Property Prices Soar in Seoul

The Korean government has announced it will raise property taxes in a new attempt to stop soaring real estate prices that are affecting Seoul predominantly.

Data by Kookmin Bank published by Bloomberg shows how much prices in the capital have risen. In approximately three years, the price of an average Seoul apartment rose by more than 50 percent, from approximately $500,000 (600 million Won) to $770,000 (925 million Won). Second city Busan as well as Daegu and Incheon only logged modest gains in the same time frame.

The government said it wanted to ease regulations in order for more properties – especially more affordable ones – to be built. Purchase of residential property for investment and a high degree of urbanization have put a strain on the housing supply in South Korea for many years. While government policy has been somewhat successful at controlling price growth in many regions, the Seoul property market remains to be reigned in.