Seoul Apartment Prices Slow for Fifth Week as Gangnam, Yongsan Decline

Seoul apartment prices rose 0.09% in the first week of March, marking the fifth consecutive week of slowing gains, according to data released Wednesday by the Korea Real Estate Board.

The city's most prestigious districts—Gangnam, Seocho, Songpa, and Yongsan—posted declines for the second straight week. Songpa fell 0.09%, Gangnam dropped 0.07%, Yongsan declined 0.05%, and Seocho slipped 0.01%. All except Songpa saw steeper declines than the previous week. Gwacheon, often called "quasi-Gangnam," fell for a third consecutive week.

Premium properties in Gangnam are seeing sharp price cuts. A 202-square-meter unit at Apgujeong Shinhyundai Apartment was listed Tuesday at 9.17 billion won—1.83 billion won below a lower-floor unit that sold for 11 billion won last month. In Daechi-dong, a 76-square-meter unit at Eunma Apartment traded at 3.64 billion won last month, down 160 million won from its November record of 3.8 billion won. Current asking prices have dropped further to 3.39 billion won.

Eighteen of Seoul's 25 districts saw either smaller gains or larger declines. Gangdong and Dongjak, adjacent to the Gangnam belt, rose just 0.02% and 0.01% respectively, approaching negative territory. Only Jung, Jungnang, Dobong, and Yangcheon districts posted larger gains.

Listings across Seoul jumped 25.7% over the past month to 74,190 units, according to real estate data platform Asil. The Han River belt saw the sharpest increases: Seongdong rose 53.1%, Dongjak 46.0%, and Gangdong 44.8%.

Market watchers attribute the surge in listings to an approaching deadline for heavier capital gains taxes on multiple-property owners.

"Prices are likely to fall further as the tax deadline approaches," said Kwon Dae-jung, chair professor of economics and real estate at Hansung University. "Considering land transaction permits take about two weeks, discounted properties will flood the market through next month."

Nam Hyuk-woo, a researcher at Woori Bank's Real Estate Research Institute, said reconstruction projects and high-end Gangnam apartments are seeing the largest price adjustments. "The trend after multiple-property owners clear their holdings next month will be crucial for the market's direction," he added.