Is right now a good time to buy a property in South Korea? (2026)

Authored by the expert who managed and guided the team behind the South Korea Property Pack

Everything you need to know before buying real estate is included in our South Korea Property Pack

Is it smart to buy now in South Korea, or should I wait as of 2026?

Do real estate prices look too high in South Korea as of 2026?

As of early 2026, South Korea's housing market is running on two very different tracks: nationally, prices look more flat than overheated, but Seoul apartments have surged well above what typical income growth would justify, with the capital posting around 8.7% gains in 2025 alone.

One clear signal that Seoul prices are stretched is the sharp contrast between asking prices and buyer hesitation outside the capital, where unsold inventory stood at roughly 68,000 units as of mid-2025, suggesting many sellers are struggling to find takers at current price levels.

Another telling indicator is that even with strong Seoul momentum, transaction volumes have been choppy in response to tightening mortgage rules, meaning fewer financed buyers can compete, which usually foreshadows price pressure if credit doesn't loosen.

You can also read our latest update regarding the housing prices in South Korea.

Does a property price drop look likely in South Korea as of 2026?

As of early 2026, the likelihood of a sharp, broad national crash in South Korea remains low, but there is a medium risk of localized pullbacks in the frothiest Seoul apartment submarkets that ran hot through 2025.

Looking at plausible scenarios, we estimate that Seoul prices could range from a modest 2% to 3% decline in overheated pockets to continued 3% to 5% gains in supply-constrained areas, while non-Seoul regions may see flat to slightly negative movement.

The single most important factor that could trigger a meaningful price drop in South Korea is a sustained tightening of credit conditions, specifically if regulators keep stressed DSR and LTV caps in place while the Bank of Korea delays rate cuts longer than markets expect.

This scenario is moderately likely in early 2026, as the central bank has signaled caution about easing too quickly given lingering FX volatility and the desire to avoid reigniting household debt growth.

Finally, please note that we cover the price trends for next year in our pack about the property market in South Korea.

Could property prices jump again in South Korea as of 2026?

As of early 2026, the likelihood of a renewed broad price surge in South Korea is low to medium nationally, though it remains moderate for Seoul apartments if supply constraints persist and credit loosens.

In an upside scenario, we estimate Seoul prices could rise another 4% to 6% over the next 12 months, while the capital region overall might see 2% to 3% gains if liquidity conditions improve and rate cuts materialize.

The single biggest demand-side trigger that could drive prices to jump again in South Korea is meaningful rate cuts by the Bank of Korea combined with any relaxation of stressed DSR rules, which would immediately expand the pool of financed buyers competing for limited Seoul inventory.

Please also note that we regularly publish and update real estate price forecasts for South Korea here.

Are we in a buyer or a seller market in South Korea as of 2026?

As of early 2026, South Korea's market is split: prime Seoul apartments lean seller-favorable with strong 2025 momentum, while many non-Seoul areas and villa or officetel segments are more balanced to buyer-leaning due to weaker demand.

Looking at months-of-inventory, Seoul apartments in high-demand districts like Gangnam, Songpa, and Yongsan often show very tight supply, sometimes under three months, which typically means buyers have little bargaining power, while provincial markets can sit at six months or more, giving buyers more leverage.

The share of listings with price reductions in South Korea varies sharply by location: in frothy Seoul submarkets, price cuts are rare because demand absorbs inventory quickly, but in slower regional cities like parts of Busan or Daegu, a higher proportion of sellers have had to adjust prices downward, signaling weaker seller leverage.

Are homes overpriced, or fairly priced in South Korea as of 2026?

Are homes overpriced versus rents or versus incomes in South Korea as of 2026?

As of early 2026, homes in South Korea appear moderately overpriced relative to both rents and incomes at the national level, with Seoul standing out as significantly stretched compared to what typical households can afford.

Looking at price-to-rent ratios, South Korea sits well above the balanced benchmark of roughly 15 to 20 years of annual rent to equal purchase price, with many Seoul apartments requiring 30 years or more of rent to justify buying, making renting look relatively attractive in purely financial terms.

For price-to-income, the average Seoul home now costs around 15 to 18 times the median household income, far above the 5 to 8 times range typically considered affordable, though non-Seoul markets often fall in a more reasonable 6 to 10 times range.

Finally please note that you will have all the indicators you need in our property pack covering the real estate market in South Korea.

Are home prices above the long-term average in South Korea as of 2026?

As of early 2026, national home prices in South Korea are not at an extreme peak relative to the long-term average, but Seoul apartment prices sit noticeably elevated above their recent trend after the sharp 2025 run-up.

Looking at recent momentum, Seoul apartment prices rose around 8.7% in 2025, well above the pre-pandemic pace of roughly 1% to 3% annual growth, signaling that the current level is running ahead of historical norms.

In inflation-adjusted terms, South Korea's real prices are above the 2022 trough but have not yet exceeded the prior cycle peak seen around 2021, meaning there may be room to run in some areas but less cushion than buyers might assume.

What local changes could move prices in South Korea as of 2026?

Are big infrastructure projects coming to South Korea as of 2026?

As of early 2026, the single biggest planned infrastructure project impacting South Korea's property market is the ongoing rollout of the GTX (Great Train Express) network, particularly the GTX-A line connection between Seoul Station and Suseo expected to open in September 2026, which could meaningfully boost values in well-positioned outer districts.

The timeline looks promising: the Paju to Seoul Station section opened in December 2024, the Seoul Station to Suseo connection is on track for September 2026, and GTX lines B and C are under construction with completion targets around 2028 to 2030, giving buyers a multi-year window to position ahead of full network benefits.

For the latest updates on the local projects, you can read our property market analysis about South Korea here.

Are zoning or building rules changing in South Korea as of 2026?

The single most important zoning discussion in South Korea right now centers on accelerating redevelopment and reconstruction approvals in the capital region, as the government pushes to unlock more housing supply in Seoul to cool price pressures.

As of early 2026, these supply-acceleration measures could put modest downward pressure on prices in areas where new units come online, though the net effect may be muted because construction takes years and pent-up demand in Seoul is enormous.

The areas most affected by rule changes are older apartment complexes in Seoul districts like Gangnam, Songpa, Yongsan, and Mapo, where reconstruction projects are most active and where regulatory streamlining could speed up the replacement of aging housing stock.

Are foreign-buyer or mortgage rules changing in South Korea as of 2026?

As of early 2026, mortgage rules in South Korea are tightening further, especially in Seoul and speculation-prone zones, which will constrain buyer purchasing power and could dampen price growth in the hottest submarkets.

The most significant recent foreign-buyer change is the introduction of a trading-permit system in Seoul and key neighboring areas as of mid-2025, which restricts foreign purchases to self-use only and aims to reduce speculative demand from overseas investors.

On the mortgage side, the stressed DSR system has been ratcheted up to a minimum 3% stress rate for loans in the Seoul metropolitan area, and LTV limits have been cut to 40% in speculation-designated zones, making it harder for multiple-home owners or buyers of high-priced properties to borrow.

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

Will it be easy to find tenants in South Korea as of 2026?

Is the renter pool growing faster than new supply in South Korea as of 2026?

As of early 2026, renter demand in South Korea's capital region is outpacing new rental supply, especially for apartments near major job centers and transit hubs, while provincial cities face more balanced or even oversupplied conditions.

The clearest signal of renter demand is ongoing household formation and concentration in Seoul, where over 26 million people live in the metropolitan area and young professionals continue to migrate for jobs, even as tighter mortgage rules push some would-be buyers into the rental market.

On the supply side, Seoul's apartment move-in volume is expected to drop by nearly half in 2026 compared to 2025, with only around 16,000 new units projected, which will keep the rental market tight in the capital while some provincial areas see more abundant completions.

Are days-on-market for rentals falling in South Korea as of 2026?

As of early 2026, days-on-market for rentals in Seoul's most desirable neighborhoods appear to be falling, reflecting tight supply and strong demand from renters priced out of purchasing by strict mortgage rules.

There is a notable gap between best areas and weaker zones: apartments near top schools in Gangnam, near major transit hubs like Yongsan, or in trendy districts like Seongsu tend to lease within days to a couple of weeks, while units in outer Seoul or provincial cities can sit for a month or more.

One common reason days-on-market falls in South Korea is the combination of limited new move-in supply in Seoul and the seasonal demand spike before the school year, which creates intense competition for well-located rentals every spring.

Are vacancies dropping in the best areas of South Korea as of 2026?

As of early 2026, vacancy rates appear to be dropping in Seoul's best-performing rental areas like Gangnam, Songpa (Jamsil), Yongsan, and Mapo, where demand from professionals and families with school-age children consistently exceeds supply.

These prime areas already had very low vacancy rates, often estimated at 2% to 4%, compared to a national average that can be higher in provincial cities and outer suburbs, meaning landlords in top Seoul districts enjoy much stronger occupancy.

One practical sign that the best areas are tightening first is the rising shift from jeonse (lump-sum deposit leases) to wolse (monthly rent) arrangements, as landlords find they can command recurring income in a tight market rather than locking in large upfront deposits.

By the way, we've written a blog article detailing what are the current rent levels in South Korea.

Am I buying into a tightening market in South Korea as of 2026?

Is for-sale inventory shrinking in South Korea as of 2026?

As of early 2026, for-sale inventory in South Korea is not shrinking uniformly: Seoul apartments show tighter supply after strong 2025 absorption, while national unsold inventory stood at around 68,000 units as of mid-2025, pointing to pockets of slack outside the capital.

Months-of-supply in prime Seoul districts often falls below three months, well under the balanced market benchmark of five to six months, which gives sellers an edge, but provincial markets can sit at six months or more, offering buyers more negotiating room.

One likely reason inventory is tightening in Seoul is that homeowners who locked in favorable mortgage rates earlier are reluctant to sell and give up their low borrowing costs, while new construction completions are dropping sharply in the capital region.

Are homes selling faster in South Korea as of 2026?

As of early 2026, median time-to-sell for homes in South Korea varies sharply by location: well-priced apartments in prime Seoul districts often sell within two to four weeks, while properties in slower regional markets or less liquid segments like villas can sit for two months or more.

Compared to a year ago, selling time in Seoul's hottest submarkets has likely shortened as demand absorbed the limited inventory, but in provincial cities and areas with unsold stock, days-on-market may have extended slightly as buyer pools remain constrained by tight credit.

Are new listings slowing down in South Korea as of 2026?

As of early 2026, we estimate that new for-sale listings in South Korea have slowed year-over-year in Seoul, where homeowners with favorable mortgage terms are staying put, though we are less confident about precise figures given data lags in official reporting.

Seasonally, new listings in South Korea tend to pick up in spring before the school year and again in fall, so current winter levels may look unusually low compared to peak seasons, but the structural slowdown in seller activity appears real.

The most plausible reason new listings are slowing in Seoul is the "rate lock-in" effect: owners who secured mortgages at lower rates before recent tightening are reluctant to sell, buy a new home, and take on a more expensive loan under today's stressed DSR rules.

Is new construction failing to keep up in South Korea as of 2026?

As of early 2026, new housing completions in South Korea's capital region are falling significantly short of household demand, with Seoul's projected move-in volume for 2026 down nearly 50% from 2025, creating persistent supply pressure.

The trend in permits and completions has been declining: government estimates suggest a cumulative shortfall of around 600,000 housing starts over the past four years due to delays in approvals and construction financing challenges.

The single biggest bottleneck limiting new construction in South Korea is project financing stress faced by developers, as rising interest rates and tighter lending have made it harder to fund new apartment projects, especially outside the guaranteed-demand zones of Seoul.

Will it be easy to sell later in South Korea as of 2026?

Is resale liquidity strong enough in South Korea as of 2026?

As of early 2026, resale liquidity in South Korea is strong for well-located apartments in Seoul and major metros, where standardized unit sizes and high demand mean homes reliably sell at realistic pricing within weeks, though villas and officetels can take considerably longer.

Median days-on-market for resale apartments in Seoul's prime districts often falls in the two to four week range, well within a "healthy liquidity" benchmark of under 60 days, while regional cities or non-apartment segments may stretch to 60 to 90 days.

The property characteristic that most improves resale liquidity in South Korea is proximity to high-quality subway or GTX stations, followed by school district reputation, because Korean buyers heavily prioritize transit access and education when making purchase decisions.

Is selling time getting longer in South Korea as of 2026?

As of early 2026, selling time in South Korea's hottest Seoul submarkets appears stable or slightly shorter compared to last year, while less liquid segments and provincial markets have likely seen selling times extend as buyer pools shrink under tight credit conditions.

Currently, median days-on-market in Seoul for well-priced apartments ranges from about 15 to 40 days, with the low end for prime Gangnam and Songpa units and the high end for outer districts, while regional cities can range from 45 to 90 days or more.

One clear reason selling time can lengthen in South Korea is affordability pressure: when prices outrun incomes and borrowing limits cap how much buyers can finance, the pool of eligible purchasers shrinks, forcing sellers to wait longer or cut prices.

Is it realistic to exit with profit in South Korea as of 2026?

As of early 2026, the likelihood of selling with a profit in South Korea is medium to high for buyers who hold for at least five to seven years, purchase in demand-strong locations like Seoul or major transit corridors, and avoid over-leveraging in today's tight credit environment.

The estimated minimum holding period that most often makes exiting with profit realistic in South Korea is around five to seven years, which gives enough time for typical appreciation to cover transaction costs and allows buyers to weather short-term volatility.

Total round-trip costs in South Korea, including buying and selling expenses, typically range from 6% to 12% of the property value (approximately 60 to 120 million KRW on a 1 billion KRW home, or roughly 43,000 to 86,000 USD or 40,000 to 80,000 EUR), so properties must appreciate meaningfully just to break even.

The single factor that most increases profit odds in South Korea is buying in areas with structural supply constraints and enduring demand drivers, like Seoul districts near top schools, major transit hubs, or upcoming GTX stations, rather than chasing hot trends in weaker markets.

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.