"Earned More Than an Annual Salary Just by Owning... The Value of Diligent Work Is Fading" [Real Estate AtoZ]

Apartment Price Gains in 16 Seoul Districts Surpass Average Annual Salary
Gangnam, Seocho, Songpa, Yongsan See Increases 5 to 6 Times Higher Than Annual Wages
"Hangang Belt" Districts Also Record Gains More Than Twice the Average Salary
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In 16 out of Seoul's 25 districts, the average annual increase in apartment sale prices has surpassed the total annual wages of Seoul workers. Notably, the one-year increase in apartment prices in Gangnam and Seocho districts exceeded six times the average annual salary. As the economic structure in Seoul increasingly rewards simply owning an apartment more than annual wages, concerns are growing that the value of "diligent labor" is gradually diminishing.

Apgujeong Hyundai Apartment. Photo by Hyunmin Kim kimhyun81@

According to an analysis of "Average Apartment Sale Prices by Seoul District" from Real Estate R114, covering January to November of this year, the annual increase in apartment prices exceeded 60 million won in 16 districts (Gangnam, Seocho, Songpa, Yongsan, Seongdong, Gwangjin, Mapo, Gangdong, Yeongdeungpo, Dongjak, Yangcheon, Seodaemun, Jung, Jongno, Gangseo, and Dongdaemun). This amount is higher than the total annual wage (4.765 million won per month, or 57.18 million won per year) for workers in businesses with at least one employee in Seoul, as announced by the Ministry of Employment and Labor in September. This means that those who own a single apartment in these 16 districts saw their assets grow more in one year than the average wage-earning worker without a home, even if they did nothing.

In particular, the three Gangnam districts (Gangnam, Seocho, Songpa) and Yongsan showed the largest gaps, far outpacing the overall rise in Seoul. Gangnam's annual price increase was 375.21 million won, about 6.56 times the average annual salary. Seocho recorded 353.35 million won (6.18 times), Songpa 331.9 million won (5.80 times), and Yongsan 254.09 million won (4.44 times).

Core areas of the "Hangang Belt," such as Seongdong (195 million won, 3.41 times the annual salary), Gwangjin (169.65 million won, 2.96 times), and Mapo (166.62 million won, 2.91 times), also saw increases more than double the average annual wage. Other districts along the Han River, including Gangdong (159.14 million won, 2.78 times), Yeongdeungpo (156.8 million won, 2.74 times), and Dongjak (146.64 million won, 2.56 times), showed similar trends. These six districts even surpassed the previous record-high apartment prices set during the Moon Jae-in administration (2017-2022).

Outlying districts saw relatively smaller increases. Even within Seoul, there was a clear regional disparity. In nine districts-Nowon, Dobong, Gangbuk, Geumcheon, Gwanak, Guro, Eunpyeong, Seongbuk, and Jungnang-the annual price increase was less than the average annual wage (57.18 million won). In Nowon (23.8 million won), Dobong (15.05 million won), and Gangbuk (16.69 million won), the increase was less than half the average annual salary. Geumcheon saw an increase of only 4.67 million won.

This surge in housing prices is fueling the belief that "it is impossible to buy an apartment in Seoul through work alone," spreading a sense of futility about labor. Among Millennials & Gen Z without homes, resignation is growing, with many saying they have become "lightning-poor" overnight. Some experts warn that the widening asset gap could become a source of social conflict in the future.

Ham Youngjin, head of the Real Estate Research Lab at Woori Bank, stated, "The housing market in Seoul's core areas is still supported by abundant liquidity and limited supply," adding, "It is difficult for wage growth to keep up with the pace of housing price increases." He continued, "As concentration in areas like Gangnam and Seocho intensifies, asset polarization could worsen. Without mid- to long-term supply plans, it will be difficult to resolve these structural disparities with only short-term regulations."

Meanwhile, the government is expected to announce additional supply measures to stabilize the market later this month. However, skepticism prevails in the market, with many doubting that expectations for a slowdown in Seoul's housing price increases can be curbed without bold new policies.