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As we reach mid-2025, South Korea's apartment market shows significant price variations across regions, with Seoul commanding premium rates while other major cities offer more affordable options.
Seoul apartment prices average KRW 13.4 million per square meter, making it over twice as expensive as the national average of KRW 5.76 million per square meter, while cities like Busan and Daegu offer apartments at roughly half Seoul's prices with better rental yields for investors.
If you want to go deeper, you can check our pack of documents related to the real estate market in South Korea, based on reliable facts and data, not opinions or rumors.
Seoul dominates South Korea's apartment market with prices averaging KRW 13.4 million per square meter, while regional cities like Busan and Daegu offer more affordable options at around KRW 6.7 million per square meter.
Transaction costs range from 2-14% of property value, and the market shows clear urban-rural price disparities with Seoul expected to continue outperforming other regions over the next decade.
| City | Price per sqm (KRW) | Price per sqm (USD) | 1-Year Change | Investment Rating |
|---|---|---|---|---|
| Seoul | 13,400,000 | 9,250 | +3.6% | Premium/High Growth |
| Busan | 6,690,000 | 4,630 | -1.9% | Moderate/Stable |
| Daegu | 6,713,000 | 4,646 | -0.5% | Budget-Friendly |
| Incheon | 7,200,000 | 4,980 | +2.1% | Emerging/Good Value |
| Gwangju | 4,800,000 | 3,320 | -0.8% | Budget/Low Growth |
| Daejeon | 5,100,000 | 3,530 | +0.3% | Budget/Stable |
| National Average | 5,760,000 | 3,980 | +0.3% | Mixed/Regional Varies |
What is the current average price per square meter for apartments in South Korea?
As of June 2025, the national average apartment price in South Korea stands at KRW 5.76 million per square meter, equivalent to USD 3,980.
This national figure masks significant regional variations, with Seoul commanding the highest prices at KRW 13.4 million per square meter (USD 9,250). This makes Seoul apartments over 2.3 times more expensive than the national average.
The current pricing reflects a stabilizing market after years of rapid growth, particularly in Seoul where prices have moderated from the explosive increases seen between 2020-2022. Major metropolitan areas show more stability compared to the volatile periods of recent years.
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Regional cities and smaller urban areas typically fall below the national average, offering more affordable entry points for both domestic and international buyers looking to enter the South Korean apartment market.
How does the price per square meter vary between major cities like Seoul, Busan, and Daegu?
Seoul dominates the South Korean apartment market with prices significantly higher than other major cities.
Busan, South Korea's second-largest city, shows apartment prices averaging KRW 6.69 million per square meter (USD 4,630), which represents roughly 50% of Seoul's pricing levels. Daegu follows closely with KRW 6.71 million per square meter (USD 4,646).
Within Seoul itself, premium districts like Gangnam can exceed KRW 18 million per square meter (USD 12,400), while emerging areas like Mapo and Yongsan offer relatively better value at KRW 8-10 million per square meter. These emerging districts provide access to Seoul's market without the premium pricing of established luxury areas.
Incheon, part of the greater Seoul metropolitan area, offers a middle ground at approximately KRW 7.2 million per square meter, providing connectivity to Seoul while maintaining more reasonable pricing than the capital itself.
The price disparities reflect economic concentration, with Seoul hosting major corporations, government functions, and higher-paying employment opportunities that support premium apartment valuations.
What are the average total purchase prices for apartments by size including fees and taxes?
| Apartment Size | Seoul Average Price | National Average Price | Total Cost (incl. fees) |
|---|---|---|---|
| Studio/1-bedroom (30-40 sqm) | USD 827,000 | USD 350,000 | Add 2-14% fees |
| 2-bedroom (50-60 sqm) | USD 500,000-600,000 | USD 280,000-350,000 | Add 2-14% fees |
| 3-bedroom (84 sqm) | USD 1,020,000 | USD 290,000 | Add 2-14% fees |
| Large units (135+ sqm) | USD 1,940,000+ | USD 970,000 | Add 2-14% fees |
| Luxury units (200+ sqm) | USD 3,000,000+ | USD 1,500,000+ | Add 5-14% fees |
What are the typical transaction costs, taxes, and ongoing expenses associated with buying an apartment in South Korea?
Acquisition taxes range from 1-12% of the property purchase price, with higher rates applied to luxury properties and multiple property ownership.
Agent and legal fees typically add 0.5-1% of the property value to your transaction costs. Registration fees and other administrative costs contribute additional smaller amounts to the total acquisition expense.
Annual property taxes range from 0.07-5% based on the assessed property value, with higher rates for expensive properties and non-resident owners. Maintenance fees for apartment complexes vary significantly based on amenities and building age.
Total roundtrip costs for buying and eventually selling an apartment range from 2.2-14.1% of the property value, making it important to factor these expenses into your investment calculations. The higher end of this range applies to luxury properties and multiple property owners facing additional tax burdens.
Ongoing expenses include utility costs, building maintenance fees, and property management costs if you plan to rent out the apartment, which can total 2-4% of the property value annually.
How have apartment prices changed compared to 1 year ago and 5 years ago?
Over the past year from 2024 to 2025, Seoul apartment prices have increased by 3.6%, showing continued but moderated growth compared to previous years.
Busan experienced a decline of 1.9% over the same period, reflecting oversupply concerns and reduced investor interest compared to Seoul. Daegu showed minimal movement with slight decreases in most districts.
The national average increased by only 0.3%, essentially remaining flat as regional price declines offset Seoul's gains. This represents a significant cooling from the rapid appreciation seen in previous years.
Looking at the five-year period from 2020-2025, Seoul apartment prices have risen approximately 148.5%, though this explosive growth peaked in 2022 and has since moderated significantly. Busan reached its peak in 2022 and has declined roughly 5% from those highs.
These trends reflect government intervention through cooling measures, interest rate increases, and lending restrictions that have successfully slowed the previously overheated market conditions.
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What are the projected trends for apartment prices in South Korea over the next 1, 5, and 10 years?
For 2025, Seoul apartment prices are expected to rise 2-3% while major regional cities remain flat to slightly positive with increases up to 2%.
The 2026-2030 period shows urban centers like Seoul and Incheon projected to grow at 2-5% compound annual growth rate (CAGR). The national average is expected to increase approximately 0.8% annually, with provincial areas showing minimal growth or slight declines.
Looking toward 2030-2035, continued urban outperformance is expected as demographic trends favor major metropolitan areas. However, national housing demand may peak around 2040 before entering a demographic-driven decline phase.
These projections assume continued economic concentration in Seoul and major urban areas, offset by declining rural populations and aging demographics in smaller cities. Government policies supporting balanced regional development could modify these trends.
Infrastructure investments, particularly the GTX (Great Train Express) rail network expansion, are likely to create new growth corridors around Seoul that could outperform even these projections in specific areas.
What are some real-world examples of apartment purchase prices in popular neighborhoods right now?
In Gangnam, Seoul's most prestigious district, the average apartment price reaches KRW 2.38 billion (USD 1.64 million) for a typical three-bedroom unit.
Mapo and Yongsan districts offer Seoul accessibility at KRW 8-10 million per square meter (USD 5,500-7,000), representing 25-40% savings compared to Gangnam while providing higher rental yields of 3.5-4% versus Gangnam's 2-3%.
In Busan's premium Haeundae district, luxury oceanfront apartments command prices above the city average, with premium units maintaining better resilience than other Busan areas during market downturns.
Seongsu-dong, Seoul's emerging creative district, shows rapid appreciation with apartments now reaching KRW 12-14 million per square meter as the area transforms into a tech and startup hub.
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Which areas in South Korea have the most expensive apartments, which ones are emerging as good investments, and which are the most budget-friendly?
The most expensive apartment areas center on Seoul's premium districts including Gangnam, Seocho, and Yongsan, where prices exceed KRW 15-18 million per square meter.
Emerging investment opportunities include Mapo, Yongsan, and Seongsu districts in Seoul, plus areas along planned GTX rail lines that offer better value with strong appreciation potential. These areas provide access to Seoul's growth while avoiding premium district pricing.
Budget-friendly options include regional cities like Gwangju, Daejeon, and Daegu, where apartments can be purchased for KRW 4-6 million per square meter. Seoul's outer districts and Incheon also provide more affordable entry points while maintaining metropolitan connectivity.
Busan offers mixed opportunities, with some districts showing high inventory levels creating buyer advantages, while premium waterfront areas maintain better resilience and rental demand.
The key consideration for emerging areas is infrastructure development, population growth trends, and employment opportunities that support long-term value appreciation beyond just current pricing levels.
What are the most financially smart options today if you want to live in the apartment long-term?
For long-term living in Seoul, consider non-premium but central districts like Mapo, Yongsan, and Seongsu that offer lifestyle benefits, appreciation potential, and rental income possibilities.
Greater Seoul metropolitan areas including Gyeonggi Province and Incheon provide significantly more space for your money while maintaining good connectivity to Seoul through extensive public transportation networks.
Regional cities suit buyers with lower budgets seeking quieter lifestyles, though these areas typically show slower appreciation and fewer amenities compared to metropolitan areas. Cities like Daejeon and Daegu offer university communities and stable employment bases.
Consider apartment complexes with good management, modern amenities, and proximity to transportation hubs, as these factors significantly impact both living quality and future resale value.
Factor in your employment location, family needs, and lifestyle preferences, as the cost savings from choosing emerging or regional areas can be substantial over a long-term ownership period.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in South Korea versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.
What are the best locations and setups if your plan is to buy an apartment and rent it out short-term or long-term?
Short-term rental success centers on central Seoul locations near business districts, universities, and tourist attractions, particularly Gangnam, Mapo, Yongsan, and Itaewon districts.
Long-term rental investments should focus on areas with planned infrastructure development, such as locations along GTX rail lines, new business hubs, and satellite cities experiencing population growth.
Rental yields vary significantly by location: Gangnam typically delivers 2-3% yields, emerging Seoul districts offer 3.5-4%, while some regional cities can provide 4-5% yields though with higher vacancy risks.
Consider apartment size carefully - smaller units (1-2 bedrooms) often achieve better rental yields and attract more diverse tenant pools including young professionals and students.
It's something we develop in our South Korea property pack.
What are the most strategic options if you want to buy now and resell at a higher price within a few years?
Buy in Seoul's emerging districts like Mapo, Yongsan, and Seongsu, or along new transport corridors for the best appreciation potential over 3-5 years.
Premium areas including Gangnam and Seocho represent the safest investments but require high capital and may show more modest percentage gains given their already elevated pricing levels.
Busan's premium waterfront areas like Haeundae and Marine City offer some resilience and rental income, but likely provide less upside potential compared to Seoul's growth areas.
Focus on properties near major infrastructure projects, particularly GTX stations and new business developments, as these catalysts often drive significant value appreciation when completed.
Consider the timing of purchase relative to interest rate cycles and government policies, as these factors significantly impact short-term price movements and resale opportunities.
How does the apartment price per square meter in South Korea compare with other major cities like Tokyo, Taipei, or Bangkok?
| City | Average Price per sqm (USD) | Relative to Seoul | Market Characteristics |
|---|---|---|---|
| Seoul | 9,250 | Base comparison | High growth, government intervention |
| Tokyo | 13,000-15,000 | 40-60% more expensive | Mature market, stable yields |
| Taipei | 9,500-12,000 | Similar to 30% higher | Limited supply, strong demand |
| Bangkok | 5,000-7,000 | 25-45% less expensive | Higher yields, emerging market |
| Singapore | 12,000-18,000 | 30-95% more expensive | Government restrictions, limited supply |
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Seoul's apartment market continues to lead South Korea's real estate sector, commanding premium prices that reflect the city's economic dominance and limited land supply.
Regional cities offer more affordable alternatives with decent rental yields, while emerging Seoul districts provide the best balance of accessibility and growth potential for most investors.
Sources
- Global Property Guide - South Korea Price History
- BambooRoutes - South Korea Price Forecasts
- BambooRoutes - South Korea Housing Market Forecast
- BambooRoutes - Busan Property Analysis
- Global Property Guide - 1-Bedroom Prices
- Statista - Apartment Purchase Prices by Size
- Chosun Business - Real Estate Analysis
- Global Property Guide - Taxes and Costs
- PWC Tax Summaries - Korea
- BambooRoutes - Buying Property in South Korea