Seoul Apartment Prices Rose 19 Percent in Past Year

Apartment prices in Seoul rose nearly 19 percent over the past year, according to data from South Korea’s Ministry of Land, Infrastructure and Transport. The increase has coincided with record-low homeownership rates among residents in their 20s and 30s.

President Lee Jae-myung has described housing costs as a central factor in decisions about marriage and childbirth. He has also proposed reducing tax benefits for owners of more than one home and listed his own Seoul apartment for sale below market value.

Woo Ye-wan, a 30-year-old nurse, purchased a 450-square-foot apartment in southeastern Seoul three years ago for 15 times her annual salary. She now spends up to two-thirds of her monthly income on the mortgage and commutes more than an hour each way to work.

For decades many South Koreans have used the jeonse system, under which tenants pay a large upfront deposit—often 80 to 85 percent of the property’s value—in exchange for living rent-free during the lease term. Deposits for Seoul apartments now commonly reach $400,000, prompting more residents to choose monthly rent instead.

Hyojung Lee, an associate professor of urban planning at Seoul National University, said housing has served as a primary investment vehicle for young Koreans for 30 to 40 years. He noted that recent policy changes caused him to cancel plans to purchase a home last year.

Andrew Eungi Kim, a sociology professor at Korea University, said job prospects and housing costs together limit optimism for younger generations. Surveys indicate that many South Koreans view homeownership as an important factor when deciding whether to marry or have children.