Seoul Ranks 4th in Global Housing Prices – More Expensive Than New York or London?
Seoul is now ranked the 4th most expensive city in the world for housing. Explore what drives this trend and how it compares globally.
Understanding Why Seoul Is Among the World's Most Expensive Cities in 2025
📁 Table of Contents
- Global Housing Price Rankings in 2025
- Why Is Seoul So Expensive?
- Price-to-Income Ratio: A Red Flag
- How Does Seoul Compare to Other Cities?
- What Does It Mean for Residents and Policymakers?
- Sources
1. Global Housing Price Rankings in 2025
According to Deutsche Bank's 2025 "Mapping the World's Prices" report, Seoul ranks as the 4th most expensive city in the world for housing. Topping the list are:
- 1st: Hong Kong
- 2nd: Zurich
- 3rd: Singapore
- 4th: Seoul
This places the South Korean capital above major cities like London and New York, traditionally known for their high real estate costs.
2. Why Is Seoul So Expensive?
Several structural factors contribute to Seoul's housing unaffordability:
- Urban centralization: Excessive demand in key areas like Gangnam, Seocho, and Yongsan
- Limited supply: Slow redevelopment and constrained land availability
- Speculative demand: Real estate seen as a prime investment vehicle
- Policy uncertainty: Frequent changes in government housing policies create instability
3. Price-to-Income Ratio: A Red Flag
The Price-to-Income Ratio (PIR) reflects the number of years of average income required to purchase a home. In 2025:
- Seoul: 13–18 times the average annual income
- OECD Average: 5–7 times
- Zurich: 15x | Singapore: 14–16x | New York: 10–13x
In other words, for many residents in Seoul, buying a home is a multi-decade financial commitment.
4. How Does Seoul Compare to Other Cities?
| City | Avg. Home Price | PIR | Key Characteristics |
|---|---|---|---|
| Hong Kong | Highest globally | 18x+ | Severe land scarcity, foreign investment |
| Zurich | Very high | 15x | Stable supply, financial hub |
| Singapore | Rising fast | 14–16x | Privatized housing, limited land |
| Seoul | $850,000+ | 13–18x | High demand, speculative market |
| London | Moderating | ~12x | Post-Brexit market adjustment |
| New York | Varies by area | 10–13x | Manhattan vs. outer boroughs |
5. What Does It Mean for Residents and Policymakers?
Seoul's high housing prices are more than a ranking. They reflect:
- Housing inequality: Growing divide between owners and renters
- Youth disillusionment: Younger generations unable to afford homes
- Urban outmigration: People leaving Seoul for affordable alternatives
Policymakers must now focus on long-term affordable housing solutions rather than short-term price control measures.
6. Sources
- Deutsche Bank (2025). Mapping the World’s Prices Report
- OECD Housing Statistics
- KoreaHerald.com, BusinessInsider, SGAnalytics
❓ FAQ – Frequently Asked Questions
Q1. Is Seoul really more expensive than New York or London?
Yes — in terms of Price-to-Income Ratio (PIR) and affordability.
While property prices in Manhattan or Central London are still extremely high, Seoul's PIR (13–18×) exceeds both cities, meaning homes are much less affordable relative to local incomes.
Q2. What does PIR mean, and why is it important?
PIR (Price-to-Income Ratio) shows how many years of average income it takes to buy a home.
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OECD recommends a PIR of 3–5 as affordable.
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Seoul's PIR of up to 18 signals a significant housing accessibility crisis.
Q3. Are Seoul residents investing in real estate or just trying to survive?
Both. Real estate in Seoul is viewed as a primary wealth-building tool.
However, younger generations increasingly find themselves priced out of the market and unable to enter even with full-time jobs and savings.
Q4. Why is Seoul’s housing market so concentrated in apartments?
Apartments dominate due to land scarcity, high-density urban planning, and a cultural preference for new high-rise developments.
Single-family homes are rare and usually far more expensive per square meter.
Q5. Is this a housing bubble in Seoul?
Some analysts suggest that prices have outpaced fundamentals, but others argue that long-term structural constraints (limited land, urban migration) keep demand high.
Nevertheless, policy stability and better supply management are crucial to avoid speculative overheating.
Q6. Can foreigners buy real estate in Seoul?
Yes, but with certain legal and financial restrictions.
Foreign buyers must report real estate acquisitions and follow local regulations. Mortgages may be harder to obtain without Korean residency or income.
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