‘How are we supposed to come up with 800 million won right now?’ A sigh ... Small apartments have become out of reach: 1.8 billion→2.6 billion won; 1.5 billion→over 2 billion won

[The Financial News] # In Gireum-dong, Seongbuk-gu, a Lotte Castle Classia apartment with 59 square meters of exclusive area (25 pyeong) sold for 1.27 billion won in 2021, when home prices were surging, setting a record for the highest price for the same unit type in the area. In September this year, the same unit type in the same complex changed hands for 1.59 billion won. That means buyers now have to pay 300 million won more than during the boom to buy a home of their own.■ Small apartments rose 12% as large ones gained 1%An analysis by The Financial News on the 12th of average transaction prices for Seoul apartments by size, using data from KB Real Estate, found that prices have risen more sharply for smaller units so far this year.
Looking at average transaction price increases by floor area from January to September this year, small apartments with up to 60 square meters of exclusive area led the way, rising 12.9%. Next were small-to-medium apartments with more than 60 and up to 85 square meters, which rose 7.3%. By contrast, medium-sized apartments (more than 85 and up to 102 square meters) rose 3.1%, medium-to-large apartments (more than 102 and up to 135 square meters) rose 4.6%, and large apartments (more than 135 square meters) rose 1.3%.
Average transaction prices for small and small-to-medium apartments have also reached levels that are hard to compare with those during the housing boom of 2021–22. As of September, the average price of a small-to-medium apartment in Seoul was 1.58455 billion won, close to 1.6 billion won. The average price of a small apartment also rose by more than 120 million won, from 956.13 million won in January to 1.07942 billion won in September, nearing 1.1 billion won.
■ A 25-pyeong apartment that cost 1.8 billion won now costs 2.6 billionLooking at individual complexes, the highest actual sale price in 2021 for a 59-square-meter unit at Acro Riverheim in Heukseok-dong, Dongjak-gu, was 1.81 billion won. This year, the highest actual sale price for the same unit type in the complex was 2.66 billion won.
In Mapo-gu, the highest actual sale price in 2021 for a 59-square-meter unit was 1.7 billion won, at Mapo Prestige Xi in Yeomni-dong. This year, the highest sale price was 2.4 billion won. The price of a small apartment that cost 1.7 billion won has risen by 700 million won in five years.
Godeok Gracium in Godeok-dong, a leading small-apartment complex in Gangdong-gu, also stayed below 1.6 billion won during the previous boom, with a price of 1.53 billion won. This year, however, it has reached 2.185 billion won, surpassing the 2-billion-won mark.
The situation is similar in outlying areas. A small apartment at e-Pyeonhansesang Seoul National University Entrance, a leading complex in Gwanak-gu, set a record high of 1.2 billion won in 2021. This year, a sale went through at 1.45 billion won, up 250 million won.
DMC Central Xi, a leading complex in Eunpyeong-gu, also had a highest sale price of 1.35403 billion won in 2021, but this year the price reached 1.595 billion won, clearing the 1.5-billion-won mark. The highest price for a 59-square-meter unit at Sagajeong Central IPark in Jungnang-gu also rose from 1.135 billion won in 2021 to 1.35 billion won this year.
Kim Deok-rye, director of the Housing Industry Research Institute, said, “In particular, instability in the rental market is driving up prices for smaller, cheaper apartments.” Kim Jun-hyeong, a professor at Myongji University, said, “This is a phenomenon being driven by lending restrictions, a shortage of supply, and instability in the jeonse and monthly rental markets,” adding, “Housing stability for ordinary people should be the goal of housing policy.”
[email protected] Lee Jong-bae, Jeong Gyeong-su Reporter