Raising Gangbuk’s appeal is key to taming Seoul’s runaway housing prices

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Raising Gangbuk’s appeal is key to taming Seoul’s runaway housing prices

Published: 05 Jan. 2026, 00:03

Audio report: written by reporters, read by AI

Kim Dong-ho

The author is an editorial writer at the JoongAng Ilbo.

Divided by the Han River, Seoul reflects a stark contrast between Gangbuk, rich in history and central functions yet lagging in development, and Gangnam, whose newer, master-planned neighborhoods have long set the pace for housing demand and prices. Much of northern Seoul, known as Gangbuk, can feel as if time has stopped. In many neighborhoods, especially farther from the city center, roads are narrow, traffic congestion is routine and aging buildings are common. While multiple subway lines intersect across Gangnam, as the area south of the Han River is called, Gangbuk’s network is sparse and uneven. This extreme asymmetry lies at the heart of Seoul’s housing anxiety.

The photo shows apartment complexes along the Han River as seen from Lotte World Tower in Songpa District on Sept. 29, 2025, with the Gangnam areas — including Gangnam and Songpa districts — on the left. The Seoul Metropolitan Government said on that day that it plans to begin construction on 310,000 housing units by 2031. [NEWS1]

Last year, apartment prices in Songpa District rose by 21 percent, while those in Jungnang District increased by just 0.79 percent. After the Moon Jae-in administration tightened regulations on owners of multiple homes, demand increasingly concentrated on a single high-quality property, a trend often described as “one solid home.” As price polarization deepened, complaints that “housing prices have gone mad” became widespread. Even President Lee Jae Myung has acknowledged that there is no easy solution to soaring home prices in the Seoul metropolitan area.

The problem is not a shortage of housing units in absolute terms, but a lack of homes people genuinely want to live in. Livable environments and high-quality housing remain scarce. Is there a way out? If Gangbuk could be made as attractive as Gangnam, demand might spread more evenly, easing the relentless pressure on southern Seoul.

A look at conditions on both sides of the river is instructive. Shortly before the Covid-19 pandemic, a walk through the back alleys of Chungjeongno in Seodaemun District revealed walls and staircases coated in bright paint. The aim was to prevent indiscriminate redevelopment and protect residents. Such neighborhoods were not unusual across Gangbuk at the time.

Gangnam, by contrast, continued to reinvent itself. Recently, while passing new apartment complexes in Samseong and Cheongdam, it was hard not to be stunned by price listings posted in real estate offices. Apartments of standard size were advertised starting at 6 billion won (about $4.2 million). Access roads were wide and smoothly paved, underscoring the contrast with much of the north.

This stark disparity suggests that stabilizing Seoul’s housing market may depend as much on raising Gangbuk’s appeal as on expanding supply in Gangnam. Gangbuk is central to Seoul’s identity and holds vast untapped potential. Palaces, fortress walls and historic homes preserve the essence of Korean heritage. Yet for years, the area has been dismissed as old and inconvenient. Although it contains many cultural assets, few have been widely promoted or effectively showcased.

True preservation does not mean freezing a city in time. In London’s Tate Modern or Paris’s Marais district, historic areas gained new life by blending old structures with contemporary creativity. When aging neighborhoods are reimagined rather than abandoned, tradition and innovation can reinforce each other.

Tokyo offers a compelling example. Last year, it ranked second globally on the Global Power City Index, surpassing New York, driven in part by a surge in foreign tourists. Since 2002, Japan has eased building regulations and combined historical spaces with cutting-edge urban functions. By injecting new energy into aging districts, Tokyo dispersed housing demand beyond a handful of popular areas and revitalized the city as a whole.

Similar changes are not unheard of in Korea. Last year, the number of foreign visitors to Busan surpassed three million. The city’s appeal has risen dramatically, reflecting years of effort to reinvent itself.

The housing price surge fueled by Gangnam-centric demand is tightening the squeeze on household finances. According to the Bank of Korea, cumulative household debt since 2013 has reduced annual consumption growth by about 0.4 percentage points each year. Housing wealth may have increased, but disposable income has not. This “consumption sclerosis” leaves even Gangnam homeowners struggling under heavy mortgage burdens. When they must also help their children secure housing, spending becomes even more constrained, weakening domestic demand.

Relying solely on expanding housing supply in Gangnam will not break this vicious cycle. The government recently launched a Housing Supply Promotion Headquarters under the Ministry of Land, Infrastructure and Transport. The new unit is tasked with implementing the Sept. 7 supply plan, which aims to begin construction on 1.35 million homes in the Seoul metropolitan area over five years. With 77 staff across nine divisions, it is a sizable organization. But real results will require a shift in thinking, centered on transforming Gangbuk.

Demolition work is underway on May 15 in the Baeksa Village area of Junggye-dong, Nowon District, Seoul. Baeksa Village is known as a shantytown formed in the late 1960s by residents displaced by urban redevelopment in central Seoul, including Yongsan and Cheonggyecheon. After years of debate and conflict, demolition for redevelopment began in early May. [YONHAP]

That means boldly expanding internal transportation networks to improve daily convenience. Redevelopment and reconstruction projects should significantly increase public libraries, sports facilities and parks, creating neighborhoods that are more livable than those in Gangnam. The moment residents begin to see Gangbuk’s living infrastructure as superior, supply shortages and demand concentration in Gangnam will naturally start to ease.

Funding for such efforts could come from trimming populist spending that disappears quickly, such as one-off consumption coupons. Investment in physical infrastructure leaves lasting assets, supports a severely weakened construction sector and creates jobs. More balanced residential development could help curb chronic consumption stagnation and widening asset inequality.

What is needed is bipartisan resolve. Without meaningful change in Gangbuk, housing instability will persist, and Seoul’s urban competitiveness will suffer. The time has come to commit national resources to reshaping Gangbuk with the same determination that once built Gangnam.

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.