The price gap between the most expensive and cheapest apartments in Korea has widened to the steepest level in eight years as demand for upscale housing remained robust regardless of government-led real estate clampdowns, data showed.

According to online property information provider Zigbang on Monday, the gap of average trading price of apartments in top and bottom value stretched to 14.2 times in the first half, jumping from 13.9 times in 2017 and 12.3 times in 2016. The spread is the biggest in eight years.

The price of apartments in the top 10 percent bracket started to surge in 2014 to hit 600 million won ($533,618) and pass 900 million won in 2017.

The price polarization accelerated on the surge in the price of apartments in the high-end bracket mainly propelled by skyrocketing demand for aged apartments in the designated redevelopment zones in the affluent Gangnam area of southern Seoul. The apartments that were built more than 30 years ago accounted for 3.5 percent in the top 10 percent bracket in 2011. They made up 14.3 percent in 2017.

The country’s housing price polarization is worse than its income inequality, according to data. Those in the top 10 percent bracket pocketed by 10.6 times higher income last year, compared to those in the bottom 10 percent.

By Kim Gang-rae and Lee Ha-yeon

[ⓒ Pulse by Maeil Business Newspaper & mk.co.kr, All rights reserved]