Seoul Apartment Prices Rose 8.98% Last Year Despite Regulations... Highest Since Real Estate Board Statistics Began [Real Estate AtoZ]

Daegu Fell by 3.82%

View of apartment buildings in downtown Seoul from Namsan. Photo by Yonhap News

Apartment prices in Seoul rose by nearly 9% last year. Although this fell short of the record increase of 23.46% in 2006, it was the highest level since January 2013, when the Korea Real Estate Board took over the compilation of statistics from KB Kookmin Bank and began publishing them. The government rolled out strong measures such as the June 27 lending regulations and the October 15 expansion of land transaction permit zones, but concerns over insufficient supply combined with interest rate cuts meant these measures failed to curb buying demand. In contrast, most major metropolitan cities outside the Seoul metropolitan area remained on a downward trend, widening the gap with the capital region.

Market slowed after June 27 measures...surged again in October

According to the "Nationwide Housing Price Trend Survey for December 2025" released by the Korea Real Estate Board on January 15, 2026, the cumulative increase in apartment sales prices in Seoul last year was 8.98%. The previous year's increase was 4.67%, meaning the rate almost doubled in just one year. It also exceeded the sharp upswings seen in 2018 (8.03%) and 2021 (8.02%) under the Moon Jae-in administration.

Seoul apartment prices started the year with a 0.01% rise in January, then expanded to 0.8% in March and 1.44% in June. After the June 27 measures, the monthly increase narrowed to 1.09% in July and 0.48% in August, but then surged again to 1.43% in October. Following the October 15 measures, the rate slowed to 0.81% in November, only to expand again to 0.87% in December.

The upward trend in Seoul was led by the Gangnam area and the key Mayongseong (Mapo, Yongsan, Seongdong) districts. In December alone, apartment prices in Seoul rose 0.87%. By district, Songpa District recorded the highest increase at 1.72%, followed by Seocho District (1.71%), Yongsan District (1.45%), Dongjak District (1.38%), Gangdong District (1.30%), and Seongdong District (1.27%). The Korea Real Estate Board analyzed that "the increase in inquiries from buyers and transaction volume, particularly in highly favored areas such as large apartment complexes near subway stations and complexes undergoing redevelopment, amplified the overall rise."

Change rate of house price index by housing type in December last year. Korea Real Estate Board

The rise in Seoul apartment jeonse prices slowed compared with the previous year. The annual increase was 3.77%, which was 1.5 percentage points lower than the previous year's 5.23%. However, the pace of increase grew toward the second half of the year. After starting slightly weak at -0.03% in January, jeonse prices rose by 0.33% in June, 0.53% in October, and 0.68% in December. This was driven by continued shortages of available listings, with rental demand concentrating in popular school districts and areas near subway stations. As of December last year, Seocho District saw the largest rise at 1.71%, mainly in key complexes in Jamwon-dong and Banpo-dong. In Gangdong District (0.93%), school districts in Godeok-dong and Myeongil-dong led the increase, while in Yangcheon District (0.75%), large complexes in Sinjeong-dong and Mok-dong played the leading role. Songpa District (0.67%) and Yeongdeungpo District (0.64%) followed.

Gyeonggi apartment prices up 0.42% in December last year...Bundang 1.8%, Suji 1.89%

In Gyeonggi Province, price movements diverged depending on local conditions within the region. In December last year, apartment sales prices in Gyeonggi rose 0.42%, maintaining an increase in the 0.4% range for three consecutive months. While some areas such as Ilsanseo District in Goyang declined, key locations such as Bundang District in Seongnam (1.8%) and Suji District in Yongin (1.89%) posted sharp gains and led the overall upward market. This is seen as the result of buying demand concentrating in the first-generation new towns and adjacent areas, which offer good accessibility to Seoul and favorable residential environments.

The provincial apartment market outside the capital region showed mixed fortunes by area. Ulsan recorded a 0.71% rise in December, displaying the most notable increase among the five major metropolitan cities outside the capital, while North Jeolla Province (0.34%) and Sejong (0.15%) also followed an upward trajectory. However, Daegu fell 3.82% over the year due to the burden of large volumes of new supply, and continued its year-long decline with a further 0.07% drop in December. Jeju also saw a continued build-up of unsold units, with prices falling 2.17% over the year and 0.14% in December.

Meanwhile, both jeonse and monthly rents rose together, adding to the housing cost burden. In December, nationwide comprehensive housing jeonse prices (covering apartments, row houses, and detached houses) climbed 0.28%, while Seoul recorded a 0.53% increase, slightly higher than the previous month's 0.51%. In particular, Seoul continues to face shortages of available rental listings in popular complexes, such as those in strong school districts and near subway stations. Monthly rents also maintained their upward trend, with nationwide rents rising 0.27% and Seoul rents climbing 0.52%.