The price difference between new construction and construction in Seoul is KRW 600 million due to rising construction costs.

Due to the preference for new construction and soaring construction costs, the price difference between new and built apartments in Seoul has widened by nearly 600 million won.

Real Estate R114 surveyed the average price per household on a sample of 1.103 million apartments in Seoul, and as of the 8th, the average price of new apartments in Seoul was KRW 1.8514 billion, which was about KRW 580 million higher than the average of KRW 1.269.84 billion.

The gap between new construction and construction prices, which was around KRW 300 million in 2020, narrowed to KRW 260 million in 2021, KRW 200 million in 2022, and KRW 170 million last year, and then widened sharply this year.

In particular, the current price of new apartments in Seoul is 117% of the average high point, far exceeding the existing high price, while the current price of apartments in Seoul that have been completed for more than 10 years is 96% of the high point.

In addition, the current price of semi-new apartments in the 6th to 10th year is about 96% compared to the previous high point.

By distinction, Yongsan had the largest price difference between new construction and construction, followed by Gangnam and Seodaemun.

The surge in new construction prices in Seoul this year seems to be due to the strong demand for "one smart house" as multi-house regulations continue, and the sale price has risen sharply due to the recent surge in construction costs.

However, in some areas of Seoul, such as Seocho, Songpa, and Yangcheon, the average price of construction was higher than that of new construction.

Real Estate R114 analyzed that these areas have many reconstruction complexes, and the government's recent move to ease regulations has raised expectations for reconstruction.