Seoul’s Lower-Cost Housing Markets Gain as Villa Sales and District Demand Recover

  • Seoul villa prices exceeded apartment gains for a second month in June as lower-cost housing demand strengthened.
  • The villa transaction price index rose 3.43% to 166.3, while second-quarter transactions reached 11,536 units worth 4.9346 trillion won.
  • Five districts remained below earlier apartment peaks in August, although Jungnang reached 103.3 and owner-occupier demand remained strong.

Seoul’s villa market outpaced apartment price growth for a second consecutive month in June, while five lower- and mid-priced districts remained below their earlier apartment peaks in the fourth week of August. The Seoul row house and multiplex housing actual transaction price index rose 3.43% month on month to 166.3, versus a 2.50% increase for apartments, and second-quarter villa transactions rose 24.4% year on year to 11,536 units worth 4.9346 trillion won ($3.6 billion). Apartment prices in Gangbuk, Dobong, Nowon, Eunpyeong and Geumcheon remained below previous highs, although Jungnang exceeded its early-2022 peak with an index of 103.3. Demand is being supported by record apartment prices, fewer jeonse listings, borrowing capacity for homes below 1 billion won, tax incentives and redevelopment prospects, but buyers still face valuation, rights-eligibility, project-progress and jeonse-fraud risks.

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