What is the average apartment price in South Korea?

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A team specialized in real estate investing in APAC countries (Japan, South Korea, Indonesia, Australia, etc.).

We are a team of financial experts, legal professionals, developers, and local real estate specialists dedicated to helping people like you avoid mistakes when investing in real estate in a foreign place, particularly in South Korea. If you'd like to learn more about us, you can check our presentation page.

What are the different types of apartments available in South Korea and how do their prices vary?

South Korea offers several distinct apartment types, each with different pricing structures and target demographics.

High-rise apartments (아파트, "apateu") represent the most common and expensive option in major cities. These large complexes feature comprehensive amenities including security, parking, gyms, and community facilities. They typically cost 20-30% more than other apartment types due to their modern features and prime locations.

Villas (빌라, "billa") are low-rise buildings of 2-5 stories that offer larger living spaces at lower prices than high-rise apartments. These older buildings often lack modern amenities but provide better value for families seeking more space. Villa prices typically run 30-40% below comparable high-rise apartments in the same area.

Officetels (오피스텔) serve dual residential and office purposes, making them popular with young professionals and singles. These mixed-use buildings offer convenience and modern amenities at moderate prices, typically 10-20% below traditional apartments of similar size.

Studio and one-room apartments (원룸) cater to students and young singles, offering the most affordable entry point into South Korea's housing market at prices 40-60% below standard apartments.

What is the average apartment price across major cities like Seoul, Busan, and Incheon today?

As of June 2025, apartment prices vary dramatically across South Korea's major metropolitan areas.

Seoul maintains its position as the most expensive market, with average apartment prices ranging from 1.12 to 1.3 billion KRW ($770,000 to $913,500) for standard 84-square-meter units. The price per square meter averages 13.4 million KRW ($9,250), making Seoul one of Asia's priciest residential markets.

Busan offers significantly more affordable options, with average apartment prices between 422 to 500 million KRW ($295,000 to $350,000). The coastal city's price per square meter averages 6.69 million KRW ($4,630), representing roughly half of Seoul's pricing levels.

Incheon provides the most budget-friendly option among major cities, with apartment prices ranging from 350 to 400 million KRW ($240,000 to $275,000). At 5.64 million KRW ($3,906) per square meter, Incheon offers substantial savings compared to Seoul while maintaining proximity to the capital region.

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How do apartment prices differ between the most expensive neighborhoods and more budget-friendly or upcoming areas?

Seoul's premium districts command prices that often double or triple the city average, creating stark price disparities across neighborhoods.

How have average apartment prices changed compared to one year ago and five years ago?

South Korea's apartment market has experienced mixed performance over recent years, with Seoul showing continued growth while regional markets face corrections.

Seoul apartment prices increased 3.6% year-over-year from February 2024 to February 2025, demonstrating the capital's market resilience. Over five years (2020-2025), Seoul prices have surged 148.5%, with the average 84-square-meter apartment rising from 594 million KRW to 1.47 billion KRW.

Busan presents a contrasting picture, with prices declining 1.94% over the past year as the market corrects from 2022 peaks. Despite this recent softness, Busan still shows a five-year gain of 51.4% (2020-2025), though prices have dropped approximately 5% from their 2022 highs.

Incheon has maintained steady but modest growth, with prices rising 0.63% year-over-year. The city's conservative price appreciation reflects its position as a secondary market within the Seoul metropolitan area.

These trends highlight Seoul's continued dominance and investment appeal, while regional markets experience natural corrections after rapid pandemic-era growth.

What are the price forecasts for apartment prices in South Korea in 1 year, 5 years, and 10 years?

Real estate analysts project continued but moderated growth for South Korea's apartment market, with significant variations between Seoul and regional cities.

Short-term forecasts (2026) suggest modest growth or stabilization in Seoul and metropolitan areas, with price increases likely capped at 2-4% annually due to government cooling measures and affordability constraints. Regional markets may continue experiencing softness or minimal growth as demand concentrates in major urban centers.

Medium-term projections (2030) anticipate gradual price increases in Seoul driven by persistent demand and limited developable land. Seoul apartment prices could reach 15-18 million KRW per square meter by 2030, representing 3-4% annual growth. Regional cities may see stagnant or declining prices as demographic shifts favor major metropolitan areas.

Long-term outlook (2035) forecasts suggest Seoul will maintain its price premium and investment attractiveness, though growth rates may slow due to market maturity and demographic changes. National averages may see minimal growth as rural and secondary city markets face population decline and reduced demand.

Government policy changes, interest rate movements, and demographic trends will significantly influence these projections.

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What are some recent examples of actual apartment purchase prices in different cities and neighborhoods?

Recent transaction data from 2025 provides concrete examples of apartment pricing across South Korea's major markets.

In Seoul's ultra-premium Gangnam district, an 84-square-meter apartment recently sold for 2.8 billion KRW ($1.96 million), representing the top tier of the Seoul market. Standard Seoul apartments of similar size average 1.46 billion KRW ($1.02 million), while budget areas like Nowon see transactions around 700-800 million KRW ($490,000-$560,000).

Busan's luxury Haeundae waterfront district shows apartment sales ranging from 800 million to 1.2 billion KRW ($560,000-$840,000) for 84-square-meter units. The city's average reflects 422 million KRW ($295,000), with budget districts like Geumjeong-gu seeing transactions as low as 250-300 million KRW ($175,000-$210,000).

Incheon's city center apartments typically transact between 350-400 million KRW ($245,000-$280,000), while outer districts offer options from 200-300 million KRW ($140,000-$210,000). These prices reflect Incheon's role as an affordable alternative within the greater Seoul area.

These examples demonstrate the significant price variations possible within single cities based on location, building quality, and local amenities.

What is the typical price per square meter for apartments depending on size and location?

Price per square meter varies significantly across South Korea based on location, apartment size, and building characteristics.

What are the additional costs when buying an apartment, including taxes, legal fees, and maintenance fees?

Purchasing an apartment in South Korea involves several additional costs beyond the purchase price that buyers must factor into their budget.

Acquisition tax represents the largest additional expense, ranging from 1% to 3.5% of the purchase price depending on the buyer's ownership status and property value. First-time buyers often qualify for reduced rates, while multiple property owners face higher taxation.

Legal and registration fees typically cost 0.5% to 1% of the purchase price, covering property transfer documentation, title searches, and government registration requirements. Real estate agent fees are capped by law at 0.4% to 0.9% of the transaction value, depending on the property price range.

Ongoing maintenance fees vary significantly based on building amenities and services. Basic apartments charge 100,000-200,000 KRW ($70-$140) monthly, while luxury complexes with extensive facilities can require 300,000-500,000 KRW ($210-$350) monthly.

Additional expenses include VAT for new construction purchases, moving costs, parking fees (often separate from apartment purchases), and potential utility deposits. These combined costs typically add 3-6% to the total acquisition expense.

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 mortgage conditions and financing options available for buying an apartment in South Korea?

South Korea's mortgage market offers various financing options, though conditions depend significantly on the buyer's residency status and financial profile.

Loan-to-Value (LTV) ratios typically range from 40% to 70% for residents, meaning buyers must provide 30-60% down payments. Non-resident buyers face stricter requirements with LTV ratios often capped at 40-50%, requiring larger initial investments.

Interest rates currently range from 3% to 5% for qualified borrowers, with both fixed and floating rate options available. Loan terms extend up to 30 years, though longer terms may require higher down payments or stronger financial credentials.

South Korea's unique Jeonse system offers alternative financing options through specialized Jeonse loans. These loans help buyers finance large lump-sum deposits required for this traditional rental arrangement, which can serve as a stepping stone to ownership.

Mortgage approval requires comprehensive documentation including proof of income, credit checks, residency verification, and professional property appraisals. Foreign buyers must additionally provide visa documentation and may face enhanced scrutiny of income sources.

Government programs occasionally offer preferential rates for first-time buyers or specific demographic groups, though availability varies based on policy priorities.

What are the smartest areas to buy an apartment in today based on price trends and future value potential?

Strategic apartment purchases in South Korea should focus on areas with strong fundamentals and growth catalysts for optimal long-term returns.

Seoul's Gangnam, Seocho, Yongsan, and Songpa districts represent the safest investment choices despite premium pricing. These areas consistently demonstrate price appreciation, strong rental demand, and infrastructure advantages that support long-term value growth.

Emerging opportunities exist in Seoul's redevelopment zones and new town projects like Pangyo and areas around major infrastructure developments. These locations offer entry points below prime district pricing while benefiting from government investment and urban planning initiatives.

Busan's Haeundae and Marine City districts provide luxury market exposure with potential for recovery as the regional market stabilizes. Budget districts in Busan may offer value opportunities for investors willing to wait for market cycles to improve.

Incheon areas near transportation hubs, particularly those connected to Seoul via subway or express rail, present growth potential as the greater Seoul metropolitan area continues expanding.

Investment strategies should prioritize locations with multiple growth drivers: transportation access, employment centers, educational facilities, and government development plans.

Which apartment options make the most sense if you want to live there, rent it out (short or long term), or sell it later for a profit?

Different apartment types and locations serve distinct investment and lifestyle objectives in South Korea's diverse property market.

For owner-occupiers seeking primary residences, high-rise apartments in central Seoul or major city centers provide optimal convenience, amenities, and lifestyle benefits. These properties offer comprehensive facilities, security, and proximity to employment and cultural centers, though they require significant financial commitment.

Long-term rental investors should focus on officetels and studio apartments in university districts, business areas, and transportation hubs. These properties generate steady rental income from students and young professionals, with lower maintenance requirements than larger family apartments.

Short-term rental opportunities exist in officetels near tourist areas and transportation centers, though investors must navigate South Korea's regulatory restrictions on short-term rentals in residential buildings. Tourist-focused areas like Gangnam, Hongdae, and Myeongdong offer potential despite regulatory constraints.

Resale and capital appreciation strategies should target premium apartments in Gangnam, Seocho, and major redevelopment zones. These properties historically demonstrate strong price appreciation and liquidity, making them suitable for investors prioritizing capital gains over rental income.

It's something we develop in our South Korea property pack.

How do average apartment prices in South Korea compare to other large cities like Tokyo, Singapore, or New York?

South Korea's apartment market positions itself as more affordable than most major global cities while still representing significant investment requirements.

Seoul's pricing makes it more accessible than top-tier global cities while offering exposure to Asia's dynamic economy. However, Seoul has experienced some of the fastest price growth among OECD countries over the past decade, raising affordability concerns for local residents.

Regional South Korean cities offer significantly better value propositions than their international counterparts, though they may lack the global connectivity and economic diversity of major international centers.

It's something we develop in our South Korea property pack.

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.

Sources

1. Housing Types in Korea
2. Different Housing Types in Korea
3. IBS Housing Types
4. South Korea Price Forecasts
5. Global Property Guide South Korea
6. Korea Herald Real Estate Report
7. Busan Property Analysis
8. Statista Seoul Apartment Prices
9. Global Property Guide Square Meter Prices
10. South Korea Housing Market Forecast