Seoul Apartment Transaction Prices 'Jump' 15%... Biggest Rise Since 2021

Southwest and northwest Seoul see higher sale and jeonse prices in August
Southeast Seoul sees declines in both sale and jeonse prices
Apartment sales and jeonse and monthly rental transactions continue to decline in September

In August, the actual transaction prices of apartments in Seoul rose by more than 15% year on year. This was the largest year-on-year increase recorded so far this year.

Apartments and houses in Songpa-gu, Seoul. Photo by Kang Jinhyung.

An analysis of Korea Real Estate Board data by the Seoul Metropolitan Government on October 22 found that Seoul apartment sale prices rose 0.72% month on month and 15.5% year on year in August. The year-on-year increase was the largest since November 2021.

Prices rose in all residential areas except the southeast. The northeast and central areas recorded particularly strong increases, at 1.54% and 1.06%, respectively.

A Seoul Metropolitan Government official said, "Since the start of this year, price increases have been particularly pronounced in outlying areas of Seoul, including the northeast and southwest," adding that "the rise in prices has spread to the outskirts, accompanied by a shift toward higher-priced housing."

Prices rose across all apartment size categories. In particular, medium-to-large apartments measuring 85-135 sq. m. recorded the highest increase, rising 1.32% month on month.

Seoul Apartment Transaction Price Change Rate, Korea Real Estate Board. Seoul City

In August, actual transaction prices for Seoul apartment leases also rose 0.3% month on month. By area, prices increased in the southwest and northwest.

By size, large apartments measuring more than 135 sq. m. recorded the highest increase, at 2.4% month on month. Medium-to-large apartments measuring 85-135 sq. m. followed, rising 1.5%.

Meanwhile, apartment transaction volumes are falling sharply. Seoul recorded 2,923 apartment transactions in September, down 18.3% from the previous month. A Seoul Metropolitan Government official said, "Transaction volumes have been declining since the surcharge on capital gains tax for owners of multiple homes was reinstated in May," adding that "the figure is below the 3,000-plus transactions recorded in the second half of 2024, when transactions remained subdued, and in November last year, when volumes plunged following the introduction of the land transaction permit system under the October 15 measures."

The official added, "However, transaction volumes could increase further, given that property transactions must be reported within 30 days of the contract date and reports for contracts signed in September will continue to be filed through the end of October."

The share of transactions priced at 1.5 billion won or less had been rising since May, but edged down to 78.1% in September. A Seoul Metropolitan Government official explained, "The share of transactions priced at 1.5 billion won or less temporarily declined in April and May as tax-saving transactions involving high-priced homes increased, but then rose through August as demand from buyers seeking mid- to lower-priced homes came in." The official added, "In September, transaction volumes fell in most autonomous districts, while they edged up in Gangnam-gu and Seocho-gu, causing the share of transactions priced at 1.5 billion won or less to decline somewhat."

Seoul's apartment lease and monthly rental transaction volumes also fell in September. Lease transactions were down 17.9% month on month, while monthly rental transactions declined 6.4%.

This content was produced with the assistance of AI translation services.