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

Last year, apartment prices in Seoul rose by nearly 9%. While this falls short of the record increase of 23.46% in 2006, it is the highest rate since the Korea Real Estate Board took over the task of compiling statistics from KB Kookmin Bank and began publishing the data in January 2013. Despite the government rolling out a series of strong measures, such as the June 27 loan regulations and the October 15 expansion of land transaction permit zones, concerns over supply shortages and expectations of interest rate cuts fueled buying sentiment, preventing a slowdown in demand. In contrast, most major regional cities outside the Seoul metropolitan area continued to see declines, widening the gap with the capital region.

Growth Slowed After June 27 Measures... Surged Again in October

According to the "National Housing Price Trend Survey for December 2025" released by the Korea Real Estate Board on January 15, the cumulative annual increase in Seoul apartment sale prices last year was 8.98%. This is nearly double the 4.67% rise recorded the previous year, surpassing the sharp price hikes seen during the Moon Jae-in administration in 2018 (8.03%) and 2021 (8.02%).

Seoul apartment prices started with a 0.01% increase in January, then rose 0.8% in March and 1.44% in June. After the June 27 measures, the rate of increase slowed to 1.09% in July and 0.48% in August, but surged again to 1.43% in October. Following the October 15 measures, the growth rate eased to 0.81% in November but rose again to 0.87% in December.

The upward trend in Seoul was led by the Gangnam area and the key Mapo, Yongsan, and Seongdong districts. In December alone, Seoul apartment prices rose by 0.87%. By district, Songpa recorded the highest increase at 1.72%, followed by Seocho (1.71%), Yongsan (1.45%), Dongjak (1.38%), Gangdong (1.30%), and Seongdong (1.27%). The Korea Real Estate Board analyzed that "the increase in purchase inquiries and transaction volume, particularly in highly sought-after areas such as large complexes near subway stations and redevelopment zones, drove up the rate of price growth."

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

The upward trend in Seoul apartment jeonse (long-term lease) prices slowed compared to the previous year. The annual increase was 3.77%, which is 1.5 percentage points lower than the previous year's 5.23%. However, the rate of increase grew in the second half of the year. After starting slightly negative at -0.03% in January, jeonse prices rose by 0.33% in June, 0.53% in October, and 0.68% in December. This was due to continued shortages of available units and a concentration of tenant demand in areas with good schools and proximity to subway stations. As of December last year, Seocho district saw the highest increase at 1.71%, mainly in major complexes in Jamwon and Banpo-dong. In Gangdong (0.93%), the rise was led by school districts in Godeok and Myeongil-dong, while in Yangcheon (0.75%), large complexes in Sinjeong and Mok-dong drove the increase. Songpa (0.67%) and Yeongdeungpo (0.64%) followed.

In December Last Year, Gyeonggi Apartment Prices Rose 0.42%... Bundang Up 1.8%, Suji Up 1.89%

In Gyeonggi Province, price trends varied depending on location. In December last year, apartment sale prices in Gyeonggi rose by 0.42%, maintaining growth in the 0.4% range for three consecutive months. While some areas, such as Ilsanseo-gu in Goyang, saw declines, key locations like Bundang-gu in Seongnam (1.8%) and Suji-gu in Yongin (1.89%) experienced sharp increases and led the upward trend. This was attributed to strong buying interest in first-generation new towns and nearby areas with good accessibility to Seoul and favorable living conditions.

The apartment market in regional cities showed mixed results. Ulsan saw the most pronounced increase among the five major regional cities, with a 0.71% rise in December. Jeonbuk (0.34%) and Sejong (0.15%) also trended upward. However, Daegu saw a 3.82% drop over the year, mainly due to a glut of new supply, and continued its decline for the twelfth consecutive month with a 0.07% decrease in December. Jeju also faced ongoing oversupply of unsold homes, resulting in a 2.17% annual decrease and a 0.14% drop in December.

Meanwhile, both jeonse and monthly rent prices continued to rise, further increasing the burden of housing costs. The nationwide housing jeonse price index rose by 0.28% in December, with Seoul seeing a 0.53% increase, up from 0.51% the previous month. In particular, Seoul continued to experience shortages of available units, especially in preferred areas near schools and subway stations. Monthly rents also rose, with the nationwide figure up 0.27% and Seoul up 0.52%, continuing the upward trend.