Seoul's Luxury Housing Prices Surge to World’s Second Highest Rise

A private research firm ranked Seoul’s top‑5 % housing prices as the second‑fastest rising among 46 major global cities last year, with a 25.2 % year‑on‑year increase, trailing only Tokyo’s 55.9 % gain. Over the past five years Seoul’s high‑end market has risen 80.9 %, placing it fourth after Dubai, Tokyo and Manila. By contrast, the OECD’s real‑price index shows a modest 1.2‑fold rise since 2000, well below the OECD average.

Domestically, the Korean housing‑price outlook index has hit a five‑year high, while new apartment supply has fallen to about half of the five‑year average, fueling continued price growth despite loan caps and tax measures. Analysts cite a “FOMO” mentality and limited land‑supply, especially in Gangnam and other high‑value districts, as key drivers. The government is also debating a full relocation of administrative functions to Sejong as a long‑term strategy to ease Seoul‑centric pressure.