South Koreans Rush to Buy Shabby Flats as Prices Soar

Seo Hong Seok was unimpressed with the two-bedroom apartment in Gaepo-dong, Seoul, he looked at in December. The 27-year-old unit had cracks in the outside walls and peeling paint.

Six months later, the flat’s value had risen 55 percent and Seo, 40, hurried to buy a smaller, 25-square-meter (270-square- foot) unit in the same complex for 485 million won ($381,000), 15 percent more than he could have paid for the other apartment.