Apartment complexes in southeastern Seoul's Songpa District, Thursday / Yonhap

Kim, a 34-year-old office worker in Seoul, spent an entire day recently visiting real estate brokers in Seoul's affluent southern districts south of the Han River. After finding a sales offer that checked all the boxes, he went back to consult with his wife before putting down money.

Within three days, as Kim and his wife scrambled to gather the cash, the owner suddenly raised the price by 100 million won ($69,084). Worse, when Kim returned to the area, no real estate brokers could offer him a similar property within his budget.

"How can the younger generation climb the economic ladder without buying real estate in the right locations?" Kim questioned.

For many, this question has become more pressing than ever. Despite fears of an economic recession, Seoul's housing market remains one of the few still riding a bullish sentiment.

The renewed frenzy was triggered by a policy change last month. Seoul Mayor Oh Se-hoon lifted regulations that had been in place to curb real estate speculation, citing concerns over property rights infringement. Previously, transactions in the area required government approval, and residential properties had a mandatory two-year occupancy condition.

The result? A sharp spike in property prices. According to the Korea Real Estate Board's weekly sales price index, housing prices in Seoul have been on an upward streak for four consecutive weeks.

The areas most directly affected — mainly Songpa District, Seocho District and Gangnam District — hit their upper price limits, marking the steepest increases since 2018. In February, the average price for an 84-square-meter apartment in the districts exceeded 2 billion won.

"If you want to secure an apartment in Gangnam right now, you need to have your money ready, wait on-site and transfer the payment the moment the account number is provided — only then do you have a chance. It's an absolute seller's market," said Kim In-man, the head of Kim In-man Real Estate and Economics Institute.

A woman looks at ads for apartments in front of a real estate broker's office in Songpa District, Seoul, Feb. 13. Yonhap

This stands in stark contrast to the prolonged slump in regional housing markets. In January, the number of newly built apartment flats that went unsold surged to 22,872 — the highest in 11 years and 3 months. About 80 percent of these units are concentrated outside the capital region.

Once-dominant regional construction companies are also collapsing one after another. Of the 29 construction firms that went bankrupt last year, 86.2 percent were based outside of Seoul.

"The regional housing market is struggling to clear its unsold inventory, even with measures like discounted sales," said Kim Ji-yeon, senior researcher at R114, a housing price information provider.

Industry experts attribute this growing market imbalance to public perception: as long as you buy in the right area, real estate remains a powerful vehicle for wealth accumulation.

"Some predict that Korea's housing market will undergo a significant correction due to the aging population. While it's true, key locations — like Gangnam — will hold their value even in an upcoming downturn, just as central Tokyo did during Japan's lost decades," wrote the owner of a popular Korean online real estate community, urging its members to actively invest in the Gangnam market.

"This would be the cheapest moment for Gangnam apartments," another wrote.

This optimism has been fueled further by the Bank of Korea's shift toward policy rate cuts, along with banks' tendency to ease mortgage loan restrictions early in the year.

Industry watchers anticipate that the regional polarization will only deepen.

"Everyone in the country knows that if you are going to own just one solid property, it should be in Gangnam," said Kim In-man, citing the region's top-tier infrastructure, prestigious schools and limited housing supply. "As long as the fear continues — that if you don't buy now, you'll be left behind — the irrational concentration of demand in Gangnam will only intensify."