Last month, the average sale price of the national standard size (84 square meters) apartments in Seoul approached 1.7 billion won, an increase of more than 280 million won compared to a year ago. Considering the government's restrictions on housing loans, one would need nearly 1.1 billion won in cash to apply for the national standard size apartment in Seoul.
According to the 10th report by real estate appraisal company Realhouse, which aggregated data from the subscription home, the average sale price of national standard size apartments nationwide in June was 667.38 million won, up 5.17% from the same month last year. In Seoul, the average price was 1.69 billion won, up 287.01 million won (20.4%) from June last year (1.4 billion won), marking the highest level nationwide.
Considering that the limit on housing loans in the metropolitan area is restricted to a maximum of 600 million won due to the government's June 27 loan regulations, an average of 1.09 billion won in cash is needed to purchase a national standard size apartment in Seoul.
The average sale price of a dedicated 59 square meter apartment in Seoul also stands at 1.25587 billion won, which means that even after excluding the available loan of 600 million won, 655.87 million won must be procured in cash.
Meanwhile, the average sale price of national standard size apartments in Gyeonggi Province was found to be 794.19 million won, while in Incheon it was 654.23 million won. The cash requirements for each are approximately 190 million won and 54 million won, respectively. The cash burden gap between Seoul and Incheon has widened to over 20 times.
Kim Seon-a, head of the sale analysis team at Realhouse, noted, "As loan regulations are implemented, the entry barrier to the Seoul sale market is essentially determined by asset ownership," adding that "there is a possibility that demand may shift to the outskirts of the metropolitan area and local metropolitan cities with relatively lower financial burdens in the second half of the year."