Analysis of Seoul Apartment Prices during Population Decline Era

Abstract

Since the early 2020s, South Korea has faced a population decrease due to the lowest birth rates globally, but the apartment prices in capital regions covering Seoul, capital city of South Korea and Gyeonggi-do, have ironically shown a consistent upward trend. This thesis explores the persistent rise in apartment prices despite diminishing population in Seoul, providing insights into the economic and social factors affecting this trend. Through an analysis of the characteristics of Seoul apartments, including the unique Jeonse system, and the impacts of population trends by region, this research demonstrates the broader implications of single person household trends and aging population demographics. Furthermore, comparative case studies from Japan and France supports the relationship between aging populations and housing markets. By applying various indices related to apartment prices, this study demonstrates the correlations between apartment prices and demographic changes, consequently exploring the potential future scenarios for the housing market in Seoul.