South Korea’s Real Estate Market Shows Divergent Trends in January 2026
South Korea’s real estate market exhibited a mixed performance in January 2026, with residential properties showing increased transaction volumes although commercial and industrial sectors experienced declines. This divergence reflects differing impacts of interest rate changes and lending conditions on investment and actual demand, potentially signaling continued volatility in the near term.
Residential Market Rebound
Nationwide real estate sales transactions totaled 97,247 in January, a slight increase of 1.3% compared to the 96,041 recorded in the previous month, according to data from Real Estate Planet . The total transaction value reached 36.46 trillion won, a decrease of 1.6% month-over-month. However, compared to January 2025, both transaction volume and value increased significantly, by 52.3% and 75.2% respectively.
Apartment Transactions Lead the Growth
The increase in residential transactions was primarily driven by apartments. Nationwide apartment sales volume reached 46,259, with a transaction value of 22.5118 trillion won, representing increases of 14.5% and 18.2% respectively from December 2025. Fifteen out of seventeen cities and provinces across the country saw increased transaction volumes, with Sejong leading the gains at 33.7%, followed by Ulsan (29.6%), Daejeon (25.4%), and Gyeonggi (23.6%). Jeonnam (-13.6%) and Jeju (-15.8%) experienced declines.
Other Residential Sectors Also Rise
Transactions in the officetel market also saw positive movement, increasing by 8.6% in volume and 7.9% in value compared to the previous month. Gangwon province experienced a particularly substantial increase in transaction value, surging by 570.9% (from 1.2 billion won to 8.3 billion won). Condominiums and multi-family homes also contributed to the expansion of the residential market, with increases of 10.3% and 18.5% in transaction volume and value, respectively.
Commercial and Industrial Sectors Decline
In contrast to the residential market, commercial and industrial real estate generally underperformed. Commercial and office sales decreased by 7.8% in volume and 10.4% in value compared to December 2025. Commercial and office building transactions fell by 12.0% and 15.3% in volume and value, respectively. Land sales experienced the most significant decline, with transaction value plummeting 43.3% month-over-month.
Market Outlook
Jeong Soo-min, CEO of Real Estate Planet, noted that the January market demonstrated a rebound in residential transactions alongside a contraction in non-residential sectors, creating a mixed overall picture . The CEO suggests that continued volatility is possible as changes in interest rates and lending environments exert differing influences on investment and actual demand.
This report is based on actual transaction price data from the Ministry of Land, Infrastructure and Transport and is available through the Real Estate Planet mobile app and website.