Seoul housing market sees rising rental deposits and narrowing price gaps

Seoul's real estate market is experiencing a widening gap between policy requirements and actual market costs, alongside a narrowing price gap between high-end and mid-to-low-end apartments.

In the Gangnam area, the deposit requirements for ‘Mirinae House’—a long-term rental program for newlyweds—have exceeded 1 billion won for several complexes. However, the eligibility asset threshold remains fixed at approximately 662 million won. Critics argue this discrepancy makes the program inaccessible to many, potentially benefiting only those with significant family financial support. While rental prices are tied to market appraisals, the asset limits have only increased by about 1% over the last two years, failing to keep pace with rising housing costs.

Simultaneously, the price gap between Seoul's expensive and affordable apartments has been shrinking for seven consecutive months. This trend is driven not by a decline in luxury home prices, but by record-high price surges in mid-to-low-cost areas such as Gangbuk, Jungnang, and Seongbuk. As loan regulations tighten, buyers are shifting toward more affordable districts, causing the median apartment price in Gangbuk to surpass 1 billion won for the first time.