Seoul apartment prices keep rising despite government measures to stabilize

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Seoul apartment prices keep rising despite government measures to stabilize

Published: 25 Sep. 2025, 11:33 Updated: 25 Sep. 2025, 20:00

Audio report: written by reporters, read by AI

Apartment buildings are seen from Mount Namsan in central Seoul on Sept. 7. [YONHAP]

Apartment prices in Seoul’s most coveted neighborhoods, particularly along the Han River, are breaking records despite government efforts to cool the market.

In Mapo District, western Seoul, an 84-square-meter (904-square-foot) unit at Mapo Raemian Prugio sold for 2.475 billion won ($1.77 million) in early September, a jump of 175 million won from a deal struck just 10 days earlier. Another unit of the same size at Mapo Prestige Xi fetched 2.75 billion won, the highest price yet for the complex.

“High-rise units are now going for 3 billion won,” said a local real estate agent. “Inventory is tight, but demand is strong, so every transaction sets a new record.”

The same pattern is playing out in Seongdong District, east of the river. A 59-square-meter apartment in e-Pyeonhansesang Oksu Park Hills sold for 2.29 billion won on Sept. 13, up 130 million won in two weeks. Realtors say buyers are rushing in ahead of possible land transaction restrictions, with cash-rich investors purchasing lease-backed apartments without even visiting in person.

The government has rolled out measures — on June 27 and Sept. 7 — including a 600-million-won cap on mortgage loans. But prices in high-demand districts keep rising. Many buyers, skeptical of the government’s housing supply plan, are pursuing what’s known as a “smart buy” — a single, high-value apartment seen as safe against future regulation.

“Usually, volume drives prices higher,” said Yang Ji-young, head of wealth management consulting at Shinhan Investment & Securities. “But right now, record-breaking deals are happening even as overall transactions shrink. That’s distorting the market.”

Apartments are seen from Mount Namsan in central Seoul on Sept. 18. [YONHAP]

Homeowners are pulling listings, waiting for prices to climb further. Buyers with cash are shifting into neighborhoods just below Gangnam in price — Mapo, Seongdong, Gwangjin and Dongjak.

“With only a 600 million won loan, buying in Gangnam is impossible unless you’re very wealthy,” said Seo Jin-hyung, a professor at Kwangwoon University. “The balloon effect is spilling into the next tier of Han River districts.”

Data from real estate platform Zigbang show that while total apartment transactions in Seoul plunged from more than 10,900 in June to under 4,100 in August, the share of record-high deals is growing. In Seongdong, 46 percent of transactions this month set new records, up from 32 percent in August. Mapo rose from 31 to 38 percent; Gwangjin, from 44 to 56 percent.

Realtors say the Sept. 7 policy announcement, meant to cool the market, instead fueled urgency. “There’s no new supply, just hints of tighter rules,” said one Mapo real estate agent. “That drove the spike.”

President Lee Jae Myung said his administration would “continue to roll out real estate measures,” signaling further restrictions. The Sept. 7 plan promised 1.35 million new homes in the greater Seoul area by 2030. But construction won’t begin for years, and most sites lie on the outskirts. In the meantime, regulators are weighing stricter rules, including lower loan-to-value ratios and broader land transaction permit zones.

Apartments are seen from Mount Namsan in central Seoul on Sept. 18. [YONHAP]

Despite tighter credit, wealthy buyers continue to target the Han River belt. Many are young couples backed by parents or dual-income households trading up. Out-of-town investors are also active. For ordinary buyers, however, the market is slipping away.

“Prices in neighborhoods I wanted to buy have risen nonstop since June,” said a 30-something office worker. “Mapo is completely out of reach now.”

As demand pushes outward, prices are climbing in adjacent districts such as Dongdaemun and Eunpyeong. A unit at Raemian Crecity near Cheongnyangni Station sold for 1.6 billion won, a record for the complex. Similar highs are being reported in Gangdong, Seongbuk and other Han River fringe districts.

Notices advertising monthly rent for studio apartments is posted near Hankuk University of Foreign Studies in Dongdaemun District, eastern Seoul, on Aug. 26. [YONHAP]

“Fear of missing out is driving the surge in Han River prices,” said Ham Young-jin, head of Woori Bank’s Real Estate Research Lab. “That momentum is now spreading outward.”

Still, many analysts caution that the rally won’t extend to Seoul’s northern outer districts, known as NoDoGang. “Balloon effects reach only areas with perceived long-term potential,” said Professor Seo.

Park Won-gap, senior expert at KB Kookmin Bank, warned against calling this a full rebound. “We’re not in a true upcycle yet,” he said. “New regulations after Chuseok could mark a turning point.”

Officials are preparing stronger measures ahead of the National Assembly audit next month. Critics, however, warn that more regulation could backfire.

“Overregulation risks distorting the market further,” said Lee Chang-moo, an urban planning professor at Hanyang University. He urged the government to focus on real supply in central Seoul.

Kim Kyung-min, a professor at Seoul National University, pointed to the Yongsan business district and Suseo Station as potential housing sites. He recalled how large-scale public housing projects under the Lee Myung-bak administration helped cool prices when liquidity surged in the late 2000s. “That’s a lesson worth revisiting,” he said.

Yang of Shinhan Investment added that easing capital gains taxes for multiple-home owners might free up listings. “Encouraging supply from existing homeowners could help balance the market,” she said.

A picture of an apartment complex is put up at a real estate agency on July 27 in Seoul. [YONHAP]

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
BY BAEK MIN-JEONG [[email protected]]