Seoul apartment prices rose 6% a year on average over 40 years
A graphic shows annual changes in Seoul apartment prices from 1987 to 2025, with an average annual increase of about 6.2%, according to KB Real Estate. Graphic by Asia Today and translated by UPI
Feb. 13 (Asia Today) — Seoul apartment prices have risen more than 6% a year on average over the past four decades, data showed, reinforcing perceptions among South Korean buyers that housing in the capital remains a “safe asset.”
KB Real Estate data showed Seoul apartment prices increased an average of 6.17% a year from 1987 through 2025. That compares with a 2.56% average rise in other regions outside major metropolitan cities, the data showed.
Market analysts attributed the gap partly to policies and tax rules that have discouraged multiple-home ownership, while encouraging demand for a single “best-in-class” property in Seoul, fueling persistent scarcity.
Demand has also been supported by tighter rules on property transactions in Seoul. After the government designated the entire capital as a land transaction permit zone, purchases that rely on “gap investment” – buying a home while using a tenant’s large lump-sum deposit lease to fund the purchase – have become harder, pushing lease prices higher, analysts said.
The Korea Real Estate Board said Seoul apartment lease prices rose 3.76% last year.
A real estate industry official said Seoul apartments tend to hold value during market downturns, then rise sharply in upswings, adding that some buyers are now focusing on large new pre-sale projects as lease prices climb and new supply remains limited.
— Reported by Asia Today; translated by UPI
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Original Korean report: https://www.asiatoday.co.kr/kn/view.php?key=20260213010004938