South Korea Luxury Residential Real Estate Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022-2027)

The market is segmented by Type (Apartments and Condominiums, Villas and landed houses) and by Cities (Seoul, Busan and Other Cities). The report offers market size and forecasts for luxury residential real estate market in South Korea for all above segments.

Market Snapshot

South Korea Luxury Residential Real Estate Market Forecast
Study Period: 2018-2027
Base Year: 2021
CAGR: >3 %

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Market Overview

The luxury residential real estate market in South Korea is expected to register a CAGR of approximately 3% during the forecast period.

Property in South Korea is measured in units of pyeong, an area of floorspace equivalent to about 36 square feet. In his current portfolio, a real estate agent listed a 48 pyeong (1,710 square foot) four-bedroom, two-bathroom unit in Central I-Park, a complex completed in 2018, for USD 2.74 million. A 20-pyeong (712 square feet) two-bedroom, two-bathroom duplex in a new development, which is scheduled for completion in May 2023, is currently listed for KRW 2.55 billion (USD 2.28 million) for presale on the real estate platform Seoul Homes.

Detached houses can be found in South Korea, although these very rarely come on the market. Property of this type is often a little older but boasts a generous footprint and frequently features a garden or terrace. Usually, expatriates settle down in high-rise flats, preferring a brand-new building or at least one not older than 10 years. If they want more space or privacy, they search for a villa or single house, although these are limited in Seoul. Wealthy tycoons, upwardly mobile expatriates employed by the district’s major businesses, and upper-middle-class Koreans in search of the best educational opportunities for their families live In the Gangnam district. Residents from overseas are most likely to come from the U.S. and China, with Chinese buyers responsible for 60% of international real estate investments in South Korea from 2015 to September 2019.

Although foreign investors’ nationalities are not revealed, people from mainland China, Hong Kong, and Japan have been buying residential properties in Busan by attending investor conferences held in South Korea. Foreigners can buy a residential property in South Korea without restrictions, but it is difficult for non-residents to obtain local mortgages. Buyers tend to get a mortgage in their country or pay with cash, according to property investment site Asia Property HQ.

Scope of the Report

Prime location, high-end interior finishes such as marble countertops, professional-quality kitchen appliances, customized closets, and hotel-like amenities such as concierge services, a top-of-the-line fitness center, and a spa center are often staples of a luxury building. The luxury residential real estate market in South Korea is segmented by type and by city. By type, the market is segmented into apartments and condominiums, villas, and landed houses. By cities, the market is segmented into Seoul, Busan, and other cities.

By Type
Apartments and Condominiums
Villas and Landed Houses
By City
Other Cities

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Key Market Trends

Increasing Real Estate Prices in South Korea

Despite efforts of the government to slow soaring home prices, the country’s property market has proved resilient, with Gangnam real estate, in particular, showing decisive growth. The average price of a home in Gangnam rose by 6.1% from KRW 59.3 million (USD 53,000) per pyeong on October 30, 2020, to KRW 62.93 million (USD 56,300) in March 2021.

Prices are expected to continue to increase, with the market buoyed by the rollout of Covid-19 vaccines and prospects of economic recovery. In Seoul, the election of the new mayor on April 7 has also sent prices soaring. Seoul has continued to see large gains, with apartment prices rising from KRW 607millon (USD 503,647) in May 2017 to KRW 925million (USD 767,507) in June 2020. Meanwhile, in Busan, values have stabilized, with apartment prices rising from KRW 290 million in May 2017 to KRW 295 million in June 2020.

Since mid-2017, the South Korean government has implemented housing market calming measures such as raising LTV mortgage rates and property taxes for home buyers and companies who own multiple expensive homes, as well as increasing capital gains tax rates in overheated areas, including South Korea’s capital Seoul and Busan. Property prices have drastically increased nationwide over the last few years, but an upward trend seems unlikely to continue because of the tax changes for multiple homeowners and expensive single homes.

South Korea Luxury Residential Real Estate Market Report

Concentration of Luxury Real Estate in Gangnam District, Seoul

Gangnam is arguably South Korea’s best-known neighborhood. One of 25 districts that make up the capital Seoul. As it is a district where demand outstrips supply, most of the available residential real estate in Gangnam can be found in luxury condominiums. Units in these developments come complete with private parking, a spa, a gym, a pool, 24-hour security, and exceptional views. In a country known for its high standards of education, Gangnam is considered the South Korean center for learning, just one of several reasons that make its real estate so sought after.

The district is home to 557,000 people, accounting for just 2.5% of Seoul’s population, but is responsible for 25% of the city’s gross domestic product, an impressive statistic for a district that was farmland until the 1970s. Some of South Korea’s biggest stars own property in the area. It has also attracted investment from the country’s richest families. It is predicted that the existing demand for expensive homes in Busan will move to Seoul if multiple homeowners can only buy one home in South Korea, so long as demand from overseas buyers for Busan luxury housing does not increase.

South Korea Luxury Residential Real Estate Market Outlook

Competitive Landscape

South Korea Luxury Residential Real Estate Market is fairly fragmented, with local and global players existing in the market. Key players in the market are leveraging partnerships, acquisitions, and mergers to capture the market share. Some of the major players in the market include Samsung C&T Corporation, Daewoo Engineering & Construction, KyeRyong Construction Industrial, Hoban Construction, and DL Construction.

Recent Development

December 2021: Jungheung Group, a business group built around second-tier construction companies, has taken over Daewoo Engineering & Construction (Daewoo E&C), the 5th-largest builder in Korea. Jungheung Group announced on Dec. 9 2021 that it has signed a stock purchase agreement (SPA) with KDB Investment to acquire its 50.75% stake in Daewoo E&C. It signed the main contract for the takeover of Daewoo E&C five months after being selected as the preferred bidder in July 2021. By acquiring Daewoo E&C, Jungheung has become one of the top four builders in Korea. The group has Jungheung Construction and Jungheung Engineering and Construction as its affiliates.

April 2022: Daewoo Engineering & Construction Co., a major builder in South Korea, developed and launched “Meta Gallery” service, a model house using a video game engine for virtual experiences. This first-person view (FPV) service allows users to move around a virtual space just like playing a game with direct control, thereby enabling them to look around in a more realistic way. To bring a higher sense of realism to users, Daewoo E&C used a unity engine for video game development and a three-dimensional BIM (Building Information Modeling) model. The company joined hands with telecom operator KT Corp. to allow users to enjoy high-resolution graphics more easily through GameBox, KT’s subscription-based game streaming service, without the need to download large files.

Table of Contents


    1. 1.1 Study Deliverables

    2. 1.2 Study Assumptions

    3. 1.3 Scope of the Study


    1. 2.1 Analysis Methodology

    2. 2.2 Research Phases



    1. 4.1 Market Overview

    2. 4.2 Market Dynamics

      1. 4.2.1 Drivers

      2. 4.2.2 Restraints

    3. 4.3 Value Chain / Supply Chain Analysis

    4. 4.4 Industry Policies and Regulations

    5. 4.5 Technological Developments in the Sector

    6. 4.6 Industry Attractiveness - Porter's Five Forces Analysis

    7. 4.7 Impact of COVID-19 on the Market


    1. 5.1 By Type

      1. 5.1.1 Apartments and Condominiums

      2. 5.1.2 Villas and Landed Houses

    2. 5.2 By City

      1. 5.2.1 Seoul

      2. 5.2.2 Busan

      3. 5.2.3 Other Cities


    1. 6.1 Market Concentration Overview

    2. 6.2 Company Profiles

      1. 6.2.1 Samsung C&T Corporation

      2. 6.2.2 Daewoo Engineering & Construction

      3. 6.2.3 KyeRyong Construction Industrial

      4. 6.2.4 Hoban Construction

      5. 6.2.5 DL Construction

      6. 6.2.6 Daebang Construction

      7. 6.2.7 Ssangyong Engineering & Construction

      8. 6.2.8 Dongbu Corporation

      9. 6.2.9 Bando Engineering & Construction

      10. 6.2.10 Hyosung Heavy Industries*

    3. *List Not Exhaustive


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Frequently Asked Questions

The South Korea Luxury Residential Real Estate Market market is studied from 2018 - 2027.

The South Korea Luxury Residential Real Estate Market is growing at a CAGR of >3% over the next 5 years.

Samsung C&T Corporation, Daewoo Engineering & Construction, KyeRyong Construction Industrial, Hoban Construction, DL Construction are the major companies operating in South Korea Luxury Residential Real Estate Market.

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