The average sale price of apartments in Seoul has reportedly surpassed 1.4 billion won for the first time, based on KB Real Estate market data.
According to the nationwide housing price trend announcement by KB Kookmin Bank, a private market survey institution, the average sale price of apartments in Seoul was recorded at 1.40572 billion won as of July 14, marking a 1.28% increase from the previous month.
Having recorded 1.32965 billion won in April, marking the first time it surpassed 1.3 billion won, the average sale price of apartments in Seoul has crossed the 1.4 billion won mark in just three months.
In Seoul, the average sale prices in the 14 districts of the northern area and 11 districts of the southern area were reported at 1.00364 billion won and 1.76410 billion won, respectively.
In terms of average sale prices in the northern area, it has exceeded 1 billion won again for the first time in 2 years and 8 months since November 2022 (1.00642 billion won).
However, the increase, which rose by 1.43% last month to reflect the highest growth rate since September 2021 (1.69%), has slightly diminished.
Meanwhile, the sales price outlook index for Seoul this month is at 98.0, a decrease of 35.9 points from last month (133.9). This marks the largest monthly drop since the survey began in April 2013, with this month's figure falling below 100, thus flipping to a "downward outlook."
The KB Real Estate price outlook index quantifies the expected rise or fall in local dwelling prices through a sample survey of real estate agencies nationwide. The higher the number exceeds 100, the greater the expected price increase, and conversely, if it is below 100, it indicates a greater number of expected price decreases.
It appears that the government's announcement of the household debt measures on June 27, which included limiting mortgage loans in the metropolitan area to 600 million won, has had an impact.
Incheon and Gyeonggi also saw their indices fall below 100, at 94.6 and 96.9, respectively.
Among the five major cities (Daejeon, Daegu, Ulsan, Busan, and Gwangju), Ulsan (117.4) was the only city where the proportion of expected price increases exceeded the baseline of 100.
The average sale price and jeonse price of apartments nationwide increased by 0.21% and 0.13%, respectively, compared to the previous month.
In the metropolitan area's jeonse prices, there was a 0.15% rise, marking the 24th consecutive month of increase. The jeonse prices of apartments in the five major cities and other regions also showed a rise this month, increasing by 0.04% and 0.02%, respectively.
As the phenomenon of "one strong property" intensifies due to lending restrictions, the fifth quintile ratio of nationwide apartment sales has reached 12.0, the highest since the monthly survey began in December 2008.
The fifth quintile ratio divides dwellings by price into five segments, with the average price of the top 20% (fifth quintile) being divided by the average price of the bottom 20% (first quintile). This indicates the price gap between high-priced and low-priced dwellings, with a higher ratio signifying greater polarization.
The fifth quintile ratio for apartments in Seoul is 6.5, also hitting a record high. This means that the sale prices of the top 20% of apartments are 12 times, and in Seoul, 6.5 times, higher than those of the bottom 20%.