Seoul’s home prices expected to continue on upward spiral

11-Dec-2019 Intellasia | KoreaTimes | 6:02 AM Print This Post

Prices of apartments in Seoul are expected to rise for the sixth consecutive year in 2019, the longest winning streak in history, due to a mixture of supply shortage and ample liquidity in the market, experts said Tuesday.

The continued rise, they said, indicates that the government’s series of anti-speculation measures through heavier taxes and stricter rules on reconstruction has caused a reverse effect by controlling the supply of homes in the capital and surrounding area.

According to data from KB Kookmin Bank, the price of Seoul’s apartments from January through November rose 1.82 percent from the same period a year earlier.

Given that the price has been rising in December, it is highly probable that the price will increase for 2019 from a year ago. This will be the first time the prices of Seoul’s apartments have risen for six consecutive years, since related data began being compiled in 1986.

On a yearly basis, the price of Seoul’s apartments have been on the rise for five consecutive years from 2014 ? 1.09 percent in 2014, 5.56 percent in 2015, 4.22 percent in 2016, 5.28 percent in 2017 and 13.56 percent in 2018.

The prices of apartments in the area surrounding Seoul also rose for five consecutive months since July.

The rise has also continued on a yearly basis for five consecutive years.

Compared to the end of the previous year, prices rose 1.81 percent in 2014, 5.61 percent in 2015, 2.89 percent in 2016, 2.77 percent in 2017 and 6.76 percent in 2018.

This is seen as being due to people increasingly seeking homes in areas neighbouring Seoul, due to the city’s soaring housing costs.


Category: Korea

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