The Bank of Korea said on the 22nd that the market capitalization of dwellings in Korea last year was 7,710 trillion won, up 571 trillion won (8%) from the end of the previous year. The increase was larger than the previous year (269 trillion won, 3.9%). The nationwide dwellings market capitalization growth rate had posted negatives for two straight years starting in 2022, but began to rise in 2024. It reflects higher home prices in the greater Seoul area, including Seoul.
According to the Bank of Korea's "provisional 2025 national balance sheets" released that day, Seoul's dwellings market capitalization was 2,894 trillion won, the largest among all cities and provinces nationwide. The year-over-year increase was also the highest at 15.9%. Dwellings market capitalization is defined as residential buildings plus the land attached to residential buildings. Next were Gyeonggi (2,192 trillion won, 6.3%), Busan (398 trillion won, 2%), and Incheon (341 trillion won, 0.8%), the data was found. The share accounted for by the greater Seoul area was 70.4%, up 1.8 percentage points from the previous year (68.6%).
Real estate assets, the sum of residential and nonresidential buildings and land assets, came to 17,836 trillion won, up 709 trillion won (4.1%) from a year earlier. Real estate's share of nonfinancial assets also rose 0.3 percentage points to 76.6% from the previous year.
The broadest measure of land market aggregates was 12,660 trillion won, up 554 trillion won (4.6%) from the end of the previous year. The pace of increase widened from the previous year (217 trillion won, 1.8%). By city and province, Seoul was the largest at 4,507 trillion won. Gyeonggi was 3,492 trillion won, Incheon 580 trillion won, and Busan 562 trillion won. The increase was also largest in Seoul at 10.8%.
The Bank of Korea analyzed that as the price growth rate of dwellings expanded, it also lifted prices of other land. A Bank of Korea official said, "It is judged that the impact of real estate measures on the growth rates of residential or appurtenant land prices was not significant."