About 68% of the total market capitalization of dwellings in the country is concentrated in the metropolitan area, according to an analysis by the Bank of Korea. The market capitalization of dwellings in Seoul exceeded 2,300 trillion won.
On the 26th, the Bank of Korea held a forum titled "Tasks for balanced development, strategy through indicators" in the Bank of Korea's annex in Jung-gu, Seoul, and announced the main results of the regional dwellings market capitalization from 2011 to 2023, which was newly disclosed in January.
According to the Bank of Korea, the national market capitalization of dwellings stood at 6,839 trillion won at the end of 2023. Seoul had the largest share at 2,320 trillion won, followed by Gyeonggi (1,986 trillion won) and Busan (389 trillion won). The share of the metropolitan area, including Seoul and Gyeonggi, accounted for 67.7% of the total.
Most of the market capitalization of dwellings is concentrated in apartments. In all regions except Jeju, the proportion of apartments in the dwellings market capitalization was higher than that of non-apartment types, such as single-family, multi-family, and semi-detached dwellings. The national proportion of apartments was 76.3%, followed by single-family dwellings at 15.5% and multi-family and semi-detached dwellings at 8.2%.
The ratio of dwellings market capitalization to gross regional domestic product (GRDP) was highest in Sejong at 4.5 times as of 2023, followed by Seoul at 4.2 times and Daegu at 3.4 times. The national average was 2.8 times.
From 2015 to 2023, the growth rate of dwellings market capitalization was highest in Sejong (19.1%) and Jeju (10.9%). The growth in Sejong was attributed to the transfer of administrative agencies, while Jeju benefitted from a boom in tourism from 2015 to 2016. It was noted that from 2011 to 2023, the market capitalization of dwellings increased in the first half (2011–2015) centered around provincial areas, while in the second half (2017–2021), it was concentrated in the metropolitan area.
Meanwhile, the National Statistical Office announced that it has completed the development of a quarterly GRDP indicator that shows short-term regional economic fluctuations, and will disclose the first quarter figures on June 1. This is earlier than the previous practice of announcing provisional annual GRDP figures in December of the following year and final figures the year after.
An official from the Bank of Korea noted, "It is expected to be used for estimating the wealth effects from the rise in dwelling values and for calculating regional financial imbalance indicators, such as the ratio of household loans to regional dwellings market capitalization."