Seoul apartment 84㎡ vs 59㎡ price difference 170 million won... 30%↓ in one year

As the demand for small square footage in Seoul apartments increased due to strengthened lending regulations, the price difference between the medium-sized National Standard (84㎡) and small (59㎡) was found to have decreased to around 170 million won.

On the 9th, Real Today, a real estate research company, analyzed the actual transaction prices of the Ministry of Land, Infrastructure and Transport, and found that the average price of an 84㎡ exclusive apartment in Seoul in September this year was 1,301.1 million won, a difference of 168.94 million won from the average price of 59㎡ (1,132.16 million won).

Considering that the difference between 84㎡ (KRW 1,344.02 million) and 59㎡ (KRW 1,103.76 million) during the same period last year was KRW 240.26 million, the price difference has decreased by 29.7% in one year.

Compared to the price difference (417.02 million won) in February last year, when Seoul apartment prices began to rise, it decreased by 59.5%.

By region, in the case of the Gangnam 3 districts (Seocho, Gangnam, and Songpa), the price difference was calculated to be 424.45 million won in September last year, but decreased by 30.2% to 296.36 million won in September this year.

In Geumgwan-gu (Geumcheon, Gwanak, Guro), the price difference was 95.5 million won, a 30.9% decrease from 138.18 million won.

In the case of Nodogang (Nowon, Dobong, Gangbuk), it decreased by 26.7% (KRW 140.55 million → KRW 103.02 million).

In the Nodogang and Geumgwan-gu areas, you can change to a medium-sized unit by paying about 100 million won more for the price of a small unit.

Strengthening loan regulations is cited as the main reason for the narrowing of the price gap between medium-sized and small-sized apartments in the Seoul apartment market.

Through the 'Housing Market Stabilization Measures' announced on October 15 last year, the government maintained the existing housing mortgage loan limit of 600 million won for homes with a market value of 1.5 billion won or less, reduced it to 400 million won for homes with a market value of 1.5 billion won but less than 2.5 billion won, and 200 million won for more than 2.5 billion won.

From the perspective of actual consumers, it is interpreted that the preference for small-sized units that are accessible within the housing loan limit has increased over medium-sized units, which are relatively expensive.

Ja-min Koo, a researcher at Real Today, analyzed, “As more popular complexes require additional funds to purchase 84㎡, consumers with limited financial mobilization power are lowering their eyes to 59㎡ and supporting lower prices for small units.”

He continued, “Although the overall increase in apartment prices in Seoul is slowing, as financial conditions such as loan regulations change, 59㎡, which requires less financial burden, is considered a realistic alternative, and the preference for small areas is expected to continue for the time being.”