People’s dreams of owning their own homes in Jeju are being stymied by skyrocketing prices. Now with the abolishment of a real estate law that capped prices for new homes… there seems to be no stopping this upward trend.
Mike Balfour reports.
Prices of homes in Jeju are skyrocketing.

According to the Korea Appraisal Board, the average selling price of an apartment in Jeju in the first half of 2015 was 180 million won… up 13 percent from last year’s 160 million won. Within just one year, apartment prices have gone up by about 20 million won.

But that’s just the average. With some apartments now costing over 400 million won to buy, pundits say the increase is much higher for many homes.

Korean-style villas and multiplex housing units are also following the trend.

[Camera] Hyeon Gwang-hoon

Last April, a law that placed a cap on prices of new homes was abolished, making room for further price hikes.

The minimum number of homes needed for business approval also went up from 20 to 30… meaning that if a contractor builds 29 homes… he or she can decide the price of the housing without any approval from the administration.

[INTERVIEW]
Lee Jong-hoon / Jeju Construction & Administration Division
The revision to the real estate law means public housing units are required to undergo government screening of its price, but homes built by private owners are free to decide on their own accord.
<인터뷰:이종훈 제주시 건축행정과장>
"주택법 개정으로 공공택지의 경우 분양가를 심의할 수 있지만
나머지 민간이 주택을 지을 경우 어떤 조치도 할 수 없게됐다."

The ongoing influx of people coming to live in Jeju and increasing demand for homes will likely continue to keep home prices going up.

[Reporter]
Mike Balfour

But concerns are being voiced regarding the real estate hype… with calls for the local government to place a cap on new homes in Jeju in the future. Mike Balfour KCTV