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Seoul house prices post steepest rise in 6 months, ignite nationwide bump in real estate prices

Published: 15 Apr. 2025, 18:26

Apartments in Songpa District, southern Seoul, seen on March 6 [NEWS1]

House prices in Seoul surged in March, recording the steepest rise in six months and driving a nationwide uptick in real-estate prices, according to data released by the Korea Real Estate Board on Tuesday. Last September, it rose by 0.54 percent.

Districts recently designated as land transaction permit zones led the surge. Gangnam District saw prices rise 2 percent, followed by Songpa District at 1.71 percent, Seocho District at 1.6 percent and Yongsan District at 0.67 percent.

Prices also rose sharply in Gangdong District at 0.65 percent, Seongdong District at 0.9 percent and Yangcheon District at 0.61 percent.

Seoul’s surge pulled up the national average. After falling 0.06 percent in February, nationwide home prices edged up 0.01 percent in March.

Incheon and Gyeonggi still posted declines — 0.16 percent and 0.02 percent, respectively — but those drops narrowed compared to the previous month.

Jeonse prices in Seoul also climbed. Jeonse is a unique housing rental system in Korea where tenants pay a sizeable lump-sum deposit — often amounting to 60 to 80 percent of the property's market value — instead of paying monthly rent. The landlord holds this deposit for the duration of the lease, typically two years, and returns it in full when the contract ends. The landlord earns profit by investing the deposit during the lease term.

The average Jeonse price rose 0.17 percent in March, up from 0.06 percent in February. Jeonse prices in the broader Seoul metropolitan area rose 0.1 percent, while the nationwide average ticked up 0.03 percent.

Monthly rents for officetels — buildings that can house both residential and commercial tenants — also surged in the first quarter.

The Korea Real Estate Board reported a 0.49 percent rise nationwide in the first quarter this year, the largest since the third quarter of 2021.

Officetel rents rose fastest in Incheon at 1.3 percent and Ulsan at 0.97 percent.

In Seoul, rents increased by 0.44 percent as seasonal demand from college students and relocating tenants boosted the market.

The Korea Real Estate Board attributed the rise in officetel rents in the capital area to strong demand from office workers and newlyweds seeking properties with good transportation access.

Translated from the JoongAng Ilbo using generative AI and edited by Korea JoongAng Daily staff.

BY LEE HYUN [[email protected]]