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Photo courtesy of Yonhap News |
[Alpha Biz= Paul Lee] Seoul, August 27, 2025 — The average transaction price of apartments in Seoul has dropped below KRW 1 billion for the first time in 29 months, largely attributed to the government’s new mortgage regulations announced on June 27. In contrast, the share of transactions involving mid- to low-priced units has risen as buyers seek to avoid heavy borrowing costs.
According to the Seoul Real Estate Information Plaza, as of August 27, the average apartment sale price in Seoul stood at KRW 908.23 million. The last time the figure fell below the KRW 1 billion mark was in March 2023, when it reached KRW 977.36 million. From April 2023 through July 2025, Seoul apartment prices had consistently averaged over KRW 1 billion, peaking at KRW 1.47294 billion in February this year amid a surge in high-end transactions following the lifting of land transaction permit zones in Gangnam.
Market watchers attribute the latest decline to the June 27 mortgage tightening measures, which significantly reduced transaction volumes in Seoul’s high-end districts. This month, only 6.7% (124 cases) of all reported apartment sales in the city (1,848 cases) came from the three Gangnam districts, down sharply from 21.7% (926 cases) during the same period last year.
Meanwhile, activity in the mid- to low-priced housing segment remains relatively robust. Apartments valued below KRW 1 billion accounted for 68% of all transactions so far this month, up 17 percentage points from 51% a year earlier.
알파경제 Paul Lee 특파원(hoondork1977@alphabiz.co.kr)
