August Land Prices See Highest Rise in a Year

Real estate prices in August posted their highest rise in a year, with expectations of a housing rebound also expanding with the release of property statistics, the Land, Transportation and Maritime Affairs Ministry said yesterday.

Real estate prices rose 0.36 percent in August from the previous month, the highest growth since the same month last year (0.42 percent).

Seoul saw an increase of 0.63 percent, Incheon 0.41 percent, and Gyeonggi Province 0.4 percent in August, higher than the national average. In the Seoul metropolitan area, housing prices near the development area for Bogeumjari apartments and the New Town Project soared.

Seoul’s Seongdong district witnessed the largest jump in property prices in August with 0.8 percent because of expectations for the New Town project and the extension of the Bundang subway line.

Hanam in Gyeonggi Province, which is developing an area for “bogeumjari (low cost)” apartments, saw housing inflation of 0.77 percent from the previous month, the second-biggest jump.

Seoul’s Gangnam district also saw a jump of 0.73 percent in property prices due to the construction of the low cost apartments and the planned redevelopment of Guryong village.

Mapo district saw a rise of 0.73 percent due to a new town project and Gangbuk district 0.72 percent because of the development of the Mia neighborhood as a balanced development district.

According to this month`s consumer trends released by the Bank of Korea, the consumer survey index was 112 this month, up two points from August and the highest since the bank began compiling the statistic in September last year. The index for the value prospects for homes and stores has grown since March this year (84).

The central bank said expectations are growing that housing prices will rise as mortgage loans increase and property prices continue to rise.

aryssong@donga.com