Price Per Pyeong Calculator

01

Price per pyeong is the unit price per area of real estate, a key metric for fair comparison across different sizes. Formula: Price per pyeong = Total price ÷ Exclusive area (pyeong). Example: Total 600M KRW, exclusive 30 pyeong → Price per pyeong 20M KRW (600M÷30). Uses: ① Compare different sizes in same complex, ② Analyze price competitiveness, ③ Judge market value, ④ Evaluate investment value. Important: Use exclusive area for accurate calculation. Using supply area distorts the price lower.

02

Same region comparison: Seoul Gangnam A apartment (45M KRW per pyeong) vs B apartment (42M KRW per pyeong) → 3M KRW difference per pyeong. For 30 pyeong, total difference is 90M KRW (3M×30). Differences come from: ① Location (near vs far from station), ② Building age (new vs old), ③ Brand (major vs small builder), ④ Complex size (large vs small), ⑤ Floor, direction, layout. Regional comparison: Seoul Gangnam (50M/pyeong) vs Gyeonggi Bundang (30M/pyeong) vs Incheon (20M/pyeong). For 30 pyeong: Gangnam 1.5B KRW, Bundang 900M KRW, Incheon 600M KRW.

03

Fair price judgment: If nearby complex average is 25M KRW per pyeong and specific unit is 30M KRW, it is 20% higher. Check for premium factors (low floor preference, south-facing, remodeling). If 22M KRW, it is 12% cheaper - check for urgent sale or defects. Price ceiling comparison: Price-capped complexes have government-recognized fair price per pyeong. 2024 Seoul area average ceiling 28M KRW per pyeong. Within ±10% of market = fair, +20% or more = overpriced, -20% or more = urgent sale or defect suspected.

04

Apartments have higher prices due to elevators, management systems, and large-complex facilities. Same area: apartment 25M KRW per pyeong, villa 15M KRW per pyeong → about 1.7× difference. For 30 pyeong: apartment 750M KRW, villa 450M KRW. Why villas are cheaper: ① No elevator (4-5 floors), ② Low maintenance but poor management, ③ Insufficient parking, ④ Low redevelopment possibility, ⑤ Lower loan limits (LTV 40% vs apartment 50-60%). Officetels are 10-30% cheaper per pyeong than apartments even for residential use.

05

Seoul apartment prices past 5 years: 2019 22M KRW → 2020 25M KRW (+13.6%) → 2021 32M KRW (+28%) → 2022 35M KRW (+9.4%) → 2023 33M KRW (-5.7%) → 2024 34M KRW (+3%). After 2021 surge, adjustment followed by gradual 2024 rise. Regional trends: Gangnam 3 districts 50~70M KRW, Gangbuk 25~35M KRW, Gyeonggi 18~30M KRW, provinces 10~20M KRW. 2025 outlook: ① Interest rate cuts → 5-10% increase, ② Rate hold → stable, ③ Low-supply areas continue rising, ④ Oversupply areas weak.

06

ROI calculation: Purchase at 20M KRW per pyeong (total 600M, 30 pyeong) → 3 years later 24M KRW per pyeong (total 720M) → Profit 120M KRW. ROI = (120M÷600M)×100 = 20%. Annual average 6.3%. After taxes and fees, actual ROI about 12-15%. Jeonse gap investment: Purchase 20M/pyeong (600M), jeonse 14M/pyeong (420M) → Gap 180M KRW. Own 600M asset with 180M capital - leverage effect. If price rises to 22M/pyeong (660M), profit 60M KRW. ROI = (60M÷180M)×100 = 33.3%.