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Apartment prices for average Koreans have soared since 2017

This photo taken July 18, 2019, shows an apartment complex in Seoul. (Yonhap)
This photo taken July 18, 2019, shows an apartment complex in Seoul. (Yonhap)
The prices of small to midsized apartments have increased precipitously in recent years, according to data from the office of Rep. Kim Sang-hoon. The lawmaker’s office received the data from the Korea Appraisal Board.

Small to midsized apartments, measuring 40 to 62.8 square meters, have increased in price 65.9 percent, posting 245.2 million won on average, from May 2017 to July this year, the data showed.

The lawmaker’s office classified apartments into four categories: Small apartments measure less than 40 square meters, small to midsized apartments measure 40-62.8-square meters, midsized to large apartments measure between 95.9 square meters and 135 square meters, and large apartments are 135 square meters and up.

Small to midsized apartments are considered the most popular type of property among average citizens and those who have just graduated from university, as they are relatively affordable.

Midsized apartments saw prices jump 61.5 percent to 832 million won, while midsized to large apartments grew 56.7 percent more expensive to 11.5 billion won on average during the cited period. The smallest property type saw a 34 percent increase in price to 350 million won on average.

The lawmaker said the current government’s real estate policies had gone awry and caused hikes in housing prices.

“For around three years, it has become much harder to buy a house and live in Seoul,” said Kim. “The ill-designed real estate policies have caused chaos and a real estate rush, driving up living costs for average citizens.”

The Moon Jae-in administration, which was launched in May 2017, has implemented a series of real estate rules to cool down soaring housing prices, including strict mortgage standards and tough tax rules, but to no avail so far.

By Kim Young-won (wone0102@heraldcorp.com)
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