Seoul: The average price of apartment units in Seoul changing hands has surpassed 1.4 billion won (US$1.01 million) for the first time ever, data showed Sunday.
According to Yonhap News Agency, the data compiled by KB Kookmin Bank revealed that the average price of apartment units sold in Seoul since the beginning of this month came to 1.41 billion won, marking an increase of 1.28 percent from a year earlier. This follows the previous milestone of 1.3 billion won reached in April, indicating a continued upward trend in the city's real estate market.
The data also highlighted significant regional differences within Seoul. The average price in the city's 14 northern districts stood at 1.01 trillion won, while the 11 southern districts recorded an average of 1.76 billion won. This disparity underscores a widening price gap between high-end and lower-priced homes.
The nationwide apartment price quintile ratio hit 12.0 in July, the highest since monthly tracking began in December 2008. Seoul's ratio reached a record 6.5, marking the greatest price polarization on record. This ratio compares the average price of the top 20 percent of apartments with that of the bottom 20 percent.
Despite these rising prices, Seoul's apartment price outlook index fell to 98.0 in July from the previous month's 133.9, representing the largest monthly drop since April 2013. It also marks the first time that the index has fallen below 100, indicating that more respondents expect prices to decline.
The decline in the index is, at least in part, attributed to the government's tighter lending rules implemented in June. These rules capped mortgage loans in the capital region at 600 million won in an effort to curb surging household debt and housing prices, officials said.