As December 2025 draws to a close, Seoul finds itself at the intersection of two formidable challenges: a housing market under mounting stress and a brutal winter cold snap that has gripped the city and much of South Korea. Both crises, while distinct, are reshaping daily life and government priorities in the nation’s capital.
On December 26, 2025, just after the Christmas holiday, a powerful cold air mass swept across the Korean Peninsula, plunging temperatures to the lowest levels seen since the start of the winter season, according to the Korea Meteorological Administration (KMA). In Seoul, thermometers dipped to around -12 degrees Celsius that morning, but biting winds made it feel even colder—down to a staggering -17 degrees Celsius. In the mountainous region of Gapyeong, the mercury threatened to fall as low as -20 degrees Celsius. Even as the sun rose higher in the sky, the day’s high in Seoul was only expected to reach -4 degrees, promising a city locked in ice for hours on end.
These frigid conditions have not been without consequence. On the evening of December 25, a water pipe burst in Seoul’s Gangdong district, sending water gushing onto the streets. The water quickly froze, creating treacherous conditions for drivers and pedestrians alike. Emergency crews acted swiftly, draining the water, repairing the pipe, and spreading salt to prevent further accidents. The city government responded by activating a comprehensive severe cold support center, focusing on infrastructure protection, preventing further pipe bursts, and delivering support to vulnerable groups.
Medical experts, quoted by VietnamPlus, have urged residents to take the cold seriously. "People should protect their health and keep warm to avoid cold-related illnesses during this prolonged cold period," they advised, echoing public health campaigns seen in previous harsh winters. The KMA has issued severe cold warnings for Seoul, its surrounding areas, and the central provinces of Gangwon and North Chungcheong, with forecasts suggesting the cold snap could persist until the morning of December 28. Only weeks earlier, on December 4, heavy snow blanketed Seoul and Gyeonggi province, with snowfall accumulating at rates exceeding 5 centimeters per hour, further straining city services and infrastructure.
Yet even as Seoul contends with winter’s wrath, another crisis looms—one that’s less visible but no less urgent. On December 10, 2025, the Bank of Korea (BoK) reported that the housing market risk index for Seoul had climbed to 0.90, its highest level since the index was introduced in 2018. This figure reflects a growing disconnect between soaring housing prices and the underlying fundamentals of the South Korean economy. The primary culprit, according to the BoK, is a sharp decline in housing supply.
Nationwide, the number of completed housing units is expected to plummet to about 250,000 in 2026, down from 342,000 in 2025. In Seoul itself, new housing supply is forecasted to reach just 16,000 units—roughly half the average seen over the past three years. This shortfall can be traced back to decisions made two to three years ago, when tighter project financing and rising construction costs caused many developments to stall. The consequences of those policy choices are now being felt acutely, as would-be homebuyers and renters face limited options and escalating prices.
South Korea’s housing market is unique in several respects. Instead of paying monthly rent, many tenants in Seoul put down deposits of 50-70% of a property’s value. After a standard two-year contract period, landlords are required to return the full deposit. This system, while offering some stability, also means that sudden market shifts or liquidity crises can have outsized impacts on both tenants and property owners.
Compounding these pressures, the South Korean government has recently introduced new regulations for foreign buyers. Those seeking to purchase homes in designated areas will now need to submit detailed documentation outlining their purchase plans. The move is aimed at increasing transparency and preventing speculative activity in the most sought-after neighborhoods.
Real estate’s centrality to the South Korean economy cannot be overstated. According to recent data, property accounts for more than 60% of the total assets held by South Koreans—a figure that far surpasses the ratios seen in most other developed economies. This heavy reliance on real estate as a store of wealth makes the market’s health a matter of national concern, and any instability can ripple through household finances and broader economic indicators.
Meanwhile, the housing crunch is not confined to Seoul alone. Across Asia, real estate markets are under strain. In China, for instance, the ongoing crisis at Vanke is testing the government’s approach to managing prolonged turmoil in the property sector, which has already had disruptive effects on the world’s second-largest economy. In India, by contrast, real estate investment is booming, with domestic investors accounting for 52% of the $10.4 billion poured into the sector, and international funds making up the remaining 48%, according to JLL.
Back in Vietnam, local real estate associations are also responding to shifting market dynamics. On December 26, 2025, the Real Estate Association of Can Tho City held its fourth congress for the 2025–2030 term, a sign of ongoing adaptation and reform. That same day, the People’s Council of Ho Chi Minh City approved a new land price table, effective January 1, 2026, designed to bring official land values closer to market rates and improve unified land management following recent administrative mergers.
Hanoi, too, is at a crossroads. After decades of grappling with aging apartment complexes and deteriorating housing blocks, the city is embarking on a new wave of urban renewal, aiming to replace outdated structures with modern developments. To ensure that future projects are executed efficiently and safely, a new contractor evaluation and ranking system is being developed. The hope is that this will help investors choose reliable partners and reduce risks for large-scale construction efforts.
Despite the current headwinds, there is cautious optimism for 2026. Industry observers expect the real estate market to stage a clear recovery as housing supply increases, regulations are improved, and stalled projects resume. The goal, according to experts cited by Bất động sản, is to move toward a more transparent and stable market—one that can weather both economic shocks and the harshest of winters.
As Seoul braces for a few more days of bone-chilling cold and residents keep a wary eye on the housing market, the city’s resilience is once again being tested. With robust government action and a collective determination to adapt, there is hope that both crises can be managed—and perhaps even turned into opportunities for renewal and reform.
