Seoul Apartment Prices Rise for 31st Consecutive Week, Jeonse Market Maintains Strength

Supply Shortage Drives Price Increases

According to the Korea Real Estate Board's weekly trends for the first week of September 2025 released on September 10, Seoul apartment sale prices rose 0.08%, maintaining a 31-week consecutive upward trend. This matches the previous week's rate, showing the market regaining vitality after briefly pausing following the June 27 lending regulations.

New Supply Shortage as Primary Driver

Experts cite supply shortage as the main cause of Seoul apartment price increases. Seoul's new move-in volume decreased by over 22% compared to the previous year in 2025, resulting from reduced pre-sales and construction delays in 2023-2024.

Reconstruction expectations and residential demand centered on school districts and subway accessibility are driving price increases. Demand that had been waiting on the sidelines is partially returning to the market, sustaining the upward trend.

Jeonse Market Also Shows Concurrent Increases

Seoul apartment jeonse prices rose 0.07%, with the increase expanding by 0.01 percentage points compared to the previous week. Steady rental demand focused on preferred complexes, subway areas, and school districts is driving jeonse price increases.

Seoul and metropolitan area apartment jeonse prices are expected to rise due to supply shortages throughout 2025. Experts interpret Seoul jeonse price increases, supply cliffs, and unresolved project financing issues as indicators of a major real estate market uptrend.

Selective Increases Despite Reduced Transaction Volume

Overall buyer sentiment remains cautious. While transaction volume significantly decreased following the June 27 lending regulation measures, popular complexes in Seoul and the metropolitan area show price increases due to supply measures, reconstruction deregulation, and increased rental demand.

This suggests fundamental supply-demand imbalances persist despite reduced transaction volumes due to regulatory measures. Areas with high preference continue experiencing price pressure due to limited supply and steady demand.

A Korea Real Estate Board official stated that "new move-in supply volume, additional government supply policies, and interest rate levels will significantly impact medium to long-term market trends," advising market participants to approach carefully considering these factors comprehensively.

Original Korean Article: 한국어 원문 보기