Seoul Apartment Prices Surge, Small Units Top 1 Billion Won

An aerial view shows apartment complexes and residential area in Seoul. (REUTERS)

As housing prices continue to soar, the era has arrived when purchasing a 59㎡ apartment in Seoul requires more than 1.2 billion won.

On June 12, a real estate evaluation firm, Real House, announced that according to data compiled from the subscription system, the average selling price for private apartments in Seoul with a 59㎡ exclusive area last month was 1.23332 billion won, marking a 23.9% increase from the same period last year (995.65 million won).

The selling price for 59㎡ units in Seoul outpaced the increase rate of the 84㎡ units (1.61668 billion won), known as the “national standard size,” which rose by 19.3%, indicating a relatively faster price hike.

With demand for an apartment in popular areas of Seoul growing, and amid continuous price increases for apartments, small housing units are gaining popularity, particularly among single and two-person households who find the 84㎡ units burdensome.

During the same period, the national average selling price rose by 9.1% from 444.20 million won to 484.73 million won. By region, the metropolitan area (761.19 million won) increased by 13.5%, while the five major metropolitan cities and Sejong (478.81 million won) rose by 1.7%. Provincial areas formed an average selling price of 351.43 million won, up by 7.1%.

The gap in apartment supply between Seoul and local regions appears to be further exacerbating market polarization. Last month, the total supply of private apartments nationwide was 5,690 units, a 61.9% decrease from the same period last year (14,938 units). Out of the 17 cities and provinces nationwide, 10, including Incheon, Ulsan, and Sejong, reported zero supply.

Busan (758 units) had the highest supply among non-metropolitan areas, followed by Daegu (540 units), South Jeolla Province (208 units), North Gyeongsang Province (90 units), and Gwangju (81 units).

A representative from Real House stated, “A clever solution must be devised to expand supply and stabilize selling prices so that small apartments do not reach prices that are beyond the reach of ordinary citizens.”