Seoul: The risk index for Seoul's housing market has climbed to a record high, partly driven by a steady rise in the price of apartment units in the capital while prices in rural and lesser populated areas continue to decline, a central bank report showed Tuesday.
According to Yonhap News Agency, the combined value of apartments in Seoul accounted for 43.3 percent of that of all apartment units in the country as of end-November, surpassing the previous record high of 43.2 percent set in August 2020. This data was provided by the Bank of Korea (BOK).
Consequently, the risk index of the capital city's housing market came to 0.9 for the July-September period, marking the highest level since the central bank began compiling such data in 2018. A risk index measures potential instability to assess bubble risk, often using indicators like price-to-income ratios.
As of end-September, the combined value of apartments in Seoul stood at three times the total gross regional domestic product of Seoul, also the highest since 2018, according to the BOK report. "The continued increase of housing prices in Seoul and the surrounding capital region may lead to potential risks such as the accumulation of financial imbalances," the report stated.