The South Korean housing market is beginning to show signs of stabilisation following a period of market correction and slowing price growth, according to the latest research from eXp Korea.
The study analysed the latest South Korean house price index data from the Bank for International Settlements (BIS) to assess the market’s longer-term trajectory.
Between Q4 2020 and Q4 2025, the South Korean housing market recorded average quarterly growth of 0.5%.
The market experienced exceptionally strong growth throughout 2021, with quarterly house price growth peaking at 4.0% in Q1 2021 and remaining above 3.0% for much of the year.
CORRECTION PHASE
However, from late 2022 through to mid-2023, the market entered a correction phase as higher borrowing costs and changing market conditions weighed on buyer activity, resulting in quarterly price declines.
More recently, the market appears to have gradually returned to stability, with house prices recording modest quarterly increases throughout most of 2025.
The data highlights the cyclical nature of the South Korean housing market while reinforcing the importance of taking a longer-term view when assessing overall market health and resilience.
It also suggests that the rapid growth experienced during the pandemic housing boom has now transitioned into a more balanced and sustainable market environment.
SUSTAINABLE ENVIRONMENT
Thomas Kim, CEO of eXp Korea, says: “The South Korean housing market has undergone a significant correction period over the past few years following the rapid growth experienced during the pandemic.
“What the current data suggests is that the market is beginning to stabilise and return to a more balanced and sustainable environment.
“Correction periods are a natural part of mature housing markets, particularly following phases of unusually strong growth and heightened buyer activity.
“What’s important is that the market continues to demonstrate long-term resilience, with buyer demand still present despite a more cautious economic backdrop.
“As the market evolves, local expertise, pricing accuracy and operational adaptability are becoming increasingly important for both agents and sellers navigating changing conditions.”
