Authored by the expert who managed and guided the team behind the South Korea Property Pack
Yes, the analysis of Seoul's property market is included in our pack
Seoul is a low-yield, high-price residential market by global standards, and that is completely normal for a major capital city with strong demand.
In early 2026, rental yields in Seoul are being pushed slightly upward by rising monthly rents and a growing shift from jeonse deposits to monthly rent (wolse) structures.
We constantly update this blog post so you always have access to the freshest data on Seoul rental yields.
And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in Seoul.
Insights
- Seoul's average gross rental yield sits around 3.4% in early 2026, which is typical for expensive capital cities where property prices outrun rents.
- The ongoing shift from jeonse deposits to monthly rent contracts is making cash yields more visible for Seoul landlords, especially for smaller units.
- High-yield districts like Guro-gu and Geumcheon-gu can deliver gross yields of 4% to 5.5%, while prime areas like Gangnam-gu often stay below 3%.
- Net rental yields in Seoul typically drop to around 2.3% after accounting for property taxes, repairs, insurance, and vacancy buffers.
- Studios and small one-bedroom units in Seoul deliver the highest gross yields (4% to 6%), but they come with higher tenant turnover.
- Seoul's vacancy rate hovers around 3%, which is tight by global standards, thanks to strong renter demand and limited housing supply.
- Upcoming projects like the Yongsan International Business District and the Jamsil Sports Complex could boost rents in nearby neighborhoods starting in 2026.
- Property taxes and holding costs in Seoul typically represent 0.10% to 0.25% of market value annually for a standard single-home rental.
What are the rental yields in Seoul as of 2026?
What's the average gross rental yield in Seoul as of 2026?
As of early 2026, the estimated average gross rental yield in Seoul across all common residential property types is around 3.4%.
The realistic range of gross rental yields in Seoul spans from about 2.5% to 4.8%, depending on the neighborhood, unit size, and how much of the rent comes as monthly cash versus jeonse deposits.
Compared to national and global benchmarks, Seoul sits on the lower end because it is a high price-to-rent market, which is typical for expensive capital cities where property values outpace rental income.
The single most important factor influencing gross rental yields in Seoul right now is the structural shift from jeonse deposit contracts to monthly rent (wolse), which is making cash yields more transparent and slightly higher than in previous years.
What's the average net rental yield in Seoul as of 2026?
As of early 2026, the estimated average net rental yield in Seoul is approximately 2.3% after deducting all typical landlord expenses.
The typical difference between gross and net rental yields in Seoul is about 1 percentage point, meaning landlords lose roughly a third of their gross income to operating costs.
The expense category that most significantly reduces gross yield to net yield in Seoul is the combination of property taxes and repair budgets, which hit especially hard because Seoul's high property values make even small percentage costs add up quickly.
The realistic range of net rental yields for standard investment properties in Seoul spans from about 1.6% to 3.4%, with the lower end representing prime luxury apartments and the higher end representing smaller units in outer districts with hands-on management.
By the way, you will find much more detailed rent ranges in our property pack covering the real estate market in Seoul.
We made this infographic to show you how property prices in South Korea compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
What yield is considered "good" in Seoul in 2026?
A gross rental yield of 3.5% to 4.5% is generally considered "good" by local investors in Seoul, since the city's expensive property market naturally compresses returns compared to other locations.
The threshold that typically separates average-performing properties from high-performing ones in Seoul is around 4.5%, and anything above 5% usually comes with trade-offs like older buildings, smaller units, or locations in outer districts with higher tenant turnover.
How much do yields vary by neighborhood in Seoul as of 2026?
As of early 2026, the spread in gross rental yields between the highest-yield and lowest-yield neighborhoods in Seoul is roughly 2.5 to 3 percentage points, ranging from about 2.2% in prime areas to over 5% in outer districts.
The neighborhoods that typically deliver the highest rental yields in Seoul are outer and value districts like Guro-gu, Geumcheon-gu, Jungnang-gu, Nowon-gu, and Dobong-gu, where property prices remain more affordable while renter demand stays steady.
The neighborhoods that typically deliver the lowest rental yields in Seoul are prestige areas like Gangnam-gu (Apgujeong, Daechi), Seocho-gu (Banpo), Yongsan-gu (Hannam, Ichon), and Songpa-gu (prime Jamsil towers), where prices have far outrun rents.
The main reason yields vary so much across Seoul neighborhoods is that property prices swing much more dramatically than rents, so expensive districts end up with compressed yields even when their absolute rents are high.
By the way, we've written a blog article detailing what are the current best areas to invest in property in Seoul.
How much do yields vary by property type in Seoul as of 2026?
As of early 2026, gross rental yields in Seoul range from about 2% for large prime-family apartments to over 6% for small studios or officetels in well-located areas.
The property type that currently delivers the highest average gross rental yield in Seoul is small units like studios and one-bedrooms in officetels or villas, which can reach 4% to 6% thanks to strong demand from singles and couples.
The property type that currently delivers the lowest average gross rental yield in Seoul is large, prime-location family apartments, which often yield only 2% to 3.2% because their high purchase prices are not matched by proportionally higher rents.
The key reason yields differ between property types in Seoul is that rents do not scale up as fast as prices when units get bigger, so smaller units capture more rent per square meter and deliver higher percentage returns.
By the way, you might want to read the following:
What's the typical vacancy rate in Seoul as of 2026?
As of early 2026, the estimated average residential vacancy rate in Seoul is around 3%, which reflects the city's tight housing market and strong renter demand.
The realistic range of vacancy rates across different Seoul neighborhoods spans from about 2% in high-demand transit-adjacent areas to around 5% in less convenient locations or buildings with older stock.
The main factor that currently drives vacancy rates in Seoul is proximity to subway stations and major employment centers, since renters prioritize commute time above most other considerations.
Compared to national and regional averages, Seoul's vacancy rate is lower because the city's population density, job concentration, and limited new supply keep rental demand consistently strong.
Finally please note that you will have all the indicators you need in our property pack covering the real estate market in Seoul.
What's the rent-to-price ratio in Seoul as of 2026?
As of early 2026, the estimated average rent-to-price ratio in Seoul is approximately 0.28% per month, meaning monthly rent equals about 0.28% of the property's purchase price.
A rent-to-price ratio above 0.30% per month is generally considered favorable for buy-to-let investors in Seoul, and this ratio is directly connected to gross rental yield since multiplying the monthly ratio by 12 gives you the annual yield percentage.
Compared to other major cities globally, Seoul's rent-to-price ratio is on the lower end, which is consistent with OECD data showing South Korea as a high price-to-rent market where property values have grown faster than rental income.
We have made this infographic to give you a quick and clear snapshot of the property market in South Korea. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
Which neighborhoods and micro-areas in Seoul give the best yields as of 2026?
Where are the highest-yield areas in Seoul as of 2026?
As of early 2026, the top highest-yield neighborhoods in Seoul include Guro-gu (around Guro Digital Complex), Geumcheon-gu (near Gasan Digital Complex), and Jungnang-gu, all of which benefit from steady renter demand and more affordable property prices.
The estimated average gross rental yield range in these top-performing areas like Guro-gu, Geumcheon-gu, and Nowon-gu is approximately 4% to 5.5%, which is notably higher than Seoul's citywide average.
The main characteristic these high-yield neighborhoods share is that they offer affordable entry prices relative to Seoul's overall market while still maintaining solid rental demand from workers commuting to nearby job clusters or transit hubs.
You'll find a much more detailed analysis of the areas with high profitability potential in our property pack covering the real estate market in Seoul.
Where are the lowest-yield areas in Seoul as of 2026?
As of early 2026, the top lowest-yield neighborhoods in Seoul include Gangnam-gu (Apgujeong, Daechi), Seocho-gu (Banpo), and Yongsan-gu (Hannam, Ichon), where prestige drives prices far above what rents can justify.
The estimated average gross rental yield range in these low-yield areas is approximately 2.2% to 3%, which is below Seoul's citywide average despite the high absolute rents these neighborhoods command.
The main reason yields are compressed in these areas of Seoul is that property prices have been bid up by wealthy buyers seeking prestige and capital appreciation, not rental income, so the price-to-rent ratio becomes unfavorable for yield-focused investors.
Buying a property in a low-yield area is one of the mistakes we cover in our list of risks and pitfalls people face when buying property in Seoul.
Which areas have the lowest vacancy in Seoul as of 2026?
As of early 2026, the top neighborhoods with the lowest residential vacancy rates in Seoul include Jongno-gu and Jung-gu (CBD access), Yeongdeungpo-gu around Yeouido (finance hub), and Mapo-gu (young professional demand plus excellent transit).
The estimated vacancy rate range in these low-vacancy areas is approximately 1.5% to 2.5%, which is tighter than Seoul's already-low citywide average.
The main demand driver that keeps vacancy low in these Seoul neighborhoods is proximity to major employment centers like the CBD, Gangnam Business District, and Yeouido, where workers prefer short commutes and pay a premium for convenience.
The trade-off investors typically face when targeting these low-vacancy areas in Seoul is lower rental yields, because the same demand that fills units quickly also pushes property prices up faster than rents can follow.
Which areas have the most renter demand in Seoul right now?
The top neighborhoods currently experiencing the strongest renter demand in Seoul include Mapo-gu (Hongdae, Hapjeong, Yeonnam areas), Gwanak-gu (near Seoul National University), and Seongdong-gu (Wangsimni with its multi-line subway connections).
The type of renter profile driving most of the demand in these areas is young professionals and students who prioritize transit access, lifestyle amenities, and affordable unit sizes over space.
Rental listings in these high-demand Seoul neighborhoods typically get filled within one to two weeks, especially for well-priced studios and compact one-bedroom units near subway stations.
If you want to optimize your cashflow, you can read our complete guide on how to buy and rent out in Seoul.
Which upcoming projects could boost rents and rental yields in Seoul as of 2026?
As of early 2026, the top three upcoming infrastructure or development projects expected to boost rents in Seoul are the Yongsan International Business District redevelopment (construction starting 2026), the Jamsil Sports and MICE Complex development (also starting 2026), and the GTX-A transit expansion improving connectivity around Seoul Station.
The neighborhoods most likely to benefit from these projects include Yongsan-gu (around Yongsan and Seoul Station), Songpa-gu (Jamsil area), and Gangseo-gu (Magok cluster), where new jobs and improved transit access will draw more renters.
Investors might realistically expect rent increases of 5% to 15% in the immediate vicinity of these projects once they are completed, though the impact will vary based on unit type and exact proximity to the new amenities or transit nodes.
You'll find our latest property market analysis about Seoul here.
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What property type should I buy for renting in Seoul as of 2026?
Between studios and larger units in Seoul, which performs best in 2026?
As of early 2026, studios and small one-bedroom units outperform larger units in Seoul in terms of rental yield and occupancy, thanks to strong demand from singles and couples seeking affordable, transit-adjacent housing.
The typical gross rental yield for studios in Seoul ranges from 4% to 6% (roughly 800,000 to 1,200,000 KRW, or 550 to 830 USD, or 510 to 770 EUR per month for a small unit), while larger two-bedroom and family units typically yield 3% to 4%.
The main factor that explains why studios outperform in Seoul is that rents do not drop proportionally when units get smaller, so landlords capture more rent per square meter and per won invested.
However, larger units might be the better investment choice in Seoul if you are targeting families seeking school-zone apartments, since these tenants tend to sign longer leases and cause less turnover, which reduces leasing costs over time.
What property types are in most demand in Seoul as of 2026?
As of early 2026, the most in-demand property type in Seoul is compact apartments near subway stations, which attract the largest pool of renters seeking convenience and affordability.
The top three property types ranked by current tenant demand in Seoul are compact apartments (especially near transit), officetels used residentially by singles and couples, and villas or multi-family buildings in value districts that offer more space for the money.
The primary demographic trend driving this demand pattern in Seoul is the city's large population of young professionals and single-person households who prioritize commute time over extra living space.
One property type that is currently underperforming in demand and likely to remain so in Seoul is large detached houses, which are rare, expensive, and appeal only to a narrow slice of the market.
What unit size has the best yield per m² in Seoul as of 2026?
As of early 2026, the unit size range that delivers the best gross rental yield per square meter in Seoul is approximately 15 to 35 square meters, which covers micro-studios to efficient one-bedroom layouts.
The typical gross rental yield per square meter for this optimal unit size in Seoul is around 35,000 to 50,000 KRW per square meter per month (roughly 24 to 35 USD, or 22 to 32 EUR), which translates to the highest percentage returns on invested capital.
The main reason smaller or larger units tend to have lower yield per square meter in Seoul is that very small units face regulatory or livability limits on rent, while larger units see rents flatten out because most Seoul renters are budget-constrained and will not pay proportionally more for extra space.
By the way, we also have a blog article detailing whether owning an Airbnb rental is profitable in Seoul.
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 costs cut my net yield in Seoul as of 2026?
What are typical property taxes and recurring local fees in Seoul as of 2026?
As of early 2026, the estimated annual property tax for a typical rental apartment in Seoul is roughly 0.10% to 0.25% of market value, which for a 500 million KRW property (about 345,000 USD or 320,000 EUR) means around 500,000 to 1,250,000 KRW per year (350 to 860 USD, or 320 to 800 EUR).
Other recurring local fees landlords must budget for annually in Seoul include building maintenance fees (if owning in a complex), local area charges, and occasional special assessments, which together can add another 500,000 to 1,500,000 KRW per year (350 to 1,030 USD, or 320 to 960 EUR) depending on the building.
These taxes and fees typically represent about 3% to 6% of gross rental income in Seoul, which is meaningful when your starting yield is already in the 3% to 4% range.
By the way, we cover all the hidden fees and taxes in our property pack covering the real estate market in Seoul.
What insurance, maintenance, and annual repair costs should landlords budget in Seoul right now?
The estimated annual landlord insurance cost for a typical rental property in Seoul is approximately 150,000 to 400,000 KRW per year (100 to 275 USD, or 95 to 255 EUR), depending on coverage level and property value.
The recommended annual maintenance and repair budget in Seoul is about 0.4% to 1.0% of property value, which for a 500 million KRW property means 2 to 5 million KRW per year (1,380 to 3,450 USD, or 1,280 to 3,200 EUR).
The type of repair expense that most commonly catches Seoul landlords off guard is ondol (underfloor heating) system repairs or water heater replacements, which can easily cost 1 to 3 million KRW (690 to 2,070 USD, or 640 to 1,920 EUR) when they fail unexpectedly.
The total combined annual cost landlords should realistically budget for insurance, maintenance, and repairs in Seoul is approximately 2.5 to 5.5 million KRW per year (1,720 to 3,800 USD, or 1,600 to 3,520 EUR) for a mid-range investment property.
Which utilities do landlords typically pay, and what do they cost in Seoul right now?
In Seoul long-term rentals, tenants typically pay day-to-day utilities including electricity, gas, and water, while landlords are usually only responsible for building common-area fees if not already bundled into monthly maintenance.
If a Seoul landlord ends up covering utilities in a furnished or special lease arrangement, the estimated monthly cost is 150,000 to 250,000 KRW for a small unit (100 to 170 USD, or 95 to 160 EUR) and 250,000 to 450,000 KRW for a larger unit (170 to 310 USD, or 160 to 290 EUR), with winter gas bills potentially spiking higher.
What does full-service property management cost, including leasing, in Seoul as of 2026?
As of early 2026, the estimated monthly property management fee for full-service management in Seoul is approximately 5% to 8% of monthly rent, which for a 1 million KRW monthly rent (690 USD or 640 EUR) means 50,000 to 80,000 KRW per month (35 to 55 USD, or 32 to 51 EUR).
The typical leasing or tenant-placement fee in Seoul, charged on top of ongoing management, is approximately 0.5 to 1.0 month of rent equivalent, and Seoul's brokerage fees are legally capped based on transaction value.
What's a realistic vacancy buffer in Seoul as of 2026?
As of early 2026, landlords in Seoul should set aside approximately 3% to 5% of annual rental income as a vacancy buffer to account for turnover and lease-up periods.
The typical number of vacant weeks per year landlords experience in Seoul is about one to three weeks, which translates to roughly 10 to 20 days of lost rent annually for well-located, competitively priced units.
Buying real estate in Seoul can be risky
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What sources have we used to write this blog article?
Whether it's in our blog articles or the market analyses included in our property pack about Seoul, we always rely on the strongest methodology we can, and we don't throw out numbers at random.
We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.
| Source | Why It's Authoritative | How We Used It |
|---|---|---|
| Korea Real Estate Board (REB) | REB is Korea's official real estate statistics body and explains exactly how it measures sale and rent prices. | We used REB's definitions and scope to frame "all common residential types" consistently. We also used it to justify how "rent" should include both jeonse and monthly rent structures. |
| MOLIT Real Transaction Price Disclosure System | This is the government's official database for reported real estate transaction prices covering sales and rentals. | We used MOLIT as the "ground truth" reference for what prices and rents are based on actual reported transactions. We used it as a cross-check against index-based sources to keep our yield estimates realistic. |
| Korea Public Data Portal | It's the official portal where Korean government agencies publish datasets and APIs under the Open Data Act. | We used it to validate that rent and transaction datasets exist in auditable, government-published form. We used it to support our methodology of triangulating indices with transaction-level data. |
| KB Real Estate (KB Kookmin Bank) | KB's housing indices are widely cited in Korea and are a long-running benchmark for sale and rent trends. | We used KB's rent trend evidence showing record-high monthly-rent index to support early 2026 rent momentum. We used it as a second lens alongside REB and MOLIT to triangulate yield direction. |
| Chosunbiz (REB-based reporting) | It's a mainstream outlet explicitly citing REB's measured average monthly rent levels. | We used the reported Seoul average monthly rent level as a reality check so our yield estimates stay plausible. We used it to support the rent side of the rent-to-price ratio story in early 2026. |
| Chosun (jeonse to monthly-rent shift) | It cites MOLIT transaction data and documents a structural market shift that directly affects yields. | We used it to explain why rental yield in Seoul increasingly behaves like a monthly-cashflow market. We used it to justify treating effective rent as the correct yield numerator. |
| OECD Housing Prices Indicators | The OECD provides internationally comparable housing indicators with transparent definitions. | We used it to sanity-check that Korea is a high price-to-rent market in global context, which implies structurally lower yields. We used it as a macro anchor so our Seoul yield ranges stay plausible. |
| BIS Property Price Statistics | BIS is the global standard-setter for property price statistics used by central banks and the G20. | We used it to support the idea that housing market metrics should be cross-checked across high-quality statistical systems. We used it as a credibility anchor for our triangulation approach. |
| Seoul Metropolitan Government (Jamsil project) | It's the City of Seoul describing an approved mega-project with dates and scope. | We used it to identify place-specific rent catalysts that can lift rents in nearby micro-areas like Jamsil and Songpa. We used it to support the projects section with official timelines. |
| Smart City Korea (Yongsan IBD) | It's a public-sector source summarizing a major Seoul development project and schedule. | We used it to back up Yongsan's pipeline as a concrete Seoul-specific rent catalyst starting in 2026. We used it to name neighborhoods likely to benefit around the Yongsan and Seoul Station axis. |
| KEPCO Residential Electricity Tariffs | KEPCO is Korea's national power utility and publishes the official tariff schedule. | We used it to anchor electricity costs in an auditable way rather than blog estimates. We used it to translate utilities into a realistic landlord budgeting range for net yields. |
| Seoul Metropolitan Government (water supply ordinance) | It's the official legal text that governs how Seoul water rates and charges are set. | We used it to justify that water and sewer charges are rule-based and predictable for net yield planning. We used it to support budgeting guidance even when exact bills vary by usage. |
| National Tax Service (NTS) | NTS is the primary authority for income tax reporting, including rental income in South Korea. | We used it to ground the discussion that rental income is taxable and compliance matters for net yield. We used it as the authority anchor for tax obligations even when cashflow feels small. |
| Ministry of Economy and Finance (MOEF) | MOEF is the central government body shaping Korea's tax rules and policy direction. | We used it to reinforce that tax settings can change and should be checked against official releases when underwriting. We used it to justify building a policy buffer into net yield expectations. |
| Seoul Government Brokerage Fee Guide | It's the City of Seoul explaining legally capped brokerage fees in plain terms. | We used it to estimate leasing friction costs that affect year-one net yield. We used it to keep transaction and leasing assumptions aligned with local rules. |
| Reuters (Seoul district policy) | Reuters is a trusted international news source covering Korean real estate policy developments. | We used it to document policy attention on affluent districts and price concentration patterns. We used it to explain why premium neighborhoods have compressed yields despite high absolute rents. |
| Korea JoongAng Daily (GTX-A) | It's a major Korean news outlet covering infrastructure developments with specific timelines. | We used it to include GTX-A connectivity effects as a rent catalyst for neighborhoods gaining better transit access. We used it to identify which areas may see rent growth from improved commute times. |
| Chosunbiz (Magok district) | It provides coverage of emerging Seoul business clusters and their real estate impact. | We used it to identify Magok as a maturing business and R&D hub that could boost nearby rents. We used it to support the projects section with concrete neighborhood-level examples. |
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