South Korea's Housing Market Shows Widening Price Gap and Surge in Small Apartment Demand

A study of long‑term transaction data shows that the price gap between Seoul’s Gangnam district and Daegu’s Suseong‑Bangeo area has exploded over the past two decades. In the mid‑2000s, apartments in Gangnam sold for about 7‑9 billion won compared with 3‑4 billion won in Suseong. By 2026, Gangnam units regularly exceed 30 billion won while Suseong apartments remain around 10‑12 billion won, creating a disparity of roughly 20 billion won.

At the same time, sub‑60 m² apartments have become the hottest segment of the market. The average competition ratio for units of 60 m² or less this year was 13.97 to 1, more than four times the ratio for larger units, with some projects recording over 200 to 1 interest. Record‑high transaction prices for small units have been reported in Seoul neighborhoods such as Songpa‑Gu and Dongjak‑Gu. Analysts attribute the trend to rising construction costs, higher financing limits for lower‑priced homes, and improved space‑efficiency designs, suggesting strong and sustained demand for compact living spaces.