Average sale price of new apartments in Seoul exceeds 40 million won per 3.3 square meters

A person points his finger at an apartment building in Seoul on July 2. Yonhap News

The average sale price of new apartments in Seoul has exceeded 40 million won per 3.3 square meters for the first time. The price has risen by more than 10 million won in just one year due to steeply rising construction costs. The apartment sales market, including old houses, is also on the rise, as the price of newly built apartments is expected to rise further.

According to the data released by the Korea Housing and Urban Guarantee Corporation (HUG) on July 15, the average sale price per 3.3 square meters of apartments nationwide was 1.87 million, up 1.26 percent from the previous month. Compared to the same month last year, it rose 14.86 percent.

The average sale price per 3.3㎡ in Seoul reached 41.9 million won. This is the first time that the average sale price of apartments in Seoul announced by HUG has exceeded 40 million won per 3.3 square meters. The average sale price per 3.3 square meters in Seoul was 31.98 million won a year ago, but it rose 31 percent (9.92 million) in a year. The average sale price per 3.3 square meters in the Seoul metropolitan area rose 19.63 percent from 22.63 million won in June last year to 27.06 million won this June.

The sale price of new apartments in the five major metropolitan areas and Sejong fell from the previous month. At the end of last month, the average sales price per 3.3 square meters was 19.11 million, down 0.49 percent from the previous month. It was up 16.55 percent from the same month last year. The average sales price per 3.3 square meters in the rest of the country rose 11.35 percent year-on-year to 14.72 million won.

The sale price of new apartments is the average sale price of new apartment construction projects for which HUG issued a sales guarantee certificate during the 12 months immediately before the announcement. The rise in new apartment prices is due to the increase in construction costs as raw material prices, labor costs, and interest rates have risen. The increase was also influenced by Mapo Xi HILLSTATE La Cels in Mapo-gu, whose sale price exceeded 50 million won per 3.3 square meters last month, which is for the first time in northern Seoul last month.

The total number of new apartments nationwide last month was 14,291 units, which was similar to the same month last year (14,436 units). However, in other regions in the country, excluding the Seoul metropolitan area, the five major metropolitan cities, and Sejong, the number of new apartment construction projects plummeted due to concerns over unsold units due to rising prices.

The number of units sold in other regions was 2,886, down 40.3 percent from the same month last year (4,863 units).

The rise in the sale price of new apartments seems to lead to an overall rise in the housing market. The rise is particularly steep in Seoul. According to the data released by the Korea Real Estate Board, the national apartment sale price index rose 0.04 percent from the previous month, with Seoul apartments leading the way with a 0.56 percent increase. This is the largest increase in two years and nine months since October 2021 (0.83 percent).

※This article has undergone review by a professional translator after being translated by an AI translation tool.