The photo shows residential houses and apartment complexes in Seoul, as seen from Namsan in Jung-gu, Seoul. (Image courtesy of Yonhap)
SEOUL, Jan. 27 (Korea Bizwire) — For the first time in history, transactions of Seoul apartments priced above ₩900 million accounted for more than half of the city’s total sales in 2024, reflecting a shift toward high-end properties amid rising home prices and a preference for “one solid investment.”
According to the Ministry of Land, Infrastructure, and Transport, 53.8% of Seoul’s 56,800 apartment transactions last year exceeded ₩900 million. This marks a significant jump from 2018, when only 16.6% of transactions surpassed that price. At the time, most sales (60.9%) involved apartments priced below ₩600 million.
The trend has been driven by years of low interest rates, policy shifts like the 2020 introduction of South Korea’s rental reform laws, and a strong preference for premium properties in affluent areas such as Gangnam and popular districts like Mapo, Yongsan, and Seongdong.
Government initiatives like the special housing loan program introduced in 2023 and newborn-specific mortgage benefits in 2024 have aimed to make homes priced below ₩900 million more accessible. However, high-end property transactions continue to rise, indicating a growing demand for luxury real estate.
Data from KB Kookmin Bank shows that the median apartment price in Seoul rose from ₩845.02 million in 2018 to ₩983.33 million in 2024, while the average price increased from ₩815.95 million to ₩1.27 billion during the same period.
Meanwhile, transactions of ultra-high-end apartments have surged. Apartments priced over ₩5 billion (approximately $3.8 million) accounted for 0.72% of all sales in 2024, up from just 0.04% in 2018. Similarly, contracts for apartments priced above ₩10 billion rose from none in 2020 to 23 transactions in 2024, up from six in 2023.
As Seoul’s real estate market continues its upward trajectory, the divide between affordable and premium housing grows wider, underscoring the increasing polarization in the city’s property landscape.
M. H. Lee (mhlee@koreabizwire.com)
