What’s Behind the Nearly 10% Surge in Seoul Apartment Market Cap?
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Synopsis
The recent surge in apartment prices in Seoul has resulted in a nearly 10% increase in market capitalization, raising questions about the future of housing in the city. As the government implements measures to curb prices and debts, the dynamics of the real estate market continue to evolve.
Key Takeaways
- Seoul's apartment market cap increased nearly 10% this year.
- Market value reached approximately 1,781 trillion won.
- Government implemented measures to control housing prices.
- Investor sentiment strengthened with tech partnerships.
- National apartment market growth was only 4.3%.
Seoul, Oct 3 (NationPress) The skyrocketing apartment prices in Seoul have resulted in a remarkable surge in the total market capitalization of the city’s residential properties, rising nearly 10 percent since last year, according to recent data released on Friday.
As of the end of September, the market value of apartments in the capital reached approximately 1,781 trillion won ($1.26 trillion), marking a 9.3 percent increase from 1,630 trillion won at the end of 2022, per a survey conducted by the real estate firm Real Estate R114, as reported by Yonhap news agency.
This growth significantly outstripped the overall national apartment market, which experienced a rise of about 4.3 percent to 4,141 trillion won during the same interval.
In response to soaring housing prices and escalating household debt, the government has implemented measures aimed at controlling the situation, including stricter lending regulations introduced on June 27 and initiatives to enhance housing supply.
After a period of stagnation, home prices have resumed their upward trend since last month, especially in the non-regulated areas of Seoul.
In regions outside of Seoul, the central administrative city of Sejong witnessed a 5.4 percent increase in apartment market capitalization, reaching 63.8 trillion won, while Gyeonggi Province, which encircles Seoul, observed a modest rise of 1.5 percent to around 1,179 trillion won, according to the data.
Meanwhile, South Korea’s stock market index surpassed 3,500 for the first time, as investors responded positively to news of business collaborations between OpenAI and leading chip manufacturers Samsung Electronics and SK hynix. The local currency also appreciated against the U.S. dollar.
Trading activity was robust, with a total volume of 394.92 million shares valued at 18.57 trillion won (approximately $13.25 billion), and the number of gaining stocks outweighed losing ones at 589 to 291 on Thursday.
Foreign investors acquired a net total of 3.14 trillion won in stocks, while retail and institutional investors sold 3.07 trillion won and 69 billion won worth of shares, respectively.
Investor confidence was further bolstered by reports that chip giants Samsung Electronics and SK hynix had signed letters of intent on Wednesday to supply memory chips for OpenAI’s data centers.
Point of View
It is crucial to maintain an unbiased perspective while reporting on the evolving real estate landscape in Seoul. The recent surge in apartment prices presents both opportunities and challenges, reflecting broader economic trends that require careful analysis and consideration from policymakers and stakeholders alike.
NationPress
03/10/2025
Frequently Asked Questions
What caused the increase in Seoul apartment prices?
The increase is attributed to rising demand, limited housing supply, and recent government measures aimed at controlling housing prices and household debt.
How does the apartment market in Seoul compare to the national market?
Seoul's apartment market growth of 9.3% significantly surpasses the nationwide increase of 4.3% during the same period.
What measures is the government taking to control housing prices?
The government has introduced tighter lending regulations and policies to enhance housing supply to help curb rising prices and household debt.
