Capital Region Recovers 92.2% of Previous Peak
Last year, the average selling price of apartments in Seoul increased, recovering to 99% of the peak levels seen in 2021.
According to the real estate research firm Real Today on the 27th, the average selling price of apartments in Seoul last year was 38,613,000 KRW per 3.3 square meters, up 6.9% from the previous year. This is 99.4% of the previous peak in 2021 (38,855,000 KRW).
Apartment complexes viewed from Namsan, Seoul. /News1
Though house prices in Seoul fell consecutively in 2022 (37,382,000 KRW) and 2023 (36,135,000 KRW) after 2021, last year saw a 6.9% increase from the previous year, recovering to the previous peak levels.
According to data from the Korea Real Estate Board on apartment price trends, apartment prices in Seoul began rising in the fourth week of March last year and continued to rise for 40 consecutive weeks until the fourth week of December. However, by the last week of December, the prices had stabilized, showing no change (0.00%) compared to the previous week.
The selling prices of apartments in the capital region also rose by 4.5% compared to the previous year. Last year’s average price per 3.3 square meters was 23,199,000 KRW, which is 92.2% of the 2021 level (25,154,000 KRW).
Real Today explained that the increase in Seoul apartment prices last year was influenced by a heightened preference for newly built apartments less than five years old. As of December last year, the increase rate for such new apartments in Seoul was 7.8% compared to January of the same year.
A Real Today representative stated, “The rise in prices for new apartments in Seoul led this trend, and such warmth spread to the capital region.”
Meanwhile, house prices in provincial areas, excluding the capital region, continued to decline. The selling price of apartments in local regions fell 6.8%, from 13,001,000 KRW per 3.3 square meters in 2021 to 9,598,000 KRW in 2022.