What is the average apartment price in South Korea?

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BAMBOOROUTES

A team specialized in real estate investing in APAC countries (Japan, Thailand, 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.

How this content was created 🔎📝

At BambooRoutes, we explore the South Korean real estate market every day. Our team doesn't just analyze data from a distance—we're actively engaging with local realtors, investors, and property managers in cities like Seoul, Busan, and Incheon. This hands-on approach allows us to gain a deep understanding of the market from the inside out.

These observations are originally based on what we've learned through these conversations and our observations. But it was not enough. To back them up, we also needed to rely on trusted resources

We prioritize accuracy and authority. Trends lacking solid data or expert validation were excluded.

Trustworthiness is central to our work. Every source and citation is clearly listed, ensuring transparency. A writing AI-powered tool was used solely to refine readability and engagement.

To make the information accessible, our team designed custom infographics that clarify key points. We hope you will like them! All illustrations and media were created in-house and added manually.

What's the current average apartment price across South Korea?

The national average apartment price in South Korea stands at ₩522 million ($360,000) as of September 2025, with a per-square-meter cost of ₩5.76 million ($3,980).

This national figure represents a significant stabilization after years of rapid growth, particularly following the pandemic-driven surge that peaked in 2022. The current pricing reflects a market that has cooled considerably from its previous highs, with most regions showing minimal growth or slight declines over the past year.

Seoul's influence on national averages cannot be understated, as the capital region accounts for nearly half of the country's population and drives much of the premium pricing. When Seoul is excluded from calculations, the national average drops substantially, highlighting the stark divide between the capital and regional markets.

Regional variations are dramatic, with some areas in outer cities offering apartments for as little as ₩250 million ($175,000), while Seoul's premium districts command prices exceeding ₩2.8 billion ($1.96 million). This wide range reflects South Korea's concentrated urban development pattern and the premium placed on proximity to economic centers.

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

How do apartment prices differ between Seoul, Busan, Daegu, Incheon, and other regions?

Seoul commands the highest apartment prices in South Korea at ₩13.4 million per square meter, with average units costing ₩1.12-1.3 billion ($770,000-$913,500).

City	Price per sqm	Average Apartment Price	Price Premium vs National
Seoul	₩13.4 million	₩1.12-1.3 billion	+133%
Busan	₩6.69 million	₩422-500 million	+16%
Daegu	₩6.7 million	₩422-500 million	+16%
Incheon	₩5.64-7.2 million	₩350-400 million	-2% to +25%
Gwangju	₩4.2 million	₩280-320 million	-27%
Daejeon	₩4.5 million	₩300-350 million	-22%

What's the price breakdown between luxury, mid-range, and budget apartments?

Luxury apartments in Seoul's premium districts like Gangnam and Seocho range from ₩1.9-2.8 billion ($1.4-1.96 million), representing 2-3 times the city average.

Mid-range apartments in districts like Mapo, Yongsan, and Jung-gu typically cost ₩1.0-1.5 billion ($700,000-$1 million). These areas offer good connectivity and amenities while avoiding the extreme premiums of the most prestigious neighborhoods.

Budget apartments in Seoul's outer districts such as Nowon and Dobong range from ₩600-900 million ($420,000-$630,000). In regional cities, budget options in areas like Busan's Geumjeong-gu or Incheon's outer areas can be found for ₩250-350 million ($175,000-$210,000).

Apartment building types significantly impact pricing within each category. High-rise developments command 20-30% premiums over other types due to modern amenities and prestige. Villas cost 30-40% less than high-rises in the same area, while officetels (studio-office hybrids) trade at 10-20% discounts to traditional apartments.

The luxury segment shows the most price volatility and regional variation, with luxury apartments in Busan's Haeundae district costing ₩800 million-1.2 billion ($560,000-$840,000), still well below Seoul's premium pricing.

How do apartment prices vary by size and surface area?

Apartment pricing in South Korea follows clear patterns based on unit size, with larger units commanding premium per-square-meter rates in Seoul while showing more linear pricing in regional cities.

In Seoul, studio apartments (30-40m²) average around $827,000, while 2-bedroom units (50-60m²) cost $500,000-$600,000. Standard 3-bedroom apartments (84m²) reach approximately $1,020,000, with larger units (135m²+) exceeding $1.94 million.

Regional pricing shows more affordable entry points across all sizes. Nationally, studios average $350,000, 2-bedroom units cost $280,000-$350,000, and 3-bedroom apartments average around $290,000. This regional pricing makes homeownership significantly more accessible outside the capital.

Luxury units exceeding 200m² command $3+ million in Seoul and $1.5+ million in other major cities. These larger apartments often include premium finishes, private elevators, and exclusive amenities that justify substantial per-square-meter premiums.

The size premium effect is most pronounced in Seoul's central districts, where scarcity drives up pricing for larger units disproportionately. Regional markets show more linear scaling, making larger family apartments relatively more affordable compared to Seoul's compressed pricing structure.

What's the total cost of buying an apartment including taxes, fees, and other expenses?

Total apartment purchase costs in South Korea range from 2.2% to 14.1% above the listed price, depending on property value, buyer status, and location.

Acquisition taxes range from 1% to 3.5% of the purchase price, with higher rates applied to multiple property purchases and luxury apartments. Legal and registration fees add another 0.5% to 1%, while real estate agent fees contribute 0.4% to 0.9% to the total cost.

Foreign buyers face additional restrictions and costs, with loan-to-value ratios limited to 40-50% compared to 40-70% for residents. This means foreign buyers must prepare larger down payments, typically 50-60% of the purchase price.

Annual ongoing costs include property taxes ranging from 0.07% to 5% of assessed value, with luxury properties and multiple ownership situations facing higher rates. Monthly maintenance fees typically range from ₩100,000 to ₩500,000 ($70-$350), depending on building amenities and services.

Transaction costs create significant barriers to frequent trading, encouraging longer-term ownership strategies. The total roundtrip cost of buying and selling can reach 6-20% of property value, making short-term speculation economically challenging.

How do mortgage rates and financing options affect the real cost of apartment ownership?

Mortgage rates in South Korea currently range from 3% to 5% as of September 2025, with both fixed and variable options available around 3.9-4%.

Loan-to-value ratios significantly impact accessibility, with Korean residents qualifying for 40-70% financing while foreigners face stricter 40-50% limits. This means foreign buyers must prepare substantially larger down payments, often 50-60% of the purchase price.

Mortgage terms extend up to 30 years for qualified borrowers, though non-residents face stricter qualification requirements and shorter term options. The approval process typically requires extensive documentation of income, employment, and financial stability.

Rising interest rates have cooled buyer enthusiasm compared to the ultra-low rate environment of 2020-2021, when rates below 2% fueled rapid price appreciation. Current rates represent a normalization that has contributed to market stabilization.

Monthly payments on a ₩1 billion apartment with 50% financing at 4% interest would cost approximately ₩2.4 million ($1,660) monthly over 30 years. This payment level requires careful consideration of income stability and other financial obligations.

Can you give concrete examples of recent apartment purchase prices in different cities?

Recent apartment purchases across South Korea demonstrate the significant price variations between premium and budget markets.

1. **Seoul Premium Districts**: 84m² apartments in Gangnam sold for ₩2.8 billion ($1.96 million), while similar units in Seocho's Raemian One Bailey reached ₩2.5 billion ($1.7 million)2. **Seoul Mid-Market**: 84m² units in emerging areas like Mapo, Seongsu, and Yongsan traded between ₩1.2-1.5 billion ($830,000-$1.1 million)3. **Seoul Budget Areas**: Outer districts like Nowon showed 84m² apartments selling for ₩700-900 million ($480,000-$620,000)4. **Busan Luxury**: Premium 84m² apartments in Haeundae commanded ₩800 million-1.2 billion ($560,000-$840,000)5. **Regional Budget Options**: Busan's Geumjeong-gu and other outer areas offered apartments for ₩250-350 million ($175,000-$210,000), while central Incheon units cost ₩350-400 million ($245,000-$280,000)

These examples illustrate how location within cities matters as much as the city itself, with premium districts commanding multiples of budget area pricing even within the same metropolitan area.

Which areas are currently the most expensive, up-and-coming, and budget-friendly?

The most expensive apartment markets center on Seoul's established premium districts of Gangnam, Seocho, Songpa, and Yongsan, where luxury units regularly exceed ₩2 billion ($1.4 million).

Up-and-coming areas showing strong appreciation potential include Yongsan's redevelopment zones, Mapo's creative districts, Seongsu's tech hub transformation, and Pangyo's business center expansion. These areas benefit from new infrastructure investments, particularly the GTX rail system expansion, which dramatically improves connectivity to central Seoul.

Budget-friendly options remain available in Seoul's outer districts like Nowon and Dobong, as well as regional cities including Gwangju, Daejeon, and Daegu. Busan's Geumjeong district offers particularly attractive entry-level pricing for those seeking coastal city living.

Emerging infrastructure corridors along new rail lines present compelling opportunities for buyers seeking appreciation potential. Areas receiving GTX stations or other major transportation improvements typically see property values increase 10-20% within 2-3 years of project announcements.

Regional city centers like Busan's Haeundae or Incheon's Songdo offer premium living at substantial discounts to Seoul pricing while maintaining urban amenities and lifestyle quality.

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 smartest apartment choices for different ownership strategies?

Owner-occupiers should focus on centrally-located or mid-tier districts that balance purchase price, amenities, and appreciation potential over 5-10 year holding periods.

Long-term rental investors find success with officetels and studio apartments near universities and business hubs, which generate stable yields through high occupancy rates. Areas like Hongdae near universities or Gangnam business districts provide consistent rental demand.

Short-term rental opportunities exist in central tourist and business districts including Gangnam, Mapo, and Yongsan, though investors must carefully research local regulations that may restrict short-term rentals in residential buildings.

Resale and capital appreciation strategies should target apartments in redevelopment areas or along new infrastructure corridors. Properties near planned GTX stations or major urban renewal projects offer higher appreciation potential over 3-7 year investment horizons.

Regional city investments work best for buy-and-hold strategies focused on rental yields rather than capital appreciation, as these markets show more stability but limited growth potential compared to Seoul's dynamic pricing environment.

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

South Korean apartment prices show dramatic differences between recent and medium-term performance, reflecting the post-pandemic boom and subsequent cooling.

Over five years (2020-2025), Seoul apartment prices surged 148.5% while Busan increased 51.4%, representing the most significant price appreciation in the country's modern history. This period captured the pandemic-driven surge in housing demand and ultra-low interest rates.

The one-year change (2024-2025) tells a very different story, with Seoul up only 3.6%, Busan down 1.9%, and the national average essentially flat at +0.3%. This dramatic deceleration reflects government cooling measures, rising interest rates, and market normalization.

Peak prices occurred in 2022 for most markets, with subsequent corrections ranging from 5-15% in premium Seoul districts to relative stability in regional markets. The current pricing represents a stabilized market following this correction period.

Regional markets experienced their own cycles, with some smaller cities seeing continued softness as demographic trends favor major metropolitan areas. The price changes reflect South Korea's increasingly bifurcated market between Seoul and everywhere else.

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

What are the price forecasts for South Korean apartments over the next 1, 5, and 10 years?

Short-term forecasts for 2026 predict modest growth of 2-4% in Seoul apartment prices while regional cities remain flat to slightly positive at 0-2% appreciation.

Five-year projections through 2030 anticipate Seoul maintaining 2-5% compound annual growth rates, with the national average growing approximately 0.8% annually. Regional cities face stagnation or slight declines as demographic shifts favor major metropolitan areas.

Ten-year forecasts through 2035 show Seoul's premium districts maintaining stability while rural and smaller city markets contract due to population decline. Major city centers will likely outperform as urbanization continues and South Korea's aging demographics concentrate in service-rich areas.

Structural factors supporting long-term Seoul pricing include limited developable land, continued economic concentration, and infrastructure investments like the GTX system. However, overall market growth will likely moderate compared to historical averages due to demographic headwinds.

Regional market forecasts remain challenging due to population outmigration and industrial shifts, with investment success dependent on specific local economic factors rather than broad market trends.

How do South Korean apartment prices compare to other major global cities?

Seoul apartment prices at $9,250 per square meter position the city as expensive by Asian standards but more affordable than major Western metros.

City	Price per sqm (USD)	Premium vs Seoul	Regional Context
Seoul	$9,250	Baseline	Premium Asian market
Tokyo	$13,000-16,000	+41% to +73%	Most expensive Asian city
Singapore	$12,000-18,000	+30% to +95%	Premium city-state
Taipei	$9,500-12,000	+3% to +30%	Comparable Asian metro
Bangkok	$5,000-7,000	-46% to -24%	Emerging Asian market
New York	$17,000-25,000	+84% to +170%	Premium Western market

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. BambooRoutes - Average Apartment Price per sqm South Korea
2. BambooRoutes - Average Apartment Price South Korea
3. Global Property Guide - South Korea Taxes and Costs
4. The Global Economy - South Korea Mortgage Interest Rate
5. Chosun Business - Finance Report
6. BambooRoutes - Average Apartment Price Seoul
7. BambooRoutes - South Korea Price Forecasts
8. Global Property Guide - South Korea Price History