Housing market in South Korea - statistics & facts

The housing market in South Korea grew in response to the lowering of central bank rates during the start of the coronavirus (COVID-19) pandemic. During this time, many prospective homeowners sought loans at lower rates to purchase homes, a step many young Koreans generally see as necessary toward adulthood and future financial solvency. Since then, central bank rates have tightened, leading to a notable slump in the housing market. Although a certain degree of price stabilization was achieved in the first months of 2023, several factors point toward slower market recovery, such as the affordability of housing and worries concerning jeonse deposit fraud cases.

How affordable is housing in South Korea?

By the third quarter of 2022, the Korean housing affordability index (K-HAI) had reached over 89 points. The K-HAI measures the share of income necessary for a median-income family to repay a standard mortgage on a median-priced home, with higher values reflecting a heavier financial burden when purchasing a home. The index in Seoul was almost double that of the next-highest regional index, showing significant polarization between the capital and other provinces. However, with the number of unsold homes having almost doubled in some areas, the price of housing is expected to decline in the future.

Cases of jeonse fraud

One aspect of the South Korean housing market that cannot be overlooked is the concept of jeonse. Jeonse is a rental deposit system unique to the country where tenants pay large amounts of money up-front, usually around 70 percent of a property’s value, in exchange for a two-year tenancy with little to no monthly rent. However, a recent string of jeonse fraud cases has led to reports of victims losing the entirety of their assets. In such cases, tenants are robbed of their deposits due to unknown or undisclosed landlord debt, property auctions, or some other kind of fraudulent cause. The social impact of the domestic housing market has been palpable, as several jeonse fraud cases have been connected to victims of suicide in the past year.
This text provides general information. Statista assumes no liability for the information given being complete or correct. Due to varying update cycles, statistics can display more up-to-date data than referenced in the text.
Published by Statista Research Department, Jul 18, 2023

Key insights

Number of residential buildings
4.57m units
Most typical housing type
Apartments
Average living space per person
33.9 square meters
Get more insights

Editor’s Picks Current statistics on this topic

Most expensive areas to live in Seoul as of May 2023, based on average apartment selling price (in million South Korean won)

Apartments

Most expensive areas to live in Seoul South Korea 2023

Most expensive apartments in South Korea in 2023, based on actual transaction value (in billion South Korean won)

Apartments

Most expensive apartments South Korea 2023, by transaction value

Distribution of housing units in South Korea in 2021, by type

Building Construction

Share of housing units South Korea 2021, by type

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