What are the price trends and forecasts in South Korea right now? (2026)

South Korea's housing market in 2026 is a tale of two worlds: Seoul keeps climbing while much of the country stays flat.

We constantly update this blog post to bring you the latest data on current housing prices in South Korea and what experts expect next.

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 South Korea.

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.

What are the current property price trends in South Korea as of 2026?

What is the average house price in South Korea as of 2026?

As of early 2026, the average home price in South Korea sits around 470 million KRW (roughly $330,000 USD or €315,000 EUR), though this national figure masks a huge gap between Seoul and everywhere else.

When it comes to price per square meter, South Korean properties average about 6.4 million KRW per square meter nationwide (around $4,500 USD or €4,300 EUR), while Seoul commands roughly 18 million KRW per square meter ($12,600 USD or €12,000 EUR).

For context, about 80% of property purchases in South Korea fall within a range of 200 million to 900 million KRW ($140,000 to $630,000 USD or €135,000 to €600,000 EUR), with Seoul purchases clustering at the higher end and provincial cities at the lower end.

How much have property prices increased in South Korea over the past 12 months?

Over the past 12 months leading into January 2026, property prices in South Korea increased by an estimated 1% nationwide, though Seoul saw a much stronger rise of around 8%.

This range varies significantly by property type and location: Seoul apartments gained 8% to 10%, while provincial cities saw flat to modest 2% growth, and some rural areas even recorded slight declines.

The single biggest factor behind this price movement was Seoul's persistent supply shortage, as redevelopment delays and limited buildable land kept new housing well below demand in the capital region.

Which neighborhoods have the fastest rising property prices in South Korea as of 2026?

As of early 2026, the three neighborhoods with the fastest rising property prices in South Korea are Songpa-gu, Yongsan-gu, and Seocho-gu, all located in Seoul's premium southern corridor.

These top three Seoul districts each recorded annual price growth between 10% and 15%, with Songpa-gu leading the pack due to its combination of excellent schools, transport links, and proximity to Gangnam's business district.

The main demand driver behind these rapid price increases is Seoul's extreme supply constraint in desirable neighborhoods, combined with strong preference from families seeking top school districts and convenient subway access.

By the way, you will find much more detailed price ranges across neighborhoods in our property pack covering the real estate market in South Korea.

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 property types are increasing faster in value in South Korea as of 2026?

As of early 2026, the ranking of property types by appreciation rate in South Korea goes: apartments (highest), officetels, villas and multi-family units, and detached houses (most variable).

The top-performing property type, apartments in Seoul and the capital region, appreciated by roughly 8% to 10% over the past year, significantly outpacing other categories.

Apartments are outperforming because they offer the highest liquidity, strongest buyer preference, and easiest financing terms, making them the default choice for both homeowners and investors in South Korea's urban housing market.

Finally, if you're interested in a specific property type, you will find our latest analyses here:

• How much do properties cost in South Korea?
• How much should you pay for a house in South Korea?
• How much should you pay for lands in South Korea?

What is driving property prices up or down in South Korea as of 2026?

As of early 2026, the top three factors driving property prices in South Korea are supply shortages in Seoul, interest rate expectations from the Bank of Korea, and rising jeonse rental deposits pushing renters toward buying.

The single factor with the strongest upward pressure on South Korean property prices is the severe supply constraint in Seoul, where redevelopment delays and limited land have created a persistent gap between housing demand and available units.

If you want to understand these factors at a deeper level, you can read our latest property market analysis about South Korea here.

What is the property price forecast for South Korea in 2026?

How much are property prices expected to increase in South Korea in 2026?

As of early 2026, property prices in South Korea are expected to increase by roughly 1% to 2% nationwide, with the Seoul metro area projected to see stronger growth of around 2.5% to 4%.

Forecasts from different analysts range from flat growth (0%) in provincial areas to as high as 4% in prime Seoul districts, reflecting the country's increasingly two-speed housing market.

The main assumption underlying most price increase forecasts for South Korea is that housing supply in Seoul will remain constrained due to slow redevelopment timelines and limited new construction permits.

We go deeper and try to understand how solid are these forecasts in our pack covering the property market in South Korea.

Which neighborhoods will see the highest price growth in South Korea in 2026?

As of early 2026, the neighborhoods expected to see the highest price growth in South Korea include Songpa-gu, Yongsan-gu, Seocho-gu, and Seongdong-gu in Seoul, plus Bundang/Pangyo in Gyeonggi province.

These top neighborhoods are projected to see price growth between 4% and 8% in 2026, roughly double the national average, due to their combination of job proximity and constrained supply.

The primary catalyst driving expected growth in these areas is the combination of excellent transportation access (including future GTX stations), top-rated schools, and very limited new housing supply.

One emerging neighborhood that could surprise with higher-than-expected growth is Hanam in Gyeonggi province, which benefits from new GTX connections and spillover demand from buyers priced out of central Seoul.

By the way, we've written a blog article detailing what are the current best areas to invest in property in South Korea.

What property types will appreciate the most in South Korea in 2026?

As of early 2026, apartments in Seoul and the capital region are expected to appreciate the most in South Korea, followed by officetels in job-dense urban centers.

The projected appreciation for top-performing Seoul apartments ranges from 4% to 8% in 2026, with prime districts like Gangnam and Songpa at the higher end of that range.

The main demand trend driving apartment appreciation is the persistent buyer preference for this property type due to its superior liquidity, easier mortgage access, and strong resale market compared to other options.

Detached houses outside the Seoul metro area are expected to underperform in 2026 because they face weaker demand from a shrinking population and younger buyers who prefer convenient urban apartments.

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 will interest rates affect property prices in South Korea in 2026?

As of early 2026, the Bank of Korea's base rate of 2.50% is keeping mortgage costs moderate, and any rate cuts would likely accelerate price growth in leverage-sensitive Seoul neighborhoods.

The current benchmark rate stands at 2.50%, and most analysts expect the Bank of Korea to hold steady or make modest cuts of 0.25% to 0.50% if economic growth weakens, which would push mortgage rates slightly lower.

A 1% drop in interest rates in South Korea typically boosts buyer purchasing power by roughly 10% to 12%, which historically translates to 3% to 5% additional price growth in Seoul's apartment market over the following year.

You can also read our latest update about mortgage and interest rates in South Korea.

What are the biggest risks for property prices in South Korea in 2026?

As of early 2026, the three biggest risks for property prices in South Korea are stricter mortgage lending rules in Seoul, household debt limits binding harder than expected, and a potential global economic slowdown hurting exports.

The single risk with the highest probability of materializing is tighter enforcement of mortgage restrictions in overheating Seoul districts, as the government has already signaled it will intervene quickly if speculation picks up again.

We actually cover all these risks and their likelihoods in our pack about the real estate market in South Korea.

Is it a good time to buy a rental property in South Korea in 2026?

As of early 2026, buying a rental property in South Korea can make sense in select locations, but it requires careful area selection because yields are low in Seoul and demographics are weakening outside the capital region.

The strongest argument in favor of buying now is that jeonse rental deposits are expected to rise 3% to 5% in 2026, which supports rental demand and could push more tenants toward your property.

The strongest argument for waiting is that government mortgage restrictions may tighten further in hot districts, potentially limiting price appreciation and making it harder to finance purchases in the most desirable areas.

If you want to know our latest analysis (results may differ from what you just read), you can read our assessment on whether now is a good time to buy a property in South Korea.

You'll also find a dedicated document about this specific question in our pack about real estate in South Korea.

Where will property prices be in 5 years in South Korea?

What is the 5-year property price forecast for South Korea as of 2026?

As of early 2026, property prices in South Korea are expected to grow by roughly 10% to 20% cumulatively over the next five years nationwide, with Seoul and prime capital region areas potentially reaching 15% to 30% total growth.

The range of 5-year forecasts spans from a conservative 10% (roughly 2% per year) in a scenario where demographics and debt limits bite hard, to an optimistic 30% (roughly 5% per year) if supply stays constrained and rates fall.

This translates to a projected average annual appreciation rate of roughly 2% to 4% per year for South Korea as a whole, with Seoul's prime districts at the higher end of that range.

The key assumption most forecasters rely on is that Seoul will continue attracting jobs, talent, and investment, which supports housing demand even as South Korea's overall population begins to decline.

Which areas in South Korea will have the best price growth over the next 5 years?

The top three areas in South Korea expected to have the best price growth over five years are Seoul's Gangnam-Seocho-Songpa corridor, the Bundang/Pangyo tech hub in Seongnam, and GTX-connected nodes in Gyeonggi province.

These top-performing areas are projected to see 5-year cumulative growth between 20% and 35%, roughly doubling the national average, due to their job density and supply constraints.

This aligns closely with our shorter-term forecast because the same drivers (limited supply, job concentration, infrastructure) operate in both timeframes, though the 5-year outlook adds more weight to GTX completion benefits.

One currently undervalued area with strong 5-year potential is Gwacheon in Gyeonggi, which combines government office employment, excellent schools, and upcoming transportation improvements at prices below neighboring Seoul districts.

What property type will give the best return in South Korea over 5 years as of 2026?

As of early 2026, apartments in well-connected Seoul and prime capital region locations are expected to give the best total return over five years in South Korea.

The projected 5-year total return for top-performing apartments (combining appreciation plus potential rental income) ranges from 25% to 45%, assuming moderate price growth plus rental yields of 2% to 3% annually.

The main structural trend favoring apartments is South Korea's urbanization concentration in Seoul, where young professionals and families strongly prefer this property type for its convenience, liquidity, and financing accessibility.

For investors seeking a balance of solid returns with lower risk, mid-sized apartments in Seongdong-gu or Mapo-gu offer good liquidity and steady demand without the extreme prices of Gangnam, making them a safer 5-year bet.

How will new infrastructure projects affect property prices in South Korea over 5 years?

The top three infrastructure projects expected to impact South Korean property prices over five years are the GTX-A, GTX-B, and GTX-C express rail lines, which will dramatically cut commute times from Gyeonggi suburbs into Seoul.

Properties near completed GTX stations in South Korea typically see price premiums of 10% to 20% compared to similar properties further from stations, based on patterns observed near existing Seoul subway expansions.

The neighborhoods most likely to benefit from GTX development include Dongtan, Hanam, Incheon Songdo, and parts of northern Gyeonggi near GTX-B stations, where commute time reductions will be most dramatic.

How will population growth and other factors impact property values in South Korea in 5 years?

South Korea's population is projected to decline by roughly 0.2% to 0.3% annually over the next five years, which creates a headwind for property values outside Seoul but reinforces demand concentration in the capital region.

The demographic shift with the strongest influence on South Korean property demand is shrinking household sizes, as more single-person households in Seoul drive demand for smaller apartments and officetels even as total population falls.

Domestic migration patterns are expected to continue favoring Seoul and Gyeonggi, as young professionals move from provincial cities toward capital region jobs, supporting property values there while weakening demand elsewhere.

The property types and areas most likely to benefit from these demographic trends are smaller apartments and officetels in Seoul's job-dense districts like Gangnam, Yeouido, and the emerging Yongsan business corridor.

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 is the 10 year property price outlook in South Korea?

What is the 10-year property price prediction for South Korea as of 2026?

As of early 2026, property prices in South Korea are expected to grow by roughly 15% to 35% cumulatively over the next 10 years nationwide, with prime Seoul and capital region assets potentially reaching 25% to 60% total growth.

The range of 10-year forecasts spans from a conservative 15% (roughly 1.5% per year) if demographic decline accelerates and policy stays restrictive, to an optimistic 60% (roughly 5% per year) in prime Seoul under favorable conditions.

This translates to a projected average annual appreciation rate of roughly 1.5% to 3% per year for South Korea overall, with Seoul's best districts potentially achieving 2.5% to 5% annually.

The biggest uncertainty factor in making 10-year property predictions for South Korea is demographics, specifically whether Seoul can continue attracting enough domestic migrants and economic activity to offset the country's overall population decline.

What long-term economic factors will shape property prices in South Korea?

The top three long-term economic factors that will shape property prices in South Korea over the next decade are demographic decline (aging population and fewer households), household debt management policies, and Seoul's continued economic dominance over provincial cities.

The single long-term economic factor with the most positive impact on South Korean property values is Seoul's concentration of high-paying technology and finance jobs, which will keep demand strong in the capital region even as the national population shrinks.

The single long-term factor posing the greatest structural risk is South Korea's household debt level (among the highest in the OECD), which could force continued policy restrictions on mortgage lending and limit price growth potential.

You'll also find a much more detailed analysis in our pack about real estate in South Korea.

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 South Korea, 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)	Government-designated body monitoring Korea's housing market with official surveys.	We used it as the official weekly and monthly price direction benchmark. We cross-checked Seoul district trends against private indexes.
KB Real Estate Data Hub	Korea's most-referenced private housing price index with transparent methodology.	We used it to cross-check REB data and pull practical market signals. We referenced neighborhood-level changes where KB publishes district data.
Bank of Korea (BOK)	Central bank with primary authority on rates and macro data.	We used it to anchor borrowing conditions affecting affordability. We framed interest rate sensitivity for our 2026 analysis.
BOK Monetary Policy 2026	Official statement of how the central bank plans to manage inflation and growth.	We used it to shape 2026 scenarios. We explained why rate cuts may be gradual if housing overheats.
BOK ECOS Statistics	Official portal for Bank of Korea economic time series.	We used it for cross-checking macro indicators like inflation and rates. We kept our narrative consistent with official data.
IMF 2025 Korea Article IV	Top-tier international institution providing standardized country surveillance.	We used it for risk framing around household debt. We aligned our outlook with global baseline scenarios.
OECD House Price Tracker	Harmonized cross-country housing metrics widely cited by policymakers.	We used it to sanity-check Korea's trend versus other advanced economies. We avoided over-weighting any single local index.
BIS Residential Property Statistics	Global reference for comparable house price series across countries.	We used it for long-run cycle context and real versus nominal analysis. We validated Korea's cycle differences from the US and EU.
KOSIS (Statistics Korea)	Korea's official statistics portal run by the government.	We used it for demographic and structural drivers like population trends. We grounded long-term demand assumptions.
Statistics Korea Population Projections	Official methodology document for Korea's 2022-2072 population forecast.	We used it to quantify the long-run demographic headwind. We explained the Seoul versus rest-of-country divergence.
UN World Population Prospects	Global gold standard for comparable population projections.	We used it to cross-check Korea's demographic trajectory. We built confidence in our 10-year narrative.
Ministry of Land, Infrastructure and Transport	Main housing and transport ministry that sets policy and supply pipelines.	We used it for policy direction on supply and redevelopment rules. We justified infrastructure-driven neighborhood effects.
Reuters (Trading Restrictions)	Top-tier wire service citing government measures directly.	We used it to document which Seoul districts faced anti-speculation policy. We identified overheating areas.
Reuters (Mortgage Rules)	Captures policy changes with dates and specifics from official sources.	We used it to explain the 2026 policy constraint on price growth. We framed downside risk scenarios.
Bloomberg	Major financial outlet referencing official and local datasets.	We used it as a current momentum check entering January 2026. We anchored core claims on official sources where possible.
Seoul Economic Daily (Forecast)	Reports named institute forecasts with concrete numbers.	We used it as the 2026 forecast baseline for Seoul metro prices. We cross-checked against macro conditions.
Seoul Economic Daily (Jeonse)	Reports institutional forecasts on Korea's unique rental market.	We used it to evaluate rental market pressure affecting sales demand. We informed our rental property timing assessment.
Asia Economy (GTX-B)	Reports MOLIT updates on key transport megaprojects.	We used it to map which commuter corridors could see demand uplift. We built our 5-year infrastructure winners list.
Korea JoongAng Daily	Major English-language Korean news source covering real estate trends.	We used it to confirm Seoul's 2025 price growth was the fastest in nearly two decades. We validated our annual change estimates.
Chosun Biz	Respected Korean business news outlet with real estate coverage.	We used it to confirm Seoul apartment price milestones. We cross-checked average price levels against other sources.