Despite the South Korean government’s tightened regulations to curb apartment prices in Seoul, the average rate has risen during the first five months this year, particularly in the middle-class districts, data showed earlier this week.

The average apartment price in the Korean capital stood at 10.64 million won ($8,700) per sqm as of the end of last month, up 4.9 per cent from December, said real estate data tracker KB Kookmin Bank Liiv On.

Areas considered less-wealthy, including Dongdaemun and Seongbuk districts, saw apartment prices rise by more than 10 per cent.

Apartment prices in posh districts, including Gangnam, Seocho and Songpa (collectively called the Greater Gangnam Area), rose 2.3 per cent, 2.2 per cent and 1.5 per cent, respectively. The figures were the lowest among the city’s 25 districts.

The respective average apartment price in Gangnam, Seocho and Songpa grew 7.5 per cent, eight per cent and 10.8 per cent between July and December last year, right before the government introduced a series of measures.

The government’s real estate regulations, announced on December 16, ban mortgage loans on apartments priced 1.5 billion won or higher, which have affected homes in relatively rich districts.

Those priced at 900 million or lower are under less strict regulations and consequently saw demand increase in the past months.

An 84sqm apartment, deemed as a popular apartment size for an average household in the city, costs 895 million won.

The price for the same-sized apartment came in 1.67 billion won in Gangnam, 1.47 billion won in Seocho, and 1.14 billion won in Songpa. Outside of the Greater Gangnam Area, Yongsan in central Seoul was the only area that exceeded the one billion won mark.

THE KOREA HERALD/ASIA NEWS NETWORK