Apartment Prices in Seoul Surge 14.7% Under Lee Jae-myung Administration

Since the inauguration of the Lee Jae-myung administration, apartment prices in Seoul have risen approximately 14.7% over the past year. According to KB Real Estate, this marks the highest increase recorded in the first year of any government since the statistics began in 1986.

Both jeonse (long-term lease) and monthly rental prices 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 referred to as 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 price increases have varied significantly by region, with the outer areas of Seoul and non-Gangnam districts showing particularly strong growth.

However, other surveys have indicated that prices in Seoul may have risen by over 15%. An analysis by Real Estate R114 from June 2025 to May 2026 found that apartment prices in Seoul increased by more than 15%, while national apartment prices rose by about 9%.

In the Real Estate R114 survey, certain non-Gangnam districts such as Gwangjin, Dongjak, Jung, Gangdong, and Seongdong saw price increases exceeding 20%. In Gyeonggi Province, key areas like Seongnam, Gwangmyeong, Hanam, Anyang, Yongin, and Gwacheon also experienced price hikes of over 10%.

It is important to note that it is not just sales prices that have risen.

According to KB Real Estate, during the first year of the Lee Jae-myung administration, the average jeonse price for Seoul apartments increased by 6.77%. Monthly rents also rose by 8.99%, marking the highest increase rate recorded since KB began tracking rental prices 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.

Recently, Seoul has seen 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 for multiple homeowners.

Notably, the June 27 real estate measures effectively imposed strict limits on mortgage 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 home prices has persisted.

According to statistics from the Korea Real Estate Agency, the comprehensive sales price of homes 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.

In the following months, the upward trend in Seoul home prices continued. The Korea Real Estate Agency reported that in June 2026, the comprehensive sales price of homes in Seoul rose by 1.03% in one 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 the average sales price of Seoul apartments increased by 1.05% compared to the previous month, with significant increases in districts such as Jungnang (2.08%), Gangbuk (2.01%), and Seongbuk (1.85%).

The key factor in this increase is that the price surge has been concentrated in Seoul and the metropolitan area, particularly in Seoul apartments. While the national housing market continues to struggle, only Seoul and certain metropolitan areas are experiencing strong price growth, leading to a widening gap in prices between regions.

Data from KB Real Estate also shows that the price disparity between the top 20% and bottom 20% of apartments, measured by the quintile ratio, expanded from 11.6 times just before President Lee Jae-myung'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 housing 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 since the Lee Jae-myung administration took office, the Seoul apartment market has seen an increase of approximately 14.7% to 15%. The simultaneous rise in jeonse and monthly rents has also increased the burden of housing costs for residents in Seoul.

* This article has been translated by AI.

Apartment Prices in Seoul Surge 14.7% Under Lee Jae-myung Administration