Seoul’s apartment market has shifted toward smaller and previously lower-priced homes amid tighter mortgage rules, record pre-sale prices and a shortage of jeonse listings. Apartments exceeding 40㎡ and up to 60㎡ rose 10.41% from December 2025 to August 2026, the fastest gain among surveyed size categories, while apartments in 10 mid-to-low-priced districts rose 11.15% year over year as of last month. Jeonse rents in those districts increased 10.10%, the first simultaneous double-digit rise in sales prices and jeonse rents since district-level statistics began in January 2012. Analysts said the shortage followed Seoul’s designation as a land transaction permit zone last October, which blocked gap investments and reduced jeonse supply, while the government’s 600 million-won mortgage cap for purchases in the capital region and regulated areas encouraged downsizing. Seoul’s average 84㎡ pre-sale price reached 1.94 billion won, and its average apartment jeonse price reached 636.63 million won last month, increasing pressure on non-homeowners and young adults.