, up by W9.75 million from the prior month. The common price surpassed W600 million for the very first time previous October and took simply seven months to rise another W100 million.
The curve gets steeper. It took 2 yrs and one month to rise from W400 million in October 2016 to W500 million in November 2018 and one year and 11 weeks to W600 million in October 2020.
The view from Mt. Nam in Seoul on Mon /Yonhap
In Seoul alone, the common apartment price in May soared more than W200 billion in the last year from W915 million to W1.12 billion.
Jeonse or Korean-design deposit leases as well surged 26 percent to W614.5 million typically in Seoul and W344.4 million in Gyeonggi Province.
Surging prices have managed to get even more hard for some ordinary people to get their have homes. KB calculated the purchase price to profits ratio (PIR) and discovered that it requires 17.8 years for children in the upper 40 to 60 percent of the income bracket to be able to afford a mid-priced apartment in Seoul.
In December of this past year, the PIR was 16.8 years, and in May of 2017, when President Moon Jae-in took office, 10.9 years.
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