Apartment price gap between local and metropolitan areas widens < Construction/Real Estate < Economy < Text of article

The price gap between apartments in Ulsan and other provinces and metropolitan areas is widening again in the second half of this year. There is an analysis that the price increase of apartments in the metropolitan area is significantly exceeding that of local apartments, with expensive apartments leading the price rise.

Zigbang, a real estate platform, announced on the 18th that as a result of analyzing the trend of the gap in apartment prices across the country by introducing the Gini coefficient, which quantifies the degree of inequality, into the housing market, the apartment Gini coefficient recorded 0.441p at the end of last month.

The apartment Gini coefficient ranges from 0 to 1, meaning that the closer it is to 1, the greater the relative price gap between apartments. The apartment Gini coefficient recorded 0.462p in October 2020 and then steadily declined to 0.426p in December of last year, but it appears to be rising along with the rebound in apartment prices this year.

This phenomenon is also confirmed in the Korea Real Estate Agency’s sales price statistics.

The average apartment sale price in Seoul has been rising for four months after hitting a low from 1,133.7 million won in September last year to 1,022.98 million won in April this year. The average transaction price in August was 1,039.78 million won, a recovery of 91.7% compared to September last year.

On the other hand, Ulsan hit bottom from 311.96 million won in September last year to 277.24 million won in June this year, and has been rising for two months to 278.18 million won in August. However, compared to September last year, the sales price is only 87.8%.

During this period, the average apartment sales price nationwide showed an 88.6% recovery, from 502.16 million won to 445.16 million won.

It was found that the widening gap in apartment prices was because the speed of the rebound in apartment prices differed by region.

A Zigbang official said, “Major regions where apartment prices are expensive, such as Seoul, Gyeonggi, and Sejong, are rising faster and leading the rebound, so the relative gap in apartment prices by region is increasing.” “Due to the impact of the easing of financial regulations, such as the Zari Loan, the waiting demand for apartments accumulated during last year’s recession was concentrated more toward apartments in the metropolitan area,” he analyzed.

Reporter Lee Chun-bong [email protected]