What is the average property price in South Korea?

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Who is the author of this content?

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 property price across South Korea?

As of September 2025, the national average property price in South Korea stands at KRW 5.76 million per square meter (USD 3,980).

Seoul dominates the market with an average of KRW 13.4 million per square meter (USD 9,250), making it the most expensive city in the country. This represents more than double the national average and reflects the capital's economic importance and limited land availability.

Regional cities show more moderate pricing, with Busan at KRW 6.7-6.9 million per square meter (USD 4,630), Daegu at KRW 6.7 million per square meter (USD 4,646), and Incheon at KRW 5.6-5.7 million per square meter (USD 3,900). These prices reflect each city's economic significance and infrastructure development.

The price gap between Seoul and other cities has widened over recent years, with Seoul commanding prices 2-2.5 times higher than other major urban centers. This disparity reflects the concentration of economic opportunities, educational institutions, and government functions in the capital region.

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

How do average prices differ between apartments, houses, villas, and commercial properties?

Apartments command the highest prices in South Korea's residential market, particularly in Seoul where the citywide average reaches KRW 1.3 billion (USD 896,000).

In premium areas like Gangnam, three-bedroom apartments can reach KRW 2.8 billion (USD 1.93 million), representing the pinnacle of residential pricing. These high-rise units are preferred due to security, amenities, and prestige factors that drive premium valuations.

Detached houses in Seoul average KRW 1.14 billion (USD 785,000), making them slightly more affordable than premium apartments but still expensive compared to regional alternatives. Villas and row houses represent the most budget-friendly option, with slower price growth of just 0.5% year-over-year, making them attractive for cost-conscious buyers.

Commercial properties vary significantly by location and building grade, with Seoul's Grade-A office market commanding premium rents. The commercial real estate market represents USD 27.3 billion in value, concentrated in Seoul, Incheon, and Busan's business districts.

What are the most expensive areas to buy property and what makes them attractive?

Gangnam, Seocho, and Yongsan districts in Seoul represent South Korea's most expensive property markets, with prices exceeding KRW 18 million per square meter (USD 12,400).

District	Key Attractions	Price Premium Factors
Gangnam	Business hub, luxury shopping, top schools	Prestige, connectivity, amenities
Seocho	Government offices, law firms, education	Professional concentration, stability
Yongsan	International business, expat community	Global accessibility, development
Busan Haeundae	Beachfront properties, tourism hub	Waterfront location, lifestyle amenities
Cheongdam-dong	Luxury brands, entertainment district	Cultural significance, exclusivity

These areas attract premium pricing due to their combination of economic opportunities, educational excellence, transportation connectivity, and lifestyle amenities. The concentration of multinational corporations, top-tier schools, and cultural institutions creates sustained demand that supports high valuations.

Which areas are considered up-and-coming or budget friendly right now?

Dongtan New Town in Hwaseong and Pangyo Techno Valley in Seongnam lead South Korea's emerging property markets, offering significant value compared to central Seoul.

1. **Dongtan New Town (Hwaseong)**: Fast rail connections to Seoul, planned infrastructure development, popular with young professionals and families2. **Pangyo Techno Valley (Seongnam)**: Technology hub, major corporate headquarters, strong rental demand from tech workers3. **Gwanggyo New Town (Suwon)**: Investor-focused development, infrastructure growth, educational facilities4. **Outer Seoul districts (Nowon, Dobong)**: More affordable entry points, higher rental yields, established neighborhoods5. **Gentrifying Seoul areas (Mapo, Yeonnam, Seongsu)**: Cultural transformation, young demographic, artistic communities6. **Satellite cities with KTX access**: Improved connectivity driving property appreciation

These areas benefit from government investment in transportation infrastructure, planned city development, and proximity to Seoul's job market while maintaining affordability compared to established premium districts.

How do prices vary between major cities like Seoul, Busan, and Daegu, compared to smaller towns?

Seoul's property prices significantly exceed all other South Korean cities, with costs 2-2.5 times higher per square meter than regional alternatives.

Major city comparisons show Seoul apartments in city centers averaging $9,097 per square meter, while Daegu reaches $7,070 per square meter. Busan falls between these figures at approximately $6,500-6,800 per square meter, reflecting its status as South Korea's second-largest city and major port.

Suburban houses show similar patterns, with Seoul averaging $7,229 per square meter compared to Daegu's $6,132 per square meter. This price differential reflects Seoul's economic concentration, with 48% of South Korea's population living in the greater Seoul metropolitan area.

Smaller towns and rural areas typically price 60-70% below Seoul levels, making them attractive for retirees and remote workers. However, limited job opportunities and infrastructure constraints affect long-term appreciation potential in these markets.

What's the average price per square meter, and how does surface size affect total cost?

The national average price per square meter stands at KRW 5.76 million (USD 3,980), but surface size significantly impacts both total cost and per-square-meter pricing.

Larger properties generally offer better value per square meter, with family-sized units (100+ square meters) often priced 10-15% lower per square meter than studio apartments. Central Seoul premium units command top rates regardless of size, while outlying districts like Nowon average KRW 9 million per square meter.

Surface size impacts vary by property type and location. In Gangnam, even small units maintain premium per-square-meter pricing due to location desirability. Conversely, larger family homes in emerging areas like Dongtan offer better square-meter value while providing more space.

The sweet spot for value typically falls in the 60-85 square meter range, balancing affordability with functionality. Properties below 40 square meters or above 150 square meters often carry premiums or discounts that affect overall market efficiency.

When adding taxes, legal fees, and extra costs, what's the real total purchase price?

The total purchase cost in South Korea includes significant additional expenses beyond the property's listed price, typically adding 5-8% to your final investment.

Cost Type	Rate Range	Notes
Acquisition Tax	1-12%	Higher for luxury properties and central locations
Legal Fees	0.5-1%	Attorney and document preparation
Agent Fees	0.3-0.6%	Real estate brokerage commission
Registration Fees	0.2-0.4%	Government registration and stamps
Annual Property Tax	0.07-5%	Ongoing ownership cost

Metropolitan areas and luxury properties face higher acquisition taxes, with Seoul's premium districts potentially reaching the upper tax brackets. The combined buyer and seller transaction costs can total 2.2-14.1% of the property value, making careful budgeting essential.

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

How do mortgages work in South Korea, and what's the typical cost of financing a purchase?

South Korean mortgages require substantial down payments, with loan-to-value ratios typically capped at 70% for first-time buyers and often lower for foreign purchasers.

Resident buyers can access mortgages through major banks like Kookmin and Shinhan, with down payments ranging from 30-60% of the property value. Foreign buyers face stricter requirements, including long-term visa status, Korean income history, and established credit relationships with local banks.

Interest rates in 2025 average 3.7-4.5% for 10-30 year terms, available in both variable and fixed-rate options. New government rules implemented mid-2025 include loan caps, stricter property evaluations, and requirements to move into purchased properties within six months.

The Korean mortgage system includes unique features like jeonse (key money deposits) that can complement traditional financing. State guarantees on loans have been reduced under recent policy changes, making private financing more important for property purchases.

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.

If I'm buying to live in the property, what are the smartest choices today?

For owner-occupiers in 2025, mid-tier and emerging Seoul districts offer the best combination of value, quality of life, and future appreciation potential.

Mapo, Yongsan, Seongsu, and Yeonnam districts provide excellent lifestyle amenities while remaining more affordable than premium areas like Gangnam. These neighborhoods offer cultural attractions, dining options, and proximity to employment centers without the extreme pricing of traditional luxury districts.

Budget-conscious buyers should consider outer Seoul districts like Nowon and Dobong, which provide established infrastructure, good schools, and transportation links while maintaining affordability. Satellite cities with growing infrastructure like Suwon, Gwanggyo, and Dongtan offer even better value with planned development benefits.

First-time buyers should prioritize areas with strong transportation links to Seoul's business districts, ensuring career flexibility and resale potential. Properties near subway stations typically maintain better value and offer superior daily convenience for commuting professionals.

If I'm buying to rent out, what are the pros and cons of short-term vs long-term rentals?

Short-term rentals offer higher potential yields but require more active management and face increasing regulatory scrutiny in South Korea's major cities.

Studios and officetels (mini-apartments) in central locations generate 5.5-7.0% gross yields through short-term rental platforms, particularly in business districts and near universities. However, higher tenant turnover, cleaning costs, and platform fees reduce net returns while requiring constant property management attention.

Long-term rentals provide stability with 1-3 bedroom apartments generating 3.9-6.6% gross yields in desirable areas. The traditional Korean jeonse system (large key money deposits) can provide immediate capital while ensuring long-term tenant stability, though this system has been declining in popularity.

Detached houses typically generate lower yields (2.7-3.5%) but appeal to family renters seeking longer tenancies. Professional property management becomes essential for short-term rentals but optional for long-term arrangements, affecting overall investment returns and time commitment requirements.

If I'm buying to resell later, which areas or property types have the strongest growth potential?

For capital appreciation, emerging new towns and gentrifying Seoul neighborhoods offer the strongest growth potential over the next 5-10 years.

1. **Pangyo Techno Valley**: Technology sector growth, corporate headquarters expansion, highly educated demographics2. **Dongtan New Town**: Planned infrastructure completion, transportation improvements, family-oriented development3. **Gwanggyo New Town**: Government investment, educational facilities, proximity to Seoul4. **Seongsu and Yeonnam (Seoul)**: Cultural transformation, artistic communities, young professional influx5. **Areas along new rail lines**: Transportation infrastructure drives property appreciation6. **University districts**: Consistent rental demand supports property values

Gangnam properties offer capital preservation but limited upside due to already premium pricing. Emerging areas benefit from infrastructure investment, demographic shifts, and development momentum that create conditions for sustained appreciation.

Properties near planned transportation projects, including KTX extensions and subway line expansions, historically show strong appreciation as infrastructure completion approaches. New town developments typically appreciate 20-40% during their development phase before stabilizing.

How have property prices changed compared to 5 years ago, 1 year ago, and what's the forecast for the next 1, 5, and 10 years—and how does this compare with other big global cities?

South Korean property prices experienced dramatic growth from 2020-2021, with double-digit annual increases exceeding 10% in major cities during the pandemic boom period.

Compared to five years ago (2020), Seoul property prices have increased 40-60% in many districts, driven by low interest rates, government stimulus, and pandemic-related housing demand. One year ago (2024), the market cooled significantly from previous peaks as government cooling measures and higher interest rates slowed speculation.

Current trends show Seoul prices rising 3.6-3.8% year-over-year in 2025, while the national average increases just 0.3% (slightly negative in real terms after inflation). This stabilization reflects policy interventions and economic uncertainty affecting buyer sentiment.

Forecasts for 2025-2026 predict Seoul prices rising 5-10% annually, outpacing regional cities that remain flat or soft. Over 5-10 years, Seoul likely maintains premium growth similar to global superstar cities like Tokyo, Sydney, and London, though less dramatic than the past decade's expansion.

South Korea shows the highest urban-rural price gap among OECD countries, with this disparity expected to continue as economic opportunities concentrate in the Seoul metropolitan area. This trend mirrors global patterns but appears more pronounced than most developed economies.

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. Global Property Guide - South Korea Price History
2. BambooRoutes - Average House Price South Korea
3. BambooRoutes - South Korea Price Forecasts
4. BambooRoutes - Average Apartment Price per SQM Seoul
5. BambooRoutes - South Korea Housing Market Forecast
6. BambooRoutes - South Korea Real Estate Trends
7. Mordor Intelligence - South Korea Office Real Estate Market
8. Statista - South Korea Commercial Real Estate
9. BambooRoutes - South Korea Which Area
10. Global Property Guide - South Korea Taxes and Costs