What is the average price per sqm 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 is the average price per square meter in South Korea right now?

The national average apartment price in South Korea stands at KRW 5.76 million per square meter as of September 2025.

Seoul significantly exceeds this national average at KRW 13.4 million per square meter, representing 2.3 times the national rate. This premium reflects Seoul's status as the economic and cultural center of South Korea, with high demand from both domestic and international buyers.

Regional cities offer more affordable options, with Busan and Daegu averaging around KRW 6.7 million per square meter, while Incheon reaches KRW 7.2 million per square meter. Gwangju presents even better value at KRW 6 million per square meter.

Smaller provincial cities typically fall below KRW 5 million per square meter, making them attractive entry points for first-time buyers or investors seeking higher rental yields relative to purchase prices.

How do prices differ between apartments, houses, and luxury properties?

Apartments dominate the South Korean property market and command the highest prices per square meter in prime locations.

Standard apartments nationwide average KRW 5.76 million per square meter, while Seoul apartments reach KRW 13.4 million per square meter. Luxury apartments in premium Seoul districts like Gangnam, Seocho, and Songpa command between KRW 25-40 million per square meter.

Detached houses in Seoul average KRW 1.14 billion total, generally offering lower price per square meter compared to top-tier apartments due to land costs and lower density. Villas, which are mid-size multipurpose dwellings, provide the most affordable option at an average of KRW 352 million total.

Studio apartments present an interesting pricing dynamic, often showing higher per-square-meter costs due to premium pricing for compact urban living, especially in central Seoul where they can reach KRW 10-14 million per square meter.

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

Which cities and neighborhoods are the most expensive, which are more affordable, and which areas are considered up-and-coming?

Seoul's Gangnam, Seocho, Songpa, Yongsan, and Gangdong districts represent the most expensive areas in South Korea.

Category	Areas	Price Range (KRW/sqm)	Key Features
Most Expensive	Gangnam, Seocho, Songpa	25-40 million	Premium shopping, business districts
Up-and-Coming	Mapo, Yongsan (Seoul)	15-20 million	Redevelopment, transit upgrades
Affordable Major Cities	Busan, Daegu, Incheon	6-7 million	Good infrastructure, lower costs
Budget Options	Gwangju, Daejeon	4-6 million	Strong local rental demand
Provincial Cities	Smaller regional centers	Under 5 million	Entry-level investment opportunities

Can you give some example purchase prices for typical properties across different regions?

Property prices vary significantly across South Korea's major cities, with Seoul commanding premium rates and regional cities offering value opportunities.

In Seoul, a typical 85-square-meter apartment costs around KRW 1.14 billion, while a studio apartment averages KRW 400 million. Luxury 100-square-meter apartments in prime districts exceed KRW 2.5 billion.

Busan and Daegu offer similar pricing at around KRW 570 million for 85-square-meter apartments, with studios at approximately KRW 250 million and luxury properties starting from KRW 1 billion.

Gwangju presents excellent value with 85-square-meter apartments at KRW 510 million and studios at KRW 200 million. Incheon falls in the middle range at KRW 612 million for standard apartments.

Daejeon represents the most affordable major city option, with 85-square-meter apartments at KRW 434 million and studios at just KRW 180 million, making it attractive for budget-conscious investors.

How does the price per square meter change with property size — for small studios versus larger family homes?

Smaller properties typically command higher prices per square meter due to premium pricing for compact urban living.

Studios and one-room apartments in central Seoul often reach KRW 10-14 million per square meter, exceeding the area average due to high demand from young professionals and students. This reflects the convenience premium for smaller, centrally located units.

Larger family homes generally show lower per-square-meter costs due to economies of scale, though total purchase prices are significantly higher. A 100-square-meter apartment might average KRW 13.4 million per square meter in Seoul, while a 150-square-meter unit could drop to KRW 11-12 million per square meter.

Luxury properties break this pattern, with large premium apartments in Gangnam maintaining high per-square-meter prices regardless of size due to exclusivity and prime location factors.

The size premium becomes less pronounced in regional cities, where larger properties offer better value without the extreme central Seoul location premiums.

What is the total cost of buying a property including fees, taxes, and other charges?

Total transaction costs for property buyers in South Korea range from 1.9% to 13.6% of the property value.

1. **Transfer tax**: 1-12% depending on property value and type2. **Legal fees**: 0.5-1% of property value 3. **Real estate agent commission**: 0.3-1.1%, typically shared between buyer and seller4. **Registration tax**: 1-12% based on property characteristics5. **VAT on new properties**: 10% additional cost6. **Property inspection and appraisal**: KRW 500,000-2 million

Annual property taxes add 0.07-5% of property value yearly, with higher rates applying to luxury properties and non-owner-occupied investments. Foreign buyers face additional compliance requirements and may encounter stricter lending terms.

For a KRW 1 billion Seoul apartment, expect total closing costs of KRW 50-100 million beyond the purchase price, making proper budgeting essential for international buyers.

How do mortgages work in South Korea, and what is the typical monthly cost for buyers?

South Korean mortgages currently average 3.98% interest rates as of September 2025, with stricter lending standards for foreign buyers.

Local buyers typically access 70-80% loan-to-value ratios, while foreigners are limited to 40-60% depending on residency status and property location. New regulations require stronger residency proof and limit speculative buying.

For a KRW 1 billion Seoul apartment with a 20-year mortgage at 4% interest, monthly payments reach approximately KRW 6 million for principal and interest, before taxes and insurance.

Mortgage requirements include credit checks, stable income verification, and residency documentation. Banks prefer borrowers with established Korean credit history and long-term residency plans.

Recent market trends show more restrictive lending for investment properties, with banks favoring owner-occupied purchases and established residents over speculative foreign investment.

What are the best options if you want to live in the property yourself compared to renting it out short term, long term, or buying to resell later?

Owner-occupied properties receive more favorable tax treatment and stronger legal protections in South Korea.

Long-term rental investments offer steady returns of 2.5-4.3% annually, with strong demand in university areas and business districts. Seoul, Busan, and emerging areas like Mapo provide reliable rental markets.

Short-term rentals through platforms like Airbnb show growth potential but face increasing regulations, particularly in residential zones. Higher yields are possible in expat-heavy areas and tourist districts.

Resale opportunities favor Seoul's premium districts and emerging areas like Mapo and Yongsan, where infrastructure development and demographic shifts drive price appreciation. These areas benefit from younger buyer interest and urban renewal projects.

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

How have property prices changed compared with five years ago, and compared with just one year ago?

Seoul property prices increased by 3.6% over the past year, while Busan and Daegu declined by 2%, and the national average rose by 0.3%.

Over the past five years since 2020, Seoul has experienced significant growth of 15-30%, with peak increases occurring in 2021-2022 before stabilizing. This reflects strong demand during the pandemic and subsequent market maturation.

Regional cities show mixed performance, with some areas stagnating or declining after 2022 peaks. This creates opportunities for value-oriented buyers in markets that have corrected from previous highs.

The current market shows stabilization after rapid pandemic-era growth, with Seoul maintaining modest appreciation while regional markets adjust to more sustainable levels.

Emerging Seoul districts like Mapo and Yongsan continue showing stronger growth than established premium areas, reflecting changing buyer preferences and infrastructure development.

What are the smartest choices for buyers and investors in the market today?

Seoul's emerging districts of Mapo and Yongsan offer the best combination of growth potential and relative affordability for long-term investors.

1. **Premium stability**: Gangnam and Seocho for high-end buyers seeking stable luxury demand and resale potential2. **Growth opportunities**: Mapo and Yongsan districts benefiting from redevelopment and younger demographic trends 3. **Balanced value**: Busan and Incheon providing affordable entry with rental demand4. **Budget-friendly**: Gwangju and Daejeon for maximum affordability with strong local rental markets5. **Infrastructure plays**: Areas near new transit lines and urban development projects

Current market conditions favor buyers who can identify undervalued areas with strong fundamentals rather than chasing premium districts at peak prices. Regional cities offer better rental yields for income-focused investors.

What is the forecast for property prices over the next one year, five years, and ten years?

Short-term forecasts show modest growth in Seoul with stabilization in regional markets over the next year.

Seoul and adjacent high-growth districts are expected to lead price appreciation over the next five years, driven by continued urbanization and infrastructure projects. However, rising global interest rates and potential local oversupply present risks to rapid growth.

Ten-year projections favor continued urbanization trends, with Seoul and major metropolitan areas outperforming rural regions. Luxury properties and technology-driven new districts are expected to show strong performance.

Demographic shifts toward urban centers support long-term price growth in major cities, while some peripheral and rural areas may experience relative decline due to population migration patterns.

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

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.

How do property prices in South Korea compare with other major international cities?

Seoul's average price of KRW 13.4 million per square meter ($9,272) positions it as more expensive than most Asian cities but cheaper than global prime markets.

City Comparison	Price per sqm (USD)	Relative Position	Market Characteristics
Seoul Average	$9,272	Premium Asian market	Stable, high demand
Seoul Luxury	$17,300-27,700	Global tier 1 comparable	Matches London, NYC, Paris
Busan/Daegu	$4,630	Mid-tier global cities	Like Barcelona, Berlin, Toronto
Regional Cities	Under $3,460	Emerging market prices	Value opportunities

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. Global Property Guide - South Korea Price History
2. BambooRoutes - Average Apartment Price per sqm South Korea
3. BambooRoutes - Seoul Price Forecasts
4. BambooRoutes - Gwangju Property
5. Enko - Types of Housing in South Korea 2025
6. BambooRoutes - Seoul Real Estate Trends
7. Global Property Guide - South Korea Buying Guide
8. The Global Economy - South Korea Mortgage Interest Rate