[Real Estate] Seoul Apartment Price Increases Are the Trend

*This content was translated by AI.

Seoul apartments, a key indicator of the real estate market, have been steadily rising.

However, opinions suggest that redevelopment projects are the main culprit behind the real estate surge, with some pointing specifically to sales prices. Recently, sales prices for redevelopment projects in Seoul have continuously increased.

According to data from Real Estate 114, national apartment transaction prices rose by 0.19% in the first week of July. Seoul saw a 0.21% increase, while Gyeonggi and Incheon rose by 0.24%, bringing the capital region up by 0.22%. In non-capital regions, the five major metropolitan cities recorded a 0.05% rise, and other local areas saw a 0.06% increase. Based on the 17th provinces and cities nationwide, 14 regions showed an increase.

The monthly national fluctuation rate for June was 0.57%, marking a larger increase following April's 0.49% and May's 0.53%.

National apartment rental prices rose by 0.12%. Seoul increased by 0.15%, and Gyeonggi and Incheon rose by 0.14%, bringing the capital region up by 0.15%. The five major metropolitan cities and other local areas rose by 0.02% and 0.05%, respectively.

Meanwhile, in line with the real estate surge, the government is preparing a tax reform on real estate. The OECD has recommended raising holding taxes instead of transaction taxes, and the Lee Jae-myung administration is also focusing on this area.

Real estate expert A stated, "It seems the government is misreading the real estate market. The recent rise in real estate prices must be traced back to sales prices." He added, "The highest sales price for a 84㎡ (national standard) unit in Noryangjin New Town has reached the 2.7 billion won range, driven by rising construction costs. Although the Lee Jae-myung government claims to pursue real estate stability, it is unclear whether they truly desire such stability."

<© STARNEWS. All rights reserved. No reproduction or redistribution allowed.>

*This content was translated by AI.