Seoul Apartment Prices Show Stark Divide: Gangnam Soars, Outskirts Lag
Seoul, South Korea - A widening gap in Seoul’s apartment market is becoming increasingly pronounced, with prime districts like Gangnam experiencing dramatic price increases while outlying areas see comparatively little growth, according to a new analysis by real estate data firm Ziptos. Some apartments in Seoul have increased in value by 600 million won (approximately $460,000 USD) in the past year, highlighting a “hyper-polarized” market trend.
The data reveals a clear preference among buyers for newer and older apartments, with those aged 5-10 years and over 30 years leading price gains. Semi-new apartments (5-10 years) saw the highest increase rate at 13.9%, averaging a 241.27 million won rise. Apartments over 30 years old, fueled by reconstruction expectations, followed closely with a 13.8% increase, or an average of 233.22 million won. This trend indicates strong demand for both the comfort of modern living and the potential for future redevelopment.
This polarization extends to apartment size. While small apartments under 50㎡ experienced a modest 4.0% growth (averaging a 34.25 million won increase), medium and large apartments over 50㎡ saw growth rates exceeding 12%. Notably, large units exceeding 85㎡ jumped by an average of 314.6 million won, suggesting affluent buyers are driving demand through “transfer” purchases.
“It is true that the apartment market in the metropolitan area has recently entered an overall upward trend, but if you analyze the data in-depth, you can see that a ‘hyper-polarized’ market is unfolding, with the level and extent of the upward trend being sharply divided by region, age, and size,” said Jae-yoon Lee, CEO of Ziptos. “Multidimensional polarization could be a factor that quickly deepens the asset gap in the future.”
Apartments aged 10 to 30 years, falling into an “ambiguous age” bracket, experienced comparatively slower growth and appeared relatively overlooked by investors. The analysis underscores a growing disparity in Seoul’s real estate landscape, with implications for affordability and wealth distribution.
