It has been proven once again that Seoul apartments are safe assets while recording high returns as a means of investment. Despite the big and small ups and downs over the past 36 years, the long-term trend is upward. According to the KB Real Estate apartment sale price change rate on the 18th, apartments in Seoul have risen at an average annual rate of 6.7% for 36 years from 1987 to last year. This exceeds the national average apartment sales price increase rate (5.8%). If you bought an apartment in Seoul in January 1987, it is 654.9% (about 6.5 times) as of June this year.
Apartment prices in Seoul show a steep trend when rising and a gentle phase when falling.
Looking at the statistics for the past 36 years, there have been 10 cases in which the price has decreased compared to the end of the previous year, but the rate of decline has all been less than 5%, except for 1998 (-14.6%) during the Asian financial crisis. Even last year, the most recent period of decline, the rate of decline was only 2.96%. Of the 26 peak years, 10 were double-digit growth years.
This year, the decline has narrowed and the price seems to be bottoming out.
In fact, the market atmosphere is also improving significantly. ‘Cheongnyangni Lotte Castle Hairuche’ in Dongdaemun-gu, Seoul, which subscribed this month, recorded an average competition rate of 242 to 1 in the first place. This is the highest competition rate in the country this year. Transactions are also increasing. According to the Korea Real Estate Agency, there were 13,373 apartment sales in Seoul from January to May this year. This is 87% of last year’s total transaction volume (15,384 cases) and an increase of 135% compared to the same period last year.
An official from Real Estate Info said, “Seoul is a nationwide market, and even if there are price entry barriers, it is possible to maintain house prices stably because consumers with money eventually find them.”
Reporter Park Cheol-hong [email protected]
2023-07-18 11:39:00
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