Seoul apartment prices keep rising amid cooling efforts

Capital housing market defies policy measures

Apartment prices in Seoul, South Korea’s bustling capital, continue to climb into 2026 despite a series of government actions designed to cool the real estate market. Official data indicate that prices have risen for nearly a full year without meaningful correction, driven by persistent demand and acute shortages of new units in desirable neighbourhoods.

Strong annual gains and extended weekly advances

In 2025, Seoul’s apartment prices surged by almost 9 %, marking the strongest annual increase in nearly two decades. That momentum has carried into 2026, with prices recording gains for more than 48 consecutive weeks. The extended run of growth underscores the underlying strength of demand in key districts and the limited impact of restrictive measures on overall price trends.

Drivers of sustained growth

Several factors underpin the ongoing price expansion. Tight restrictions on mortgage lending, including low loan-to-value caps and high cash down payment requirements, have limited financing options and constrained listings as owners hold onto properties. Buyers have shifted focus to preferred complexes and locations near transit and amenities. Despite cooling policies, the combination of limited supply and structural demand keeps upward pressure on prices.

Affordability challenges for buyers and renters

The relentless price climb is pushing homeownership further out of reach for many prospective buyers, particularly younger residents and first-time purchasers. As transaction volumes soften under regulatory pressure, competition for available units has intensified, which in turn drives up prices even when overall market activity cools.

Policy implications and future outlook

Persistent price increases present a dilemma for policymakers and the Bank of Korea, as they balance efforts to support economic growth with the risks of financial instability linked to property valuations. While additional government measures are planned, market participants remain sceptical about their immediate effect on prices, and analysts generally expect the housing market to remain tight in the near term.

As reported by experts at International Investment, the ongoing rise in Seoul apartment prices reflects deep-seated structural imbalances between supply and demand that are likely to sustain high property values and limit affordability, positioning the city’s housing sector as a key focus for investors and policymakers alike.