Seoul, South Korea - A recent study by Real Estate R114 has revealed a widening gap between the prices of new and older apartments in Seoul. The average price of a newly constructed apartment in the city has reached 1.85 billion won, significantly higher than the 1.27 billion won average for older apartments.

This price disparity has been growing over the years. While the gap between new and old apartments was around 300 million won in 2020, it has widened to over 580 million won in 2023. This trend is attributed to the increasing preference for "one solid home," especially among affluent buyers.

New apartments in Seoul have seen their prices surge above pre-pandemic levels, with an average price increase of 117% compared to their previous peak. In contrast, older apartments have only recovered 96% of their peak value, which was recorded in 2021.

Yongsan district exhibited the most significant price gap between new and old apartments. The average price of a new apartment in Yongsan was a staggering 3.56 billion won, more than 1.88 billion won higher than the average for older apartments. Gangnam district followed closely, with a price difference of 4.73 billion won between new and old apartments.

The growing disparity between new and old apartments in Seoul can be attributed to several factors, including:

Preference for new construction: Buyers are increasingly seeking out newly built apartments with modern amenities and features.
Limited supply of new apartments: The supply of new apartments in Seoul has been constrained, driving up prices.
Rising construction costs: Increased construction costs have contributed to higher prices for new apartments.