Single apartment in Seoul worth 3-4 in provinces: survey

The gap in real estate prices between Seoul and the provinces is widening, with a single apartment in Seoul going for the same amount as three to four in provincial areas.

Online real estate agency Doctor Apartment said Wednesday that one apartment in the lucrative Seoul district of Gangnam can match the value of 25 apartments in Boseong, South Jeolla Province.

A survey by the agency measured the sale prices of apartments nationwide by pyeong, a traditional Korean unit of area measurement equivalent to 3.3 square meters. The average apartment in Seoul went for 18.2 million won (16,207 U.S. dollars) per 3.3 square meters, 3.65 times the average of 4.99 million won (4,444 dollars) in the country’s five other metropolitan cities as well as smaller areas. The average price per 3.3 meters in the Seoul metropolitan area was 12.54 million (11,167 dollars), 2.51 times that of provincial areas.

By region, Seoul had the most expensive real estate, followed by “new town” cities in the capital area with 13.1 million won (11,165 dollars), Gyeonggi Province 9.03 million won (8,041 dollars) and Incheon 7.99 million won (7,115 dollars). Among provincial areas outside of the capital, Busan ranked first with 6.17 million won (5,494 dollars), followed by Ulsan with 6.05 million won (5,387 dollars).

By district, Seoul’s Gangnam district topped the list at 33.37 million won (29,715 dollars) per 3.3 square meters, followed by the city of Gwacheon, Gyeonggi Province, with 28.97 million (25,797 dollars), Seoul’s Seocho district with 28.92 million won (22,654 dollars), Seoul’s Yongsan district with 25.44 million won (21,638 dollars), Gyeonggi’s Pangyo New Town with 24.2 million won (21,638 dollars), and Seoul’s Songpa district with 24.22 million won (21,567 dollars).

South Jeolla Province had the lowest home sale price per 3.3 square meters at 2.99 million won (2,663 dollars). That in Boseong County was the lowest at 1.33 million won (1,184 dollars), followed by Muju County in North Jeolla Province with 1.53 million won (1,362 dollars), Yeongam County in South Jeolla and Gochang County in North Jeolla at 1.63 million won (1, 451 dollars) each, and Boeun County in North Chungcheong Province with 1.64 million won (1,460 dollars).

Despite the wide gap in sales price between the Seoul metropolitan area and the provinces, the difference narrowed from last year due to rising sales prices in the provinces due to a supply shortage and conversion of rental houses to sales, as well as falling apartment prices in Seoul and vicinity.

The price gap between Seoul and provinces fell from 13.81 million won (12,297 dollars) per 3.3 square meters to 13.21 million won (11,763 dollars) year-on-year this month, down 600,000 won (534 dollars).

bright@donga.com