Following real estate regulations, apartment prices in Seoul's most premium districts have turned downward, while prices in lower-cost outer districts—considered working-class residential areas—are accelerating their gains.
According to the Korea Real Estate Board's weekly apartment price trends for the second week of March (as of the 9th) released on the 12th, Seoul apartment sale prices rose just 0.08% from the previous week. This marks the sixth consecutive week of slowing gains since the first week of February (as of the 2nd), and the lowest figure in 26 weeks since the first week of September last year (0.08%). The trend aligns with developments following President Lee Jae-myung's January 23rd announcement on social media officially confirming the end of the capital gains tax surcharge deferral.
The problem lies in the temperature gap. Apartment prices in the southeastern districts (Gangnam, Seocho, Songpa, and Gangdong) and Yongsan-gu turned downward this week. Distressed sales from multi-home owners concerned about tax burdens are flooding the market, with transactions closing hundreds of millions of won below peak prices.
Cheongdam Le'el in Cheongdam-dong, Gangnam-gu, with 84㎡ of exclusive space, traded at 5.4 billion won on February 26—1.38 billion won below its peak price of 6.78 billion won. Dongbu Centreville in Daechi-dong with 161㎡ of exclusive space changed hands at 6.2 billion won in the same month, down 600 million won from its peak. Asking prices for Helio City in Garak-dong, Songpa-gu, with 84㎡ of exclusive space, have dropped to 2.7 billion won—a decline of 450 million won in three weeks from the 3.15 billion won transaction on the 19th of last month.
In contrast to these premium districts where asking prices are falling by hundreds of millions of won, outer districts are showing the opposite trend. Jung-gu (0.27%) and Seongbuk-gu (0.27%) jointly recorded the highest gains in Seoul this week. The "Nodokang" areas (Nowon, Dobong, and Gangbuk) and "Geumgwangu" areas (Geumcheon, Gwanak, and Guro) all expanded their gains from the previous week. Notable examples include Nowon-gu (0.12%→0.14%), Gwanak-gu (0.09%→0.15%), and Guro-gu (0.09%→0.17%). Seodaemun-gu (0.17%→0.26%), Eunpyeong-gu (0.17%→0.22%), Gangseo-gu (0.23%→0.25%), and Dongdaemun-gu (0.20%→0.22%) also widened their gains.
Experts analyze that the combined effect of high-end apartment corrections and financial regulations is driving demand toward relatively more affordable areas. Nam Hyuk-woo, a real estate researcher at Woori Bank, explained: "The market is shifting from a polarized market led by upgrade demand to a 'price-matching market' centered on non-homeowners. Lower and mid-priced areas are attracting buyers due to both price appreciation potential and factors such as shortages of jeonse and monthly rental properties."
The government maintains that market stabilization is underway. Minister of Land, Infrastructure and Transport Kim Yun-deok appeared on CBS Radio that day, stating: "Listings have increased and the pace of home price increases has significantly narrowed. Continuing the trend of stabilizing real estate prices downward fundamentally benefits non-homeowners."
The government has also announced a follow-up policy package encompassing taxation, finance, and housing supply depending on market conditions. However, concerns are emerging that if end-users continue to be pushed to outer areas to purchase homes, even working-class residential districts could face increased price burdens.