This year, the average sales price of private apartments sold nationwide has exceeded 20 million won per 3.3 square meters. When converted to the sales price of an 84 square meter apartment, known as the standard size, it has increased by more than 90 million won compared to last year.

A large square meter property notice posted at a licensed real estate office in downtown Seoul. /Courtesy of News1

According to Real Estate R114 and the promotional company The PR, the average sales price of private apartments sold nationwide this year (based on the first week of January to the second week of December) is recorded at 20.65 million won per 3.3 square meters. This is an increase of 2.65 million won (14.7%) compared to the average sales price of last year (18 million won). When converted to the standard size of 84 square meters, this amounts to an increase of 90.1 million won.

The main reason for this increase in sales prices is attributed to the rise in construction and labor costs. The national construction cost index provided by the Korea Construction Technology Institute stood at 130.45 as of September, marking the highest level since the index was established on a monthly basis. The construction cost index quantifies the price variations of direct construction costs for materials, labor, equipment, and so on, using 2020 as the base year at 100 to assess increases and decreases. In addition, the average wage of construction workers has risen approximately 4% to 6% annually: by 4.7% in 2020, 3.9% in 2021, 5.5% in 2022, and 6.7% in 2023.