Home prices in Korea rise 1.5% in 2017, doubling the gain in 2016

2018.01.02 15:12:58 | 2018.01.02 15:59:44

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Housing prices in South Korea appreciated twice faster than a year ago last year despite a slew of government actions to cool the heated housing market.

According to data released by the Korea Appraisal Board on Monday, nationwide housing prices gained 1.48 percent on average last year against a year-ago period, compared with a 0.71 percent rise in 2016.

The country’s new administrative city Sejong saw the biggest year-on-year gain of 4.29 percent, followed by the capital city Seoul with 3.64 percent growth rate. The two cities witnessed the steepest gains although the government had initiated measures to contain the runaway home prices in August last year by categorizing them as speculative zones.

Housing prices in Gyeonggi Province rose 1.67 percent in 2017 from the previous year, and those of Incheon grew 1.42 percent. Home prices in Gangwon Province gained 2.4 percent on year, driven by the rising demand due to the upcoming Pyeongchang Winter Olympics. On the other hand, housing prices in South Gyeongsang Province fell 1.62 percent, Ulsan slipped 1.08 percent, North Gyeongsang Province 0.9 percent, South Chungcheong Province 0.53 percent and North Chungcheong Province 0.36 percent, hit by the massive layoffs in shipping and shipbuilding industries and supply increases.

By housing type, the price of single detached homes rose 2.67 percent on year in 2017, apartments 1.08 percent and row houses 1.07 percent.

By Lee Ji-yong and Choi Mira

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