Bank of Korea analysis… If Gangnam house price rises 1%p, Gangbuk 0.40%p↑, metropolitan area 0.58%↑
An analysis showed that a significant part of the increase in house prices nationwide last year was influenced by price trends in Gangnam, Seoul and the metropolitan area.
According to the ‘Housing Price Transition Effect Analysis’ report released on the 6th by the Inflation Research Team and Trend Analysis Team of the Bank of Korea Research Bureau, the ‘Housing Price Transition Effect’, which refers to the effect of a house price change in a specific area on the price change in the surrounding area, was estimated. As a result, the transfer effect of 11 districts in Gangnam was 21.9% on average, higher than that of Gangbuk (16.6%).
If the national housing price rises by 1 million won on average, 219,000 won of that is estimated to have been affected by the increase in house prices in the Gangnam area.
The transfer effect of house prices in the metropolitan area was 20.1% on average, which was higher than that in provincial cities (7.5%).
In addition, if the housing price increase rate in the Gangnam area rises by 1 percentage point (p), it is estimated that the housing price increase rate in the Gangbuk area, the metropolitan area (excluding Seoul), and metropolitan cities (excluding Incheon) will also increase by 0.40 percentage points, 0.58 percentage points, and 0.15 percentage points, respectively. .
In the report, the BOK explained, “It is analyzed that fluctuations in sales prices in Gangnam have a strong effect on the surrounding areas.”
He continued, “It was found that the large increase in housing prices last year was due to not only macro factors, but also local factors and the transfer effect of those factors. Together, the transfer effect to the surrounding area should be considered,” he advised.
/yunhap news
