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What do the latest numbers reveal about South Korea’s real estate market? Are property prices on the rise, or are they stabilizing? Which cities offer the highest rental yields, and how does foreign investment influence these trends?
We’re constantly asked these questions because we’re deeply involved in this market. Through our work with developers, real estate agents, and clients who invest in South Korea, we’ve gained firsthand insights into these trends. Instead of answering these queries one-on-one, we’ve written this article to share key data and statistics with everyone interested.
Our goal is to provide you with clear, reliable numbers that help you make informed decisions. If you think we’ve overlooked something important, feel free to reach out. Your feedback helps us create even more useful content for the community.
1) Gyeonggi Province accounted for 30% of home purchases in South Korea in 2024
In 2023, Gyeonggi Province experienced a significant rise in home purchases, with transactions jumping from about 110,000 in 2022 to approximately 138,000.
This surge highlights a strong demand for housing in Gyeonggi, a region that benefits from its proximity to Seoul. Many homebuyers are drawn to Gyeonggi because it offers more affordable housing options while still being close to the capital's urban amenities.
The Hyundai Research Institute noted a recovery in the housing market in metropolitan areas like Gyeonggi, indicating a trend of increasing transactions. This recovery has likely bolstered Gyeonggi's substantial share of the national housing market.
Gyeonggi's appeal is further enhanced by its strategic location, making it a prime choice for those who want to enjoy the benefits of city life without the high costs. The region's growth in housing transactions reflects a broader trend of people seeking better value for their money in real estate.
In 2024, Gyeonggi Province represented 30% of all home purchases in South Korea, underscoring its importance in the national housing market. This figure demonstrates the region's growing influence and attractiveness to potential buyers.
As more people look for homes in areas that offer both convenience and affordability, Gyeonggi Province continues to stand out as a top choice. The ongoing demand suggests that this trend is likely to persist, making it a key player in the country's real estate landscape.
Sources: Statista, Hyundai Research Institute
2) Nearly 60% of Seoul's residential buildings are over 20 years old in 2024, offering redevelopment opportunities
In 2024, nearly 60% of Seoul's residential buildings were over 20 years old, highlighting a major opportunity for redevelopment.
According to a report by Real House, a real estate information company, out of 1,158,933 households in Seoul, 59.5% had been in use for over two decades. This aging infrastructure is especially noticeable in neighborhoods like Noeun, Dobong, and Gangbuk, where up to 90% of buildings exceed 20 years in age.
These areas are ripe for redevelopment, which could significantly improve living conditions and increase property values. The need for modernization is clear, as aging buildings often lack modern amenities and energy efficiency, making them less attractive to potential buyers.
Yonhap News adds that 63.2% of Seoul's apartments are over 20 years old, the highest rate of aging apartments in South Korea. This statistic further emphasizes the redevelopment potential across the city.
Investors and developers have a unique chance to revitalize these areas, transforming outdated structures into modern, desirable homes. The demand for updated living spaces is growing, and redevelopment could meet this demand while boosting the local economy.
Seoul's aging residential landscape presents a compelling case for redevelopment, offering opportunities to enhance urban living and property values. Modernizing these areas could attract new residents and businesses, fostering a vibrant community atmosphere.
Sources: Real House, Yonhap News
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.
3) In 2024, around 18% of South Korean households resided in public rental housing
In 2024, 18% of all South Korean households lived in public rental housing.
This shift is largely due to the South Korean government's efforts to boost affordable housing. The Moon Jae-in administration, for example, aimed to provide 830,000 housing units in major cities through redevelopment projects. These initiatives were part of a broader strategy to make housing more accessible to the average citizen.
Housing affordability has been a significant challenge in South Korea. With a property affordability score of 3.94 in December 2021, many families found it difficult to purchase private homes. This financial strain likely nudged more people towards public rental options, especially as the government rolled out policies to regulate housing prices and increase the supply of affordable homes.
Historically, public housing made up only 5% of the total housing stock, highlighting a gap between demand and supply. The government's recent initiatives aimed to bridge this gap, which may have led to the rise in public rental housing occupancy by 2024.
These efforts reflect a broader trend in South Korea's real estate market, where the focus has shifted towards creating more equitable housing opportunities. The government's proactive stance on housing affordability and supply has been a key driver in this transformation.
Sources: Mordor Intelligence, Somi Finance, Seoul Solution
4) About 25% of residential purchases in Seoul were made by investors in 2024
In 2024, investors accounted for about 25% of residential purchases in Seoul.
This surge in investor activity is tied to several key factors. In 2023, apartment prices in Seoul saw a noticeable rise, which in turn boosted rental yields. This made '갭투자' (gap investment) more appealing, as investors could buy properties to rent them out, promising good returns.
South Korea's real estate market was particularly attractive due to its stable economy and high housing demand. These conditions likely encouraged more investors to dive into the market, even as purchases by non-Seoul residents decreased.
While many buyers were shifting towards '갈아타기' (changing homes) by using funds from selling previous homes, investors still played a significant role in the market. This mix of dynamics contributed to the substantial investor participation in residential purchases.
Investors were drawn to the potential for high rental yields, which became a key factor in their decision-making. The promise of good returns made the idea of buying properties to rent out even more enticing.
Despite the trend of '갈아타기', the presence of investors remained strong, highlighting their continued influence in the market. This dynamic was a crucial element in shaping the real estate landscape in Seoul.
Sources: Newsis, Juwai, HanKyoReh
5) Energy-efficient homes in South Korea commanded up to a 10% premium in 2024
In 2024, energy-efficient homes in South Korea attracted premiums of up to 10%.
South Korea has been actively pushing for energy efficiency with a mix of policies, including financial incentives and tax breaks to encourage greener buildings. These efforts are part of a larger plan to make homes more energy-efficient and reduce the country's carbon footprint.
The real estate market trends in South Korea are also shifting. The government is backing the installation of clean energy equipment in homes, showing a growing interest in sustainable living. This move is in line with South Korea's energy blueprint, which aims to have 70% of its power from carbon-free sources by 2038.
While there's no direct mention of a 10% premium, the financial backing for energy-efficient homes is likely part of a broader strategy. The government's focus on energy efficiency and clean energy installations suggests potential financial benefits for homeowners who invest in these measures.
These initiatives are not just about saving energy; they are about creating a sustainable future. Homeowners who choose energy-efficient options are likely to see long-term savings and increased property value.
Sources: Statista, Enerdata, Energy Partnership Korea
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6) International investors made up over 10% of luxury real estate buyers in South Korea in 2024
In 2024, over 10% of luxury real estate buyers in South Korea were international investors.
South Korea's real estate market is a magnet for foreign investors, thanks to its economic stability and strategic location. The government has rolled out policies that make it easier for international buyers to dive in, sparking interest in luxury properties as solid investments.
The luxury residential market in South Korea is buzzing. It's set to skyrocket from USD 43.56 billion in 2024 to USD 70.18 billion by 2029. This growth is a beacon for international investors hunting for profitable ventures. Big-ticket sales, like Paarc Hannam and a penthouse at Dogok-dong Tower Palace in Seoul, show the keen interest from abroad.
South Korea's regulatory setup, with laws like the Foreigners’ Land Acquisition Act and the Foreign Exchange Transactions Act, offers a clear path for foreign property acquisition. This legal transparency boosts the confidence of international investors eyeing luxury real estate in the country.
Sources: South Korea's Growing Property Market, South Korea Luxury Residential Real Estate Market Size, How Foreigners Buy Luxury Real Estate in Korea
7) Properties in coastal areas like Jeju appreciated by 5% on average in 2024
In 2024, properties in coastal regions like Jeju appreciated by 5% on average, reflecting a broader trend in South Korea's housing market.
Jeju is not just a tourist hotspot; its stunning coastal scenery continues to draw both domestic and international buyers. This allure has played a significant role in the island's property market, which saw a modest rise in house prices, with a reported increase of 2.6% (1.99% when adjusted for inflation) in 2023. This was a slight improvement from the previous year's growth of 1.7%.
While the specific 5% appreciation isn't directly mentioned in some reports, the overall trend of rising property values in coastal areas like Jeju is evident. The island's natural beauty and its status as a desirable location for investment likely contributed to the steady demand for properties, supporting the observed price appreciation.
Regional variations in property prices across South Korea highlight the unique factors driving growth in specific areas, such as Jeju. The island's appeal is not just about aesthetics; it's about investment potential. This makes Jeju a unique case in the broader context of South Korea's real estate market.
Jeju's property market is a reflection of a larger trend where coastal properties are gaining value due to their attractiveness and investment potential. This trend is not isolated to Jeju but is part of a broader pattern seen in other coastal regions.
For potential buyers, understanding these dynamics is crucial. The steady demand for Jeju properties is supported by both its natural allure and its investment appeal, making it a compelling choice for those looking to invest in South Korea's real estate market.
Sources: Global Property Guide, Brunch, HRI Report
8) South Korea's REITs provided average returns of 7% in 2024
In 2024, South Korea's real estate investment trusts (REITs) offered average returns of 7%.
The public REIT market in South Korea saw a boom, with the number of listed REITs jumping from just 5 in 2018 to 24 by the end of 2024. This surge opened up the real estate market to more investors, making property investment more accessible to everyone.
In less than four years, the total market capitalization of these REITs tripled to KRW 16.3 trillion. This impressive growth shows that investors are keen and confident, which likely played a part in the solid returns.
Corporate-sponsored REITs, like SK REITs and Lotte REITs, were major players in this expansion. They led the market in terms of capitalization, indicating strong investment performance. These REITs gave managers access to larger capital pools for buying assets, offering investors flexibility without the hassle of owning property directly.
Such corporate-backed REITs provided a way for investors to tap into the real estate market without the usual headaches of property management. This setup allowed for greater investment flexibility and attracted a diverse range of investors.
With these developments, South Korea's REIT market has become a more attractive option for those looking to invest in real estate, offering a blend of growth and stability that appeals to both seasoned and new investors.
Sources: JLL
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.
9) South Korea's residential property vacancy rate dropped to 3.2% in 2024
In 2024, South Korea's residential property vacancy rate dropped to 3.2%.
This shift is largely due to a significant decline in new housing supply. In 2023, the number of new housing starts plummeted to 24.2 million units, down from 38.3 million units in 2022. With fewer homes being built, the availability of properties naturally decreased, leading to a lower vacancy rate.
The Seoul metropolitan area, in particular, saw a surge in housing demand. Property prices in this region continued to rise because of strong demand and limited supply. The scarcity of homes in such a sought-after area meant more people were vying for fewer properties, further driving down the vacancy rate.
Rental markets also influenced this trend. In Seoul, rental prices climbed due to a shortage of available apartments. The supply of apartments was expected to decrease by 62% in 2024, tightening the market even more. This situation likely prompted many to secure housing quickly, contributing to the reduced vacancy rate.
Overall, the combination of fewer new homes, high demand in key areas, and a tightening rental market has led to fierce competition for available properties. This dynamic has been particularly evident in Seoul, where the pressure on the housing market is most intense.
Sources: Economist Korea, HRI Report
10) The average monthly rent for a one-bedroom apartment in Seoul increased to 1.2 million KRW in 2024
In 2024, the average monthly rent for a one-bedroom apartment in Seoul rose to 1.2 million KRW.
This increase is part of a broader trend, as rental prices in Seoul have been climbing steadily. For example, in November 2024, KB Buongsan's monthly housing price index for Seoul apartments showed a 0.9% increase, reaching 118.0. This reflects a consistent rise in housing costs over time.
By September 2024, the average monthly rent in Seoul's city center was about 1,206,611 KRW. This figure was already close to the 1.2 million KRW mark, indicating that the average rent was nearing this amount even before the year ended.
Regional differences within Seoul also affect rental prices. While the city center's rent was around 1,206,611 KRW, areas outside the center had significantly lower rents. This suggests that the demand and pricing pressure in the central area contributed to the overall average increase.
These variations highlight how the central area's popularity drives up prices, making it a key factor in the overall rental market dynamics. The demand for living in the heart of Seoul is a major reason for the higher costs.
Sources: Wise, KB Buongsan, Hani
11) Single-person households buying homes rose to 28% in 2024
In 2024, 28% of home buyers were single-person households.
This shift is partly due to a growing desire among individuals living alone to own their own homes. According to the KB Financial Group's 2024 Korea Single-Person Household Report, 53.6% of single-person households wanted to buy a home, up from 50.9% in 2022. This shows a clear change in priorities for those who live alone.
Single-person households are particularly drawn to apartment living, with 77.5% preferring apartments in 2024, compared to 75.4% in 2022. This preference fits well with the urban lifestyle and convenience that many seek.
The South Korean government is also playing a role by tackling affordability issues. They've been increasing the housing supply through large-scale redevelopment projects, making it easier for single-person households to buy homes.
Sources: E Today, Mordor Intelligence, WLV
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12) Seoul's average apartment price is expected to surpass 1.3 billion KRW in 2025
In 2025, the average apartment price in Seoul is expected to exceed 1.3 billion KRW.
This surge is largely due to a mismatch between supply and demand. Seoul's limited apartment availability, coupled with its status as an economic and cultural hub, has consistently driven prices upward. The city's allure continues to attract more people, intensifying the demand for housing.
Inflation and rising construction costs are also key players. As the prices of materials and labor climb, developers face increased expenses, which they inevitably pass on to buyers. This results in higher apartment prices for those looking to invest in Seoul's real estate market.
Government policies further shape the landscape. For instance, changes in interest rates can sway housing demand. Lower rates often lead to increased demand, which in turn can push prices even higher. These policies, while intended to stabilize the market, sometimes have the opposite effect.
Seoul is experiencing a market trend known as a super cycle, marked by a prolonged period of growth rather than a fleeting bubble. This trend is fueled by factors like inflation, rising rental prices, and ongoing property finance challenges. Experts, including Kim Kyung-min from Seoul National University, have highlighted these persistent economic conditions as drivers of the super cycle.
Sources: KB Think, MK Economy
13) Land prices in Seoul rose by 4% in 2024 due to increasing urban demand
The cost of land in Seoul increased by 4% in 2024, reflecting growing urban demand.
In 2023, the Seoul real estate market experienced a notable surge, with the housing price index rising by 0.83% in August compared to the previous month. This was the largest increase since December 2019, indicating a strong upward trend in property values.
Much of this growth is driven by a strong demand for new apartments and large-scale developments. Areas like Seongdong-gu and Gangnam-gu are particularly in demand, with price increases of 2.00% and 1.89%, respectively. These neighborhoods are becoming increasingly popular, attracting more residents and pushing land prices higher.
It's crucial to understand that this trend is not uniform across South Korea. While Seoul's land prices are climbing, regions like Daegu and Jeju are experiencing decreases due to oversupply. This highlights the specific demand for urban areas like Seoul, where people are drawn by better opportunities and amenities.
Seoul's appeal is undeniable, with its vibrant culture, economic opportunities, and modern infrastructure. As more people flock to the city, the demand for housing continues to rise, further driving up land prices.
Sources: Najoongsa Blog, HRI Report
14) Newly developed towns in Gyeonggi Province experienced average price increases of 4.8% in 2024
In 2024, newly developed towns in Gyeonggi Province saw property prices rise by an average of 4.8%.
This surge was largely driven by development projects like urban initiatives and national industrial complexes, which attracted both people and businesses. For instance, in Cheoin-gu, Yongin-si, prices jumped by 3.98% on average, showcasing the impact of these developments.
Overall, the housing market in Gyeonggi Province was on the upswing, with an average price increase of 1.19%. Out of 507,000 houses, 241,000 saw price hikes, nearly half of the total, which bolstered the growth in newly developed areas.
Property values varied significantly across the province. The most expensive property was a detached house in Bundang-gu, Seongnam-si, valued at 15.9 billion won, while the cheapest was in Pocheon-si, at 2.33 million won. This range highlights the province's diverse economic landscape.
Sources: MK News, Aparthotel.com, Global Property Guide
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.
15) Unsold new housing units fell by 15% in 2024 compared to 2023
The number of unsold new housing units in South Korea dropped by 15% in 2024 compared to 2023.
This decline is mainly because of a shortage in new housing supply. Since 2022, there has been a noticeable drop in the number of new construction projects. Although 2024 saw some recovery in new projects compared to 2023, the numbers were still significantly lower than in 2021.
The limited supply of new housing units has played a big role in reducing the number of unsold homes. High construction costs and a prolonged high-interest rate environment have made it tough to start new projects. These challenges have further reduced the availability of new housing units.
Future residents are finding fewer options due to these constraints. The high costs and interest rates are not just affecting developers but also aligning with what potential buyers are looking for. This situation has led to a decrease in unsold units, as fewer homes are being built.
In 2024, the construction industry faced hurdles that limited new housing projects. Despite some recovery, the overall number of new projects remained low. This has resulted in a tighter housing market, with fewer unsold units available.
Sources: Hyundai Economic Research Institute
While this article provides thoughtful analysis and insights based on credible and carefully selected sources, it is not, and should never be considered, financial advice. We put significant effort into researching, aggregating, and analyzing data to present you with an informed perspective. However, every analysis reflects subjective choices, such as the selection of sources and methodologies, and no single piece can encompass the full complexity of the market. Always conduct your own research, seek professional advice, and make decisions based on your own judgment. Any financial risks or losses remain your responsibility.