Seoul Apartment Prices Rise for 84th Week: Lee Jae-myung's Housing Policies and Market Reaction

The defining characteristic of today’s Seoul property market is the entrenchment of a long-term upward trend. Apartment purchase prices in Seoul have climbed for 84 consecutive weeks, a streak stretching from the third week of January 2025 through the second week of September 2026. According to Maeil Business TV, Seoul apartment prices surged 14.56% year-over-year. While nationwide home prices rose by a modest 0.32% in August, Seoul recorded a 0.97% leap—more than triple the national rate. This divergence underscores that upward price momentum is overwhelmingly concentrated within Seoul and prime urban centers rather than regional markets.

More alarming is the growing instability in the *jeonse* rental market, which traditionally serves as a vital stepping stone toward homeownership for middle- and working-class families. Data from the Korea Real Estate Board (as of the second week of September) shows that cumulative *jeonse* rates in Seoul have climbed 7.79% year-to-date, marking what market analysts describe as the steepest lease price surge in 11 years.

Even outside the affluent southern Gangnam district, newly built complexes across northern Seoul—including Seongbuk and Dongdaemun districts—have seen actual transaction prices for standard 84-square-meter units (often referred to as the benchmark "national housing size") reach approximately 1 billion KRW (approx. $750,000 USD). A self-reinforcing cycle has taken hold across prime metropolitan corridors: skyrocketing sale prices elevate *jeonse* rates, and high *jeonse* values subsequently form a price floor that supports further appreciation in sale prices.

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As upward price pressure reached a boiling point, the Lee Jae-myung administration reiterated its firm commitment to market intervention through official addresses and press briefings. President Lee delivered an unequivocal message that his administration will "stabilize the real estate market at all costs," focusing executive power on restoring residential stability.

The centerpiece of this policy response is the "August 13 Housing Supply Measures," tailored to eliminate concerns over housing shortages in downtown Seoul. The policy is built on an aggressive, all-out supply framework (*dak-gong*) that drastically streamlines the permitting process and rolls back regulations for urban redevelopment and reconstruction. By sharply compressing project timelines for underutilized urban land and key renewal sites, the government aims to send an unambiguous signal to the market regarding future housing deliveries.

Simultaneously, policymakers are fine-tuning the property tax regime. While upholding the foundational principle of protecting owner-occupants, the administration is considering targeted tax relief on inheritance taxes and multi-homeowner levies ahead of the Chuseok holiday to resolve market gridlock and stabilize public sentiment. The objective is to mitigate tax resistance and incentivize property owners to release locked-up inventory into the secondary market.

Conversely, public rental housing policy aimed at vulnerable populations faces structural headwinds. Several public rental complexes in Seoul are reporting elevated vacancy rates and, in some cases, zero applicants on their waitlists due to location and demographic mismatches. These outcomes have sparked debate over the efficacy of public housing programs that prioritize sheer numerical quotas over livability and actual tenant demand.

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Despite the central government's focus on deregulation and accelerated project approvals, skepticism persists among market experts and municipal authorities regarding the practical impact of these policies.

Most notably, Seoul Mayor Oh Se-hoon publicly challenged the administration's market diagnosis during a press interview, pushing back against the President’s rhetoric on market stabilization. Mayor Oh argued that addressing the capital's supply-demand imbalances requires structural recalibration, warning that the administration's current approach risks fueling further price spikes rather than containing them. He stressed that a speed-driven campaign conducted within a heavy regulatory framework cannot effectively disperse concentrated housing demand in central urban cores.

Real estate economists and market practitioners highlight three primary structural bottlenecks:

1. **Supply Lock-In Effects:** Accumulated regulatory burdens and capital gains taxes on multi-homeowners have significantly suppressed transaction volumes in the secondary market. This supply contraction has directly spilled over into the rental market, accelerating the transition toward monthly rent contracts (*wolse*) and driving up *jeonse* prices. 2. **Friction Over New Site Designations:** Efforts to secure urban infill sites have triggered community resistance. For instance, designating degraded sections of Yeomchang Park for public housing development has sparked fierce opposition from local residents, creating friction at the implementation stage. 3. **Localized Capital Concentration:** Liquidity and speculative interest are concentrating disproportionately in marquee reconstruction hubs with prime locations, such as the Mok-dong district. Consequently, easing redevelopment rules risks igniting localized overheating. Administrative speed alone cannot bridge the multi-year lag between initial permit issuance and physical move-in dates.

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As the market enters the peak autumn moving season of 2026, the housing sector stands at a critical juncture that will determine the longevity of recent policy initiatives.

In the near term, a pivotal factor is whether proposed adjustments to inheritance and multi-homeowner taxes will successfully unlock existing housing stock across Seoul before the Chuseok holiday. Without clear exit ramps for multi-homeowners that complement owner-occupant protections, the inventory shortage and the era of "1-billion-won *jeonse*" leases are likely to intensify through the remainder of the year.

Over the medium to long term, policy success hinges on how rapidly the August 13 Measures convert into tangible, completed housing units that end-users can occupy. Successfully navigating community resistance during site selection and correcting the spatial and qualitative mismatches exposed by vacant public housing units will serve as key tests of policy credibility.

Between the central government’s strong commitment to price stabilization and divergent assessments from local authorities like the Seoul Metropolitan Government, market participants remain watchful over whether Seoul’s 84-week apartment rally can transition toward sustained, long-term equilibrium.