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's property market entered 2026 with strong momentum after apartment prices surged at their fastest pace in nearly two decades during 2025.
The Bank of Korea held its base rate at 2.50% in January 2026, which directly affects mortgage costs and how much buyers can realistically afford.
We constantly update this blog post to reflect the latest market conditions, so you always get current information.
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.
What's the Current Real Estate Market Situation by Area in Seoul?
Which areas in Seoul have the highest property prices per square meter in 2026?
As of early 2026, the three most expensive areas in Seoul are Banpo-dong and Jamwon-dong in Seocho-gu, Apgujeong-dong and Cheongdam-dong in Gangnam-gu, and Daechi-dong in Gangnam-gu, where prime apartments routinely trade at record-breaking prices.
In these top-tier Seoul neighborhoods, typical prices for quality apartments range from 30 million to 55 million Korean won per square meter, though trophy units in landmark complexes can exceed even that ceiling.
Each of these premium Seoul neighborhoods commands high prices for specific reasons that go beyond just location:
- Banpo-dong and Jamwon-dong: New luxury rebuilds near Han River with Express Bus Terminal access.
- Apgujeong-dong and Cheongdam-dong: Korea's luxury brand epicenter with ongoing redevelopment projects.
- Daechi-dong: Unmatched concentration of elite hagwon academies driving family demand.
- Jamsil-dong: Large landmark complexes near Lotte World and COEX convention center.
- Hannam-dong: Embassy district with extremely limited villa supply and expat appeal.
Which areas in Seoul have the most affordable property prices in 2026?
As of early 2026, the most affordable areas to buy property in Seoul are Nowon-gu (especially Junggye-dong and Sanggye-dong), Dobong-gu (Banghak-dong and Chang-dong), Guro-gu (Guro-dong and Oryu-dong), and Geumcheon-gu (Doksan-dong and Siheung-dong).
In these budget-friendly Seoul neighborhoods, you can typically find apartments priced between 7 million and 12 million Korean won per square meter, which is roughly one-quarter to one-third of what you would pay in Gangnam.
The main trade-offs in these lower-priced Seoul areas include longer commute times to major business districts, older building stock that may require renovation, and in some pockets, fewer premium amenities like international schools or high-end retail, though Nowon-gu actually offers decent family infrastructure despite its lower prices.
You can also read our latest analysis regarding housing prices in Seoul.
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of South Korea. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.
Which Areas in Seoul Offer the Best Rental Yields?
Which neighborhoods in Seoul have the highest gross rental yields in 2026?
As of early 2026, the Seoul neighborhoods with the highest gross rental yields are Sillim-dong and Bongcheon-dong in Gwanak-gu (around 4% to 5%), Chang-dong and Banghak-dong in Dobong-gu (around 4% to 5%), and Guro-dong near the Guro Digital Complex (around 3.5% to 4.5%).
Across Seoul as a whole, typical gross rental yields range from about 1.5% in prime Gangnam locations up to 5.5% in select outer districts with smaller units, which makes Seoul a low-yield market compared to many other Asian capitals.
These higher-yielding Seoul neighborhoods outperform for different reasons:
- Sillim-dong and Bongcheon-dong: Constant student and young worker demand near Seoul National University.
- Chang-dong and Banghak-dong: Lower purchase prices boost yield math when near subway stations.
- Guro-dong: Office workers at Guro Digital Complex create steady tenant demand.
- Doksan-dong and Siheung-dong: Among Seoul's lowest entry prices, improving yield percentages.
Finally, please note that we cover the rental yields in Seoul here.
Make a profitable investment in Seoul
Better information leads to better decisions. Save time and money. Download our guide.
Which Areas in Seoul Are Best for Short-Term Vacation Rentals?
Which neighborhoods in Seoul perform best on Airbnb in 2026?
As of early 2026, the top-performing Airbnb neighborhoods in Seoul are Myeong-dong and Euljiro in Jung-gu (high occupancy, nightly rates around 150,000 to 250,000 won), Ikseon-dong and Anguk-dong in Jongno-gu (strong cultural tourism appeal), and Itaewon-dong in Yongsan-gu (nightlife-driven demand with premium pricing potential).
Top-performing short-term rental properties in these Seoul neighborhoods typically generate between 3 million and 6 million Korean won per month in gross revenue, though this varies significantly based on unit quality, seasonality, and whether you maintain superhost status.
Each of these Seoul neighborhoods attracts short-term rental guests for specific reasons:
- Myeong-dong and Euljiro: Walking distance to palaces, shopping, and multiple subway lines.
- Ikseon-dong and Anguk-dong: Traditional hanok charm combined with trendy cafes and restaurants.
- Itaewon-dong: International dining scene and nightlife draws younger travelers.
- Seogyo-dong and Yeonnam-dong: Hongdae youth culture and Instagram-worthy cafe streets.
- Jamsil-dong: Lotte World, sports events, and COEX access for families and business travelers.
By the way, we also have a blog article detailing whether owning an Airbnb rental is profitable in Seoul.
Which tourist areas in Seoul are becoming oversaturated with short-term rentals?
The three Seoul tourist areas showing the clearest signs of short-term rental oversaturation are the Hongdae core around Seogyo-dong in Mapo-gu, the fringes of Myeong-dong in Jung-gu, and parts of Itaewon-dong in Yongsan-gu where competition has intensified significantly.
In the most saturated Seoul neighborhoods like Hongdae's Seogyo-ro vicinity, listing density has grown rapidly, with hundreds of active short-term rentals competing within a small radius, forcing new hosts into aggressive discounting to maintain occupancy.
The main warning sign that these Seoul areas have reached oversaturation is not just the raw number of listings but rather the combination of declining average daily rates, increasing vacancy gaps between bookings, and a growing number of hosts exiting the market after failing to hit projected revenue targets.
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 Areas in Seoul Are Best for Long-Term Rentals?
Which neighborhoods in Seoul have the strongest demand for long-term tenants?
The Seoul neighborhoods with the strongest long-term tenant demand are Daechi-dong and Banpo-dong for families, Yeonnam-dong and Seongsu-dong for young professionals, and Yeouido-dong and Samseong-dong for office workers seeking convenient commutes.
In these high-demand Seoul rental neighborhoods, well-maintained apartments typically find tenants within two to four weeks, with vacancy rates staying consistently low compared to the city average.
Different tenant profiles drive demand in each of these Seoul neighborhoods:
- Daechi-dong: Families prioritizing access to Korea's most famous hagwon academy district.
- Banpo-dong and Jamwon-dong: Affluent families wanting Han River parks and top schools.
- Yeonnam-dong and Seongsu-dong: Young creative professionals attracted to cafe culture and startups.
- Yeouido-dong: Finance sector employees wanting to walk to work.
- Samseong-dong and Yeoksam-dong: Corporate workers near COEX and Gangnam office towers.
The key amenity that makes these Seoul neighborhoods attractive varies: for family-focused areas like Daechi-dong it is proximity to elite education, while for young professional hubs like Seongsu-dong it is the vibrant cafe and retail scene combined with good subway access.
Finally, please note that we provide a very granular rental analysis in our property pack about Seoul.
What are the average long-term monthly rents by neighborhood in Seoul in 2026?
As of early 2026, average monthly rents in Seoul vary dramatically by neighborhood, ranging from around 600,000 won for a studio in Sillim-dong up to 7 million won or more for a family apartment in Banpo-dong.
In Seoul's most affordable rental neighborhoods like Sillim-dong, Bongcheon-dong in Gwanak-gu, and parts of Nowon-gu, entry-level studios and one-bedroom apartments typically rent for 600,000 to 1.2 million Korean won per month (excluding deposit).
In mid-range Seoul neighborhoods like Seongsu-dong, Yeonnam-dong, and parts of Mapo-gu, one-bedroom apartments typically rent for 1 million to 1.9 million won per month, while two-bedroom family units range from 1.8 million to 3 million won.
In Seoul's most expensive rental neighborhoods like Banpo-dong, Daechi-dong, and Apgujeong-dong, two-bedroom family apartments command 3 million to 7 million Korean won per month, reflecting the premium that families pay for elite school zone access.
You may want to check our latest analysis about the rents in Seoul here.
Get fresh and reliable information about the market in Seoul
Don't base significant investment decisions on outdated data. Get updated and accurate information with our guide.
Which Are the Up-and-Coming Areas to Invest in Seoul?
Which neighborhoods in Seoul are gentrifying and attracting new investors in 2026?
As of early 2026, the Seoul neighborhoods experiencing the most active gentrification and investor interest are Seongsu-dong in Seongdong-gu (which has transformed from industrial to creative hub), the Euljiro 3-ga and 4-ga micro-pockets in Jung-gu, and the deeper streets of Yeonnam-dong in Mapo-gu beyond the main commercial strip.
These gentrifying Seoul neighborhoods have seen annual price appreciation rates of roughly 5% to 10% over recent years, outpacing many established areas, though investors should note that the strongest gains often came to early movers before the transformation became widely recognized.
Which areas in Seoul have major infrastructure projects planned that will boost prices?
The Seoul areas most likely to benefit from major infrastructure projects are neighborhoods along new or extended subway lines, areas designated for large-scale apartment reconstruction, and districts near transit-oriented development zones where commute times will meaningfully improve.
Specific projects to watch include the GTX express rail network connecting Seoul's outskirts to central business districts in under 20 minutes, ongoing reconstruction approvals in aging Gangnam apartment complexes, and the continued development around Yongsan International Business District.
Historically in Seoul, neighborhoods that gained new subway station access have seen price premiums of 10% to 20% materialize within a few years of line completion, though the exact timing and magnitude depend heavily on what other transit options existed before.
You'll find our latest property market analysis about Seoul here.
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.
Which Areas in Seoul Should I Avoid as a Property Investor?
Which neighborhoods in Seoul with lots of problems I should avoid and why?
Rather than naming entire neighborhoods, the riskiest investment patterns in Seoul involve buying older low-rise "villa" buildings with unclear maintenance histories, properties far from subway stations in areas with abundant competing supply, or units purchased primarily for Airbnb income without proper legal compliance.
The main problems affecting risky Seoul property types include:
- Old villa pockets with weak maintenance: Surprise repair costs and very difficult resale liquidity.
- Units far from subway lines: Tenants have many substitutes, capping your rent growth.
- STR-dependent properties without compliance: Korea's homestay rules actively enforced, risking your income.
- Complexes with stalled reconstruction: Price premium paid for upside that may never arrive.
For these problematic Seoul property types to become viable investments, you would need either significant renovation to address building quality issues, new transit infrastructure to improve accessibility, or regulatory changes to clarify short-term rental rules for foreign owners.
Buying a property in the wrong neighborhood is one of the mistakes we cover in our list of risks and pitfalls people face when buying property in Seoul.
Which areas in Seoul have stagnant or declining property prices as of 2026?
As of early 2026, price stagnation in Seoul is less about entire districts and more about specific building types, particularly older apartment complexes with weak reconstruction prospects and villa pockets with limited transit access that did not participate in 2025's broad market surge.
These underperforming Seoul properties have seen roughly flat to slightly negative real returns over the past two to three years, lagging the 10% to 15% gains that prime Seoul apartments achieved in 2025 alone.
The underlying causes of stagnation differ by property type:
- Small complexes with reconstruction hurdles: Too few units or legal constraints block redevelopment value.
- Areas with heavy similar supply: Tenants easily switch buildings, limiting both rent and price growth.
- Older villas in non-premium locations: Financing difficulty and buyer preference for apartments.
- Units with poor resident alignment on rebuilding: Stuck in limbo without clear upside timeline.
Buying real estate in Seoul can be risky
An increasing number of foreign investors are showing interest. However, 90% of them will make mistakes. Avoid the pitfalls with our comprehensive guide.
Which Areas in Seoul Have the Best Long-Term Appreciation Potential?
Which areas in Seoul have historically appreciated the most recently?
The Seoul areas that have appreciated most strongly over the past five to ten years are the Gangnam 3 districts (Gangnam-gu, Seocho-gu, and Songpa-gu), particularly neighborhoods with top school zones, successful reconstruction projects, or major transportation hubs like Jamsil-dong.
Here is how these top-appreciating Seoul neighborhoods performed:
- Daechi-dong: Roughly doubled over the past decade, driven by education premium.
- Banpo-dong and Jamwon-dong: New luxury rebuilds pushed prices up 80% to 100% in ten years.
- Jamsil-dong: Major complexes gained 70% to 90%, highlighted as a 2025 leader by KREB data.
- Apgujeong-dong: Redevelopment anticipation lifted older stock by 60% to 80%.
The main driver behind this above-average appreciation in Seoul's top-performing areas is the combination of extreme supply scarcity (rebuilding takes years and adds few net new units), inelastic demand from families who will pay almost anything for school zone access, and the wealth concentration that treats prime Seoul real estate as a store of value.
By the way, you will find much more detailed trends and forecasts in our pack covering there is to know about buying a property in Seoul.
Which neighborhoods in Seoul are expected to see price growth in coming years?
The Seoul neighborhoods expected to see the strongest price growth in coming years are areas with credible reconstruction timelines in Gangnam and Seocho, lifestyle hubs like Seongsu-dong that continue attracting young professionals, and locations set to benefit from GTX express rail connectivity.
Here are the projected growth drivers by neighborhood:
- Apgujeong-dong reconstruction zones: 5% to 8% annual growth if approvals proceed on schedule.
- Seongsu-dong: 4% to 7% annual growth as creative economy cluster matures.
- GTX station areas: 10% to 15% uplift potential once lines become operational.
- Yongsan redevelopment zone: 5% to 10% growth tied to international business district progress.
The single most important catalyst for future price growth in these Seoul neighborhoods is the successful execution of either physical redevelopment (turning old buildings into new premium stock) or infrastructure delivery (dramatically cutting commute times), since both unlock value that is currently discounted due to execution uncertainty.
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 Do Locals and Expats Really Think About Different Areas in Seoul?
Which areas in Seoul do local residents consider the most desirable to live?
The Seoul areas that local Korean residents consistently rank as most desirable are Daechi-dong for families prioritizing education, Banpo-dong and Jamwon-dong for those wanting Han River lifestyle with top schools, and Jamsil-dong for families who want large apartment complexes with good amenities and entertainment access.
Here is what makes each of these Seoul neighborhoods most desirable to locals:
- Daechi-dong: Korea's most famous hagwon district, essential for competitive exam preparation.
- Banpo-dong and Jamwon-dong: Waterfront parks, new luxury apartments, and top school assignments.
- Jamsil-dong: Family-friendly mega-complexes with Lotte World and sports facilities nearby.
- Ichon-dong: Quieter family environment with Han River access and established communities.
The typical residents in these locally-preferred Seoul neighborhoods are upper-middle-class and wealthy Korean families with school-age children, often with at least one parent working in a professional or executive role, who prioritize educational outcomes above almost all other considerations.
Local Korean preferences and foreign investor targets often diverge: locals pay extreme premiums for school zones that offer little value to foreigners without Korean-educated children, while foreigners sometimes overpay for "trendy" or "international" neighborhoods that locals view as overpriced relative to practical living quality.
Which neighborhoods in Seoul have the best reputation among expat communities?
The Seoul neighborhoods with the best reputation among expat communities are Hannam-dong and Itaewon-dong in Yongsan-gu for their international amenities and English-friendly environment, and Ichon-dong in Yongsan-gu for families seeking established expat community networks and international schools.
Here is why expats prefer these Seoul neighborhoods:
- Hannam-dong: Embassy proximity, international restaurants, English-speaking services, luxury villas.
- Itaewon-dong: Diverse dining and nightlife, English widely spoken, walkable community feel.
- Ichon-dong: Long-established expat family community with parks and quieter atmosphere.
- Samseong-dong and Yeoksam-dong: Business expats prefer COEX area convenience and modern apartments.
The typical expat profile in these popular Seoul neighborhoods includes diplomatic staff and international organization employees in Hannam-dong, younger professionals and English teachers in Itaewon-dong, families with children at international schools in Ichon-dong, and corporate transferees in the Gangnam business district areas.
Which areas in Seoul do locals say are overhyped by foreign buyers?
The Seoul areas that locals most commonly say are overhyped by foreign buyers are the trendiest strips of Hongdae around Seogyo-dong where competition has pushed prices beyond fundamentals, ultra-tourist cores like central Myeong-dong where Airbnb dreams meet regulatory reality, and some parts of Itaewon-dong where vibrancy comes with volatility.
Here is why locals consider these Seoul areas overvalued:
- Hongdae core (Seogyo-dong main strip): Fun to visit, but rental yields compressed by buyer competition.
- Central Myeong-dong: Tourist foot traffic does not equal legal short-term rental income.
- Parts of Itaewon-dong: Nightlife appeal masks higher vacancy and demand volatility risks.
Foreign buyers typically overvalue these Seoul areas because they extrapolate from tourist experience (busy streets must mean profitable rentals) without fully understanding Korea's strict short-term rental regulations, the gap between asking prices and achievable rents, or the preference of Korean long-term tenants for quieter, more family-oriented neighborhoods.
By the way, we've written a blog article detailing the experience of buying a property as a foreigner in Seoul.
Which areas in Seoul are considered boring or undesirable by residents?
The Seoul areas that residents most commonly describe as boring or undesirable are far-from-subway residential pockets without strong school districts, parks, or commercial amenities, as well as some homogeneous new-town style apartment blocks that lack neighborhood character or lifestyle appeal.
Here is what makes certain Seoul areas less appealing to residents:
- Distant Dobong-gu and Nowon-gu pockets: Long commutes without compensating lifestyle benefits.
- Generic new-town blocks: Functional but lacking cafes, restaurants, or community identity.
- Industrial-adjacent areas without regeneration: Noise, truck traffic, and few amenities.
- Villa clusters far from stations: Neither affordable enough nor convenient enough to attract tenants.
Don't lose money on your property in Seoul
100% of people who have lost money there have spent less than 1 hour researching the market. We have reviewed everything there is to know. Grab our guide now.
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 (KREB) | Korea's official state-run real estate market monitor used by locals and professionals. | We used KREB to anchor price trends across Seoul districts. We relied on their survey methodology to identify which areas were rising versus cooling. |
| Public Data Portal (data.go.kr) | Government's official open data gateway for real estate transaction records. | We used transaction-level data to verify neighborhood price and rent estimates. We grounded our numbers in actual reported contracts rather than listing prices. |
| KB Land (KB Kookmin Bank) | One of Korea's most widely referenced housing market data publishers. | We cross-checked typical neighborhood price bands against KB benchmarks. We used it to avoid over-weighting unusual trophy deals. |
| Bank of Korea | Korea's central bank and the official source for interest rate decisions. | We used BOK rate decisions to frame financing conditions in early 2026. We explained how mortgage costs affect buyer capacity. |
| KOSIS (Korean Statistical Information Service) | Korea's official national statistics portal for demographic and economic data. | We used KOSIS to verify demographic indicators and demand drivers. We sanity-checked private index claims against official statistics. |
| Seoul Metropolitan Government | Official city government source for policies, tourism data, and lease reporting. | We used Seoul's official communications for tourism rebound signals. We referenced their lease transparency explainers for rent market context. |
| AirDNA | Leading short-term rental analytics provider tracking Airbnb and Vrbo data. | We used AirDNA for market-wide STR performance benchmarks in Seoul. We localized their data using tourism nodes and neighborhood characteristics. |
| Korea JoongAng Daily | Major national English-language outlet citing official Korean data sources. | We used their KREB-citing reports to validate district-level trends. We referenced their coverage of regulatory changes affecting foreign buyers. |
| Reuters | Top-tier international wire service for macro-economic context. | We used Reuters to corroborate the early 2026 rate stance and housing momentum. We did not use it for neighborhood-level numbers. |
Get the full checklist for your due diligence in Seoul
Don't repeat the same mistakes others have made before you. Make sure everything is in order before signing your sales contract.
Related blog posts