As prices for mid- to low-priced apartments in Seoul rose and prices for ultra-high-priced apartments fell, indicators showing polarization eased somewhat in March.
According to KB Real Estate on the 12th, the quintile ratio, an indicator of price polarization, was 6.76 in March. This was a slight drop from the previous month (6.87), and the quintile ratio for Seoul apartments fell for the second straight month after hitting a record high of 6.92 in January.
The quintile ratio is the value obtained by dividing the average price of the top 20% (fifth quintile) of dwellings by the average price of the bottom 20% (first quintile) when dwellings are divided into five groups by price. A higher value means polarization is more severe.
Specifically, in March, the average apartment price for the top 20% (fifth quintile) in Seoul was 3.46065 billion won. That was down 10.55 million won (0.3%) from February (3.47120 billion won). It was the first month-over-month decline in the average price of Seoul apartments in the fifth quintile in 2 years and 1 month since February 2024 (2.46381 billion won).
By contrast, last month the average apartment price for the bottom 20% (first quintile) in Seoul was 511.63 million won, up 6.29 million won (1.2%) from the previous month (505.34 million won).
Analysts say prices fell as transactions centered on urgent sales occurred in high-priced large apartment complexes amid loan limits being reduced to 400 million won and 200 million won, respectively, when dwelling prices exceed 1.5 billion won and 2.5 billion won, and ahead of the end of the capital gains tax heavy taxation deferral for multiple-home owners on May 9.
In contrast, for apartments priced at 1.5 billion won or less, where loans of the full 600 million won are available, end users are flocking, listings are scarce, and a "leveling to 1.5 billion won" phenomenon continues.
Based on KB market prices, the average sale price of apartments in the 14 districts north of the Han River last month was 1.11831 billion won, topping 1.1 billion won for the first time. In addition, the median sale price of Seoul apartments and the sale price of small to mid-sized units (exclusive area over 60㎡ and up to 85㎡) reached 1.2 billion won and 1.51022 billion won, respectively, entering the 1.2 billion won and 1.5 billion won ranges for the first time.