How much does a house cost in Korea? Analysis of the latest housing price trends and hot spots in 2024
In recent years, South Korean housing prices have been a hot topic of concern to global investors and immigrants. This article combines the hot discussions on the Internet in the past 10 days to sort out housing price data, policy changes and market trends in major cities in South Korea to help you quickly grasp the core information.
1. Housing price data in major cities in South Korea (updated in January 2024)
| city | Area type | Average house price (KRW/㎡) | Equivalent to RMB (yuan/㎡) |
|---|---|---|---|
| Seoul | Jiangnan District (high-end) | 42 million-65 million | 227,000-351,000 |
| Seoul | Ordinary residential area | 18 million-30 million | 97,000-162,000 |
| Busan | Haeundae-gu | 15 million-28 million | 81,000-151,000 |
| incheon | Songdao International City | 12 million-20 million | 65,000-108,000 |
2. Recent hot spots in South Korea’s real estate market
1.Seoul house price fluctuations draw concern: According to the Chosun Ilbo, some high-end residential prices in Seoul have dropped by about 8% from their peak in 2023, but the core areas of Gangnam District have remained stable.
2.The risks of the all-rental housing system have intensified: South Korean government data shows that total rent fraud cases increased by 23% year-on-year in 2023, making foreign investors more inclined to purchase properties directly.
3.Investment enthusiasm in Jeju Island rises: Due to the immigration policy and tax-free advantages, the number of real estate inquiries from Chinese investors on Jeju Island increased by 15% month-on-month, with an average price of about 100 million won (540,000 yuan) per unit.
3. Key factors affecting housing prices
| factors | current level of impact | Trend forecast |
|---|---|---|
| interest rate policy | South Korea’s benchmark interest rate is 3.5% | May be lowered in 2024 |
| Restrictions on foreign property purchases | Discount available only in Jeju Island | Policies may be tightened |
| land supply | Seoul’s new land area decreases | Long term bullish |
4. House purchase cost details (taking an 80㎡ apartment in Seoul as an example)
| Project | Fee (KRW) | Proportion |
|---|---|---|
| house price | 2.4 billion (median) | 91.3% |
| Deed tax | 120 million | 4.6% |
| agency fee | 06 million | 2.3% |
| Other miscellaneous expenses | 40 million | 1.8% |
5. Expert advice
1.Location selection: If you have a limited budget, you can consider Incheon or Gwangju. Emerging areas such as Seodaemun District in Seoul are more cost-effective.
2.exchange rate window: The recent exchange rate between Korean won and RMB is at a low level (around 1:183). Buying a house with cash currency can save about 5%-8% of the cost.
3.legal risks: Transactions must be made through formal intermediaries. Korean law requires foreigners to declare FATCA terms when purchasing houses.
It can be seen from the above data analysis that the Korean real estate market shows regional differentiation characteristics. It is recommended that investors combine their own needs and pay close attention to the market changes brought about by the monetary policy adjustment of the Bank of Korea in 2024.
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