Seoul’s median housing prices now rival Washington, D.C. and New York

Signs posted on Oct. 8 indicate housing prices for various apartment units inside a large apartment tower in the Gangnam District of Seoul. (Yonhap News)

Real estate costs in the South Korean capital exceed those of Tokyo

Seoul’s housing prices are more expensive than Tokyo’s and similar to those in New York and Washington, D.C., a study reports. According to findings on Nov. 19 from a National Assembly Research Service analysis commissioned by lawmaker Park Kwang-on, the Democratic Party’s secretary on the National Assembly Strategy and Finance Committee, the median housing price in Seoul was 434.85 million won (US$396,600) as of late 2016, the most expensive in South Korea.

Housing costs in Seoul were around 123 million won (US$112,000) more expensive than [the median] for Tokyo at 311.35 million won (US$284,000). The level was similar to those of New York City (443.4 million won/US$404,400) and Washington, DC (438.83 million won/US$400,300). The median housing price, referring to the centermost value when residential selling prices are ranked in order for a particular region, is considered a suitable indicator in assessing housing price trends. The median housing price in Seoul was lower than those in Hong Kong (774.85 million won/US$706,700), London (644.72 million won/US$588,000), San Francisco (931.63 million won/US$849,700), and Los Angeles (662.31 million won/US$604,100).

The average household was also found to take 9.2 years to earn enough to afford a home in Seoul, as calculated by the time needed to raise the equivalent of the median housing price in Seoul based on the 47.28 million won (US$43,120) average annual income for a two-person or larger household in a non-agricultural city without any other forms of spending. The period was roughly twice as long as the 4.7 years required for a home in Tokyo, and over three years longer than the 5.7 years needed for a home in New York City.

The average national median housing price was 228.53 million won (US$208,400). The median housing price in Seoul was 1.9 times higher than the national average. By region, the median price was 257.39 million won (US$234,800) for Gyeonggi Province, 220.55 million won (US$201,200) for Sejong, 217.30 million won (US$198,200) for Daegu, 214.99 million won (US$196,100) for Ulsan, 195.11 million won (US$178,000) for Busan, and 188.5 million won (US$171,900) for Incheon. The lowest level nationwide was in South Jeolla Province at 79.31 million won (US$72,300).

By Kim Kyu-nam, staff reporter

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