More than 1.16 million people left Seoul last year. With the rise in Seoul apartment prices hitting the highest level in 19 years, demand that could not bear the housing cost burden appears to have shifted to surrounding areas such as Gyeonggi Province.
According to domestic migration statistics from the Korean Statistical Information Service (KOSIS) on Jan. 1, 1,161,887 people moved out of Seoul to other regions from January to November last year. Of these, about 20% moved to Gyeonggi Province, the highest share among the 16 cities and provinces.
A sharp increase in Seoul home prices is cited as a major reason for leaving the city. According to the Korea Real Estate Board (REB), as of the 22nd of last month, Seoul apartment prices were up 8.48% this year, the highest since 2006.
The price gap between Seoul and Gyeonggi Province also reached a record high. As of November last year, the average sale price of an apartment in Seoul was 1.2759 billion won. During the same period, the average sale price of an apartment in Gyeonggi Province was 550.3 million won. The price difference between the two regions was 725.6 million won, the largest since related statistics were compiled.
This gap led to changes in actual residence moves and purchasing behavior. According to the Korea Real Estate Board (REB)'s apartment sale transaction status by buyer residence, of the 136,943 apartment sale transactions concluded in Gyeonggi Province from January to October last year, 18,218 were purchased by Seoul residents, accounting for 13.3% of the total.
The real estate industry expects price pressures to persist for the time being amid limited supply of Seoul apartments. In addition, as the expansion of the greater Seoul area's transportation network improves access to living in Gyeonggi Province, the "escape from Seoul" trend for home purchases is expected to continue for the time being.