Seoul apartment average price nears W1.6b as jeonse breaks W700m for first time

An apartment complex in Seocho-gu, Seoul, seen Thursday morning. [Herald Business DB]

The average sale price of Seoul apartments is closing in on 1.6 billion won ($1.09 million), while the average jeonse price has surpassed 700 million won for the first time since records began. Monthly rent has also climbed more than 5% this year, with sale prices, jeonse and monthly rent all rising in tandem.

According to KB Kookmin Bank's July national housing price trend report released Monday, the average sale price of Seoul apartments stood at 1.59 billion won this month, based on data as of the 13th — up 11.79 million won from the previous month's 1.58 billion won.

The average price has risen 73.28 million won in six months from 1.52 billion won in January, amounting to an average increase of more than 10 million won per month this year.

By area, the average apartment price across the 14 Gangbuk districts stood at 1.17 billion won, while the 11 Gangnam districts averaged 1.98 billion won — just 22.1 million won short of the 2 billion won threshold.

Seoul's apartment price index rose 1.05% from the previous month to 106.9 (January 2026 = 100). All 25 autonomous districts in Seoul posted gains, though the sharpest increases were concentrated in Gangbuk.

Jungnang-gu led the city with a monthly gain of 2.08%, followed by Gangbuk-gu (2.01%), Seongbuk-gu (1.85%), Nowon-gu (1.60%), Gangseo-gu (1.59%), Seodaemun-gu (1.54%) and Dongdaemun-gu (1.44%).

Seocho-gu posted the smallest gain at 0.17%, with Yongsan-gu (0.30%), Gangnam-gu (0.30%), Jongno-gu (0.55%) and Mapo-gu (0.57%) also coming in below the Seoul average. Overall, the 14 Gangbuk districts rose 1.29% from the previous month, while the 11 Gangnam districts gained 0.84%.

The median apartment price in Seoul — the midpoint when all units are ranked by price — came to 1.28 billion won, up 155.83 million won from 1.12 billion won in January over six months.

The median price in the 11 Gangnam districts reached 1.62 billion won, up 21.67 million won from the previous month's 1.6 billion won. In the 14 Gangbuk districts, the median stood at 987.5 million won, just 12.5 million won short of the 1 billion won mark.

The upward trend in major areas of Gyeonggi Province continued from last month. Gyeonggi apartment sale prices rose 0.87% from the previous month in July, accelerating from June's 0.65% gain. Hwaseong's Dongtan district surged 6.25%, setting a new record high for a second straight month after a 4.16% rise in June. Suwon's Yeongtong district (3.06%), Gwangmyeong (2.52%), Guri (2.29%) and Yongin's Suji district (1.94%) also outpaced the Seoul average of 1.05%.

In contrast, Goyang's Ilsanseo-gu (-0.80%), Ilsandong-gu (-0.61%), Icheon (-0.52%), Paju (-0.31%) and Pyeongtaek (-0.22%) all declined, highlighting a widening regional divide. Gyeonggi jeonse prices also rose 0.86%, with the steepest gains in areas where sale prices have been strong — Dongtan district (3.04%), Gwangmyeong (2.71%) and Guri (2.33%).

Jeonse and monthly rent listings posted at a real estate agency in Eunpyeong-gu, Seoul. [Herald Business DB]

Jeonse prices are also climbing sharply. The average jeonse price for Seoul apartments this month reached 704.58 million won, up 8.39 million won from the previous month's 696.19 million won — the first time the figure has crossed the 700 million won mark.

Compared with 669.48 million won in January, the average has risen 35.1 million won, or 5.2%, over six months. The average jeonse price in the 11 Gangnam districts rose 9.11 million won from a month earlier to 811.04 million won, while the 14 Gangbuk districts gained 7.75 million won to reach 586.85 million won.

Seoul's apartment jeonse price index rose 1.34% from the previous month. Gangdong-gu posted the largest gain at 2.45%, followed by Seongbuk-gu (2.37%), Jungnang-gu (2.25%), Geumcheon-gu (2.19%), Gangbuk-gu (2.14%) and Nowon-gu (1.89%).

The monthly rent market, which has absorbed some demand shifting from jeonse, also showed clear upward momentum. Seoul's apartment monthly rent price index — calculated for mid-size and small-to-mid-size units with an exclusive use area of up to 95.86 square meters — reached 105.3 this month, up 5.3% from 100 in January and 0.60% from the previous month's 104.7.

Experts say that with Seoul apartment sale prices at the 1.6 billion won level and jeonse at 700 million won, the rapid rise in monthly rent — once seen as a relatively accessible option — is adding further strain on tenants' housing costs.

Kim Hyo-seon, a senior real estate specialist at KB Kookmin Bank, said that while last year's price gains were concentrated in high-end properties, this year mid- and lower-priced areas are catching up, pushing the overall average sharply higher. "As prices surge in mid-to-lower-priced areas, jeonse — a market driven mainly by end-users — is rising as well," she said.

Kim added that with supply falling short while demand continues to grow, a rapid rise in jeonse prices is to some extent unavoidable. "The monthly rent market, which doesn't show up clearly in the statistics, has probably risen even more in terms of what people actually feel," she said.

quq@heraldcorp.com