SEOUL APARTMENT PRICES REACH RECORD HIGH

[Anchor Lead]

Apartment prices in the Seoul metropolitan area recorded the highest increase in nine years this week. Rental prices also continue to surge.

[Pkg]

This apartment complex in Nowon-gu District, Seoul, is subject to reconstruction. A 95 sq.m. unit was sold recently for 950 million won. Other units for sale surpass the one billion won mark.

[Soundbite] (Realtor(VOICE MODIFIED)) : "Prices are keep going up lately and there are few units up for sale. They are sold one by one these days."

Apartment prices in Nowon-gu District have recorded the highest increase in Seoul for 15 consecutive weeks on hopes that reconstruction will begin soon. Housing prices in Gyeonggi-do Province are also rising in areas where new railways are to be built. Apartment prices in the greater Seoul area spiked 0.36 percent this week, the highest increase since the Korea Real Estate Board began compiling weekly statistics in 2012.

[Soundbite] Ham Young-jin(Zigbang, Big data team manager) : "There are fewer transactions now compared to the ones last year. Though people are tired of the ever-rising prices, there are still many factors driving them up."

Apartment rental prices are also on the rise. In Seoul, they went up 0.15 percent, the highest increase since last December.

[Soundbite] Kwon Dae-jung(Prof., Myongji University) : "Due to the shortage of available apartments, rental prices remain high for both monthly and Jeonse rentals. Prices of apartments for sale also keep rising."

While there are more apartment units for rent now, as owners are no longer required to live in their properties for at least two years before reconstruction, experts say it remains to be seen if rental prices will fall.