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Rent dreams aside, prioritize investment madly: Apartments' allure as a lucrative quick-fortune strategy in South Korea

Soaring apartment prices, particularly in Seoul, Korea, make property ownership a risky investment venture, aiming for quicker and more substantial returns than stocks. This rush, however, contributes to an inflationary bubble.

Investment opportunities abound in Korea's real estate market, with apartments being the current...
Investment opportunities abound in Korea's real estate market, with apartments being the current hot ticket for those chasing quick riches while postponing rest until tomorrow.

Rent dreams aside, prioritize investment madly: Apartments' allure as a lucrative quick-fortune strategy in South Korea

In the heart of South Korea, the fever for apartments in central Seoul remains unshaken, despite a slowing economy and government attempts to cool the market. Housing prices in all regions except Seoul have experienced a decrease in the first half of the year, according to the Bank of Korea.

Seoul's apartment market is currently characterized by persistently high and rising prices, with the city having some of the most expensive apartments globally. Apartment prices have increased substantially over the past five years, with unit prices in Seoul reaching about $22,875 per square meter, surpassing major global cities like New York and London.

In the first half of 2025, while housing prices fell in most other regions of South Korea, prices in Seoul and its surrounding area rose slightly, by about 0.39%. This trend continued into July 2025, with apartment prices increasing by 0.49%, albeit at a slightly reduced rate after the government’s stricter household debt regulations were announced in late June.

The government, under President Lee Jae Myung, has responded to rising prices and concerns about household debt by imposing strict loan regulations in June 2025. These policies aim to moderate demand and prevent social issues linked to high housing costs, such as the low birth rate. Nevertheless, the Bank of Korea has delayed interest rate cuts due to worries over household debt accumulation.

Apartments remain the dominant housing choice in Seoul, accounting for around 71% of housing purchases in 2025. Southeastern Seoul, which includes affluent districts such as Gangnam-gu and Seocho-gu, commands the highest average apartment prices.

The demand for apartments in Seoul is supported by cultural preferences and financial incentives. However, the Bank of Korea's report does not specify the reasons for the slow growth in Seoul's housing market, nor does it provide details on the specific regions where housing prices have decreased.

The report also does not discuss any government measures aimed at addressing the housing market issues, nor does it provide any forecasts for future trends in the housing market. Rents are climbing in Seoul, prompting calls for the Korean government to present a clear roadmap for housing supply to address this issue.

It's worth noting that Seoul Sky, an observatory at the top of the Lotte World Tower, is another apartment complex located in the Songpa District, southern Seoul. The cafe offers a stunning view of the Han River. The cafe is situated in the Raemian One Bailey apartment complex in the Seocho District, southern Seoul. Another apartment complex, Gaepo Xi Presidence, is located in Gangnam, southern Seoul, and features an infinity pool.

Despite these challenges, Seoul's apartment market remains very hot and expensive, with price increases continuing into 2025. The government focuses on managing the associated risks of surging household debt and socio-economic impacts, while the demand for apartments in Seoul remains strong.

  1. The government's stricter household debt regulations, announced in June 2025, have slightly reduced the rate of apartment price increases in Seoul, but the market still demonstrates resilience.
  2. In the context of an international arena, Seoul's apartment prices continue to outshine major global cities like New York and London, making real-estate investing in Seoul an attractive proposition for some global financiers.
  3. The Korean government, under President Lee Jae Myung, is facing increasing pressure to present a clear roadmap for increasing housing supply in Seoul, addressing the rising rents and calls for affordable housing.
  4. The persistent demand for apartments in Seoul, influenced by cultural preferences and financial incentives, has led to ongoing concerns about the national economy, as the government attempts to balance potential growth with the socio-economic impacts of housing costs.

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