According to data from the Bank of Korea and Statistics Korea, the housing price index for apartment living increased to 108.68 in the second quarter, a 24.3 percent increase from 87.4 in 2012. The jump is about quadruple the 6.3 percent consumer price index inflation rate.
By the end of July, housing management fees rose 3.8 percent, triple the country’s overall inflation rate of 1.3 percent.
The cost of managing a 30-pyeong (99-square-meter) apartment in Seoul during the month of June was 84,240 won ($75.30), up 26 percent compared to five years ago.
The spike in apartment maintenance and management costs is being attributed to rising labor and repair costs.
Apartment housing management expenses include general management, elevator maintenance, cleaning, disinfection, repairs, security and resident meetings. Heating, electricity and water charges are excluded from management expenses.
The data also showed that general administration expenses increased by 18 percent compared to June 2012, while cleaning and security fees increased by 37 percent and 24 percent, respectively. Costs for housing repair and maintenance doubled.
As of July, the number of apartments costing more than 1 billion won had nearly doubled over the past five years, as Seoul’s real estate prices continue to soar, according to data released by property market research company Real Estate 114.
Approximately 78 percent of apartments in Seoul’s affluent districts of Gangnam, Seocho and Songpa have prices exceeding 1 billion won. In 2012, the three districts accounted for 27 percent of all 1 billion-won-plus apartments in Seoul, however, this year the figure had more than doubled, accounting for 61 percent of the capital’s expensive dwellings.
By Julie Jackson (email@example.com)