Nationwide home prices lag, but Seoul's luxury homes see second-highest global rise

While South Korea's overall housing price increase ranks low among major countries, high-priced homes in Seoul are experiencing some of the steepest surges globally.

This divergence highlights a growing polarization within the nation's housing market. Luxury properties, particularly in Seoul's affluent Gangnam district and along the Han River, have seen significant price hikes. In contrast, housing prices in non-metropolitan areas and for general residential properties have shown relatively sluggish performance.

Analysis from the Korea Institute for Future Research suggests this trend is exacerbating wealth inequality. The disparity between the booming luxury market and the stagnant general market is becoming more pronounced, raising concerns about market stability and accessibility for average citizens.

The report, titled 'Asset Inequality and Property Tax,' delves into the factors contributing to this dual market dynamic. It points to a concentration of investment and demand in high-value segments, while other areas lag behind.