Seoul Apartment Prices Cross 1.6 Billion Won Threshold

Seoul’s average apartment sale price reached 1.6074 billion won in August. This marks the first time the figure has exceeded the 1.6 billion won threshold. President Lee Jae Myung defended his housing policies during a September 18 press conference. He blamed the opposition for the recent price increases. He stated that he would not change his current approach to demand suppression.

The president attributed rising prices in the capital region to previous administrative decisions. He noted that construction permits and starts halved in 2022. This period coincided with the start of the previous administration. He claimed that his current measures are accelerating land development and urban renewal. His office receives weekly reports on progress at designated locations.

Price Trends Diverge Across Seoul Districts

Gangnam District housing prices have recently weakened. Prices in northern and outer Seoul areas are rising simultaneously. President Lee described this shift as a leveling process. He said Gangnam prices fall while outer areas rise slightly. Online real estate communities criticized this characterization as out of touch.

Data shows a synchronized rise in prices across the city. The average price surpassed the symbolic 1.6 billion won barrier. Experts argue that outer-area increases reflect survival-driven purchases. This trend occurs amid soaring jeonse and monthly rents. The government maintains that its policies are stabilizing the market.

Experts Challenge Government Narrative On Prices

Lee Chang-mu, a professor at Hanyang University, predicts continued upward trends. He views the Gangnam price stabilization as a short-term effect. He believes prices will rise again soon. Kim In-man, head of the Real Estate Economic Research Institute, disagrees with the leveling term. He argues the rise reflects a crisis in housing affordability.

The Cheong Wa Dae clarified the president’s remarks. It stated the leveling comment explained price trends. The administration continues to track progress on construction permits. It aims to identify real estate speculation through farmland surveys. Farmers have opposed these surveys, claiming they target family land.

Political Blame Shapes Housing Policy Debate

President Lee linked high prices to the Yoon Suk Yeol administration. He pointed to the election of Seoul Mayor Oh Se-hoon. He cited the halving of permits during that period. Critics argue this deflects attention from current supply gaps. The government continues to focus on demand-side regulations.

The administration has implemented four major policy packages. These ranged from June mortgage regulations to August measures. The president did not detail the effectiveness of these specific actions. He emphasized the need to break the myth of real estate invincibility. The market remains volatile as prices hold firm above historic levels.