Lee Jae-myung's administration has seen apartment prices in Seoul rise approximately 14.7% over the past year. According to KB Real Estate, this marks the highest increase in the first year of any government since the statistics began in 1986.
Both jeonse (long-term lease) and monthly rents have also increased. During the same period, the average jeonse price for Seoul apartments rose by 6.77%, while monthly rents increased by 8.99%. This simultaneous rise in both sales and rental markets has led to what is being termed a 'triple increase' phenomenon.
Seoul Apartment Prices Rise 14.73% in One Year
According to KB Real Estate's monthly housing price statistics, the cumulative increase in Seoul apartment sales prices from May of last year to May of this year is 14.73%.
This figure surpasses the initial year increases of previous administrations, with the Moon Jae-in administration at 9.41% and the Roh Moo-hyun administration at 11.68%.
Notably, the disparity in price increases has been significant, particularly in the outskirts of Seoul and non-Gangnam areas.
However, other surveys have indicated that prices in Seoul have risen by over 15%, drawing attention.
An analysis by Real Estate R114 from June 2025 to May 2026 showed that apartment prices in Seoul increased by more than 15%, while national apartment prices rose by about 9%.
The Real Estate R114 survey indicated that certain non-Gangnam areas, such as Gwangjin-gu, Dongjak-gu, Jung-gu, Gangdong-gu, and Seongdong-gu, experienced price increases exceeding 20%. In Gyeonggi Province, key areas like Seongnam, Gwangmyeong, Hanam, Anyang, Yongin, and Gwacheon saw apartment prices rise by over 10%.
The issue is not just the increase in sales prices.
According to KB Real Estate, during the first year of the Lee Jae-myung administration, the average jeonse price for Seoul apartments rose by 6.77%. Monthly rents also increased by 8.99%, marking the highest rate of increase in the first year of any major government since KB began tracking rent statistics in 2015.
The rise in jeonse prices could impact the sales market as well. If jeonse prices continue to climb, tenants may face increased housing costs, potentially shifting some demand to the sales market.
In fact, Seoul is currently experiencing a simultaneous shortage of jeonse listings and rising jeonse prices. Experts suggest that loan regulations and restrictions on multiple homeowners may have affected the supply of rental housing.
Despite Government Regulations, Home Prices Continue to Climb
Since taking office, the Lee Jae-myung administration has implemented various policies aimed at stabilizing the real estate market, including loan regulations, expanding land transaction permission zones, and increasing capital gains taxes on multiple homeowners.Notably, the June 27 real estate measures effectively imposed strict limits on housing loans in the metropolitan area, while the October 15 measures further expanded land transaction permission zones, reinforcing demand suppression policies.
Despite these efforts, the upward trend in Seoul's housing prices has persisted.
According to statistics from the Korea Real Estate Agency, the comprehensive housing sales price in Seoul rose by 0.95% in June 2025 and 0.75% in July. Specifically, apartment prices increased by 1.44% in June and 1.09% in July. Although the rate of increase slowed after the June 27 measures, it remained significant.
The upward trend in Seoul's housing prices has not abated. The Korea Real Estate Agency reported that in June 2026, the comprehensive housing sales price in Seoul rose by 1.03% over the month, while the metropolitan area saw a 0.67% increase and the national average rose by 0.33%.
In July, KB Real Estate reported that Seoul apartment sales prices increased by 1.05% compared to the previous month, with Jungnang-gu at 2.08%, Gangbuk-gu at 2.01%, and Seongbuk-gu at 1.85%, indicating high growth rates in the northern districts.
The key aspect of this increase is that it has been concentrated in Seoul and the metropolitan area, particularly in apartment prices. While the national housing market continues to struggle, only Seoul and certain metropolitan areas are experiencing significant price increases, leading to a widening gap in regional prices.
Data from KB Real Estate also shows that the price disparity between the top 20% and bottom 20% of apartments has expanded from a ratio of 11.6 times just before President Lee's inauguration to 13.4 times one year later. This indicates a growing asset gap between Seoul and other regions, as well as between high-end and mid-to-low priced housing.
Ultimately, the biggest variables for the future of the real estate market will be whether the increase in supply translates into actual housing availability, how effectively loan and tax regulations can suppress buyer sentiment, and whether demand for housing in Seoul remains strong.
Based on current statistics, it is clear that apartment prices in Seoul have risen by approximately 14.7% to 15% since the Lee Jae-myung administration took office, with rising jeonse and monthly rents further increasing the burden of housing costs in the city.
* This article has been translated by AI.
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