Real Estate Price, The Highest Level for Last 11 Years

It was known that the third quarter (July – September) recorded the highest increasing rate of real estate base on quarter for last 11 years.

At 31st, Ministry of Construction & Transportation announced that average price of real estate at the end of September increased 3.33% compared to the end of June. In quarterly increasing rate, is was the highest level since the second quarter of 1991 (3.39%), and it was more then twice than annual increasing rate of last year (1.32%).

According to the geographical classification, Kangnam of Seoul recorded highest level of 8.61% in whole of the country. The next highest ones were Osan-si (8.48%), Whasung-si (8.04%), Songpa-gu of Seoul (7.97%), Dungyang-gu of Goyang-si in Kyunggi (7.88%), Se-gu of Inchun (7.85%), etc.

The increase of real estate of Kangnam-gu of Seoul is analyzed that the redevelopment of apartments caused housing price, and demand for commercial and business purposes increased rent price. In case of Osan-si, the development of housing site in Sekyo, Kuldong and Suchung, and the development of station area of High Speed Train caused the increase of real estate.

According to the classification of city, Seoul Metropolitan area recorded highest increasing level; Seoul (5.44%0 and Inchun (6.17%). Busan (0.67%), Daegu (0.42%), Kwangju (0.44%), Daejun (0.68%), Usan (0.42%) etc. Other major cities and councils increased less comparatively.

In according to the purposed zone, residential zone (3.65%) and commercial zone (3.35%) shoed highest level in Seoul metropolitan area. Agricultural zone increased less comparatively.

Lee Moon-kee, Secretary for real Estate System of Ministry of Construction & Transportation forecasted “Low interest rate and many development plans caused the increase of real estate.” And added “However, the price will be stabilized as the government policy for housing market began to show effect from October.”

Ki-Jeong Ko koh@donga.com