Seoul apartment prices posted a wider gain in a week, as distressed listings were absorbed ahead of the expiration of the capital gains tax moratorium for multiple-home owners. Yongsan joined Songpa and Seocho districts in turning positive, while Gangnam remained the only one of Seoul's 25 autonomous districts to extend its decline, with last-minute distressed listings emerging mainly at redevelopment complexes. Some mid- and low-priced areas that had surged in a short period paused, but gains spread to mid-tier areas such as Gangbuk and Gangseo.
According to the weekly apartment price trend released by the Korea Real Estate Board on Wednesday for the first week of May (as of the 4th), Seoul sale prices rose 0.15% from the previous week. The gain widened by 0.01 percentage point from a week earlier. The Korea Real Estate Board said, "Seoul overall rose as areas showing a localized wait-and-see stance coexisted with areas where buying inquiries and upward transactions continued, centered on large complexes and subway-area properties."
Yongsan rose 0.07%, turning positive for the first time in four weeks. After falling 0.04% in the second week of April, Yongsan recorded declines of 0.03% in both the third and fourth weeks before swinging to positive territory this week. Seocho, which turned positive last week for the first time in 10 weeks, widened its gain to 0.04% this week. Songpa rose 0.17%, with the gain widening 0.04 percentage point from the previous week. By contrast, Gangnam's decline deepened again to 0.04%, weighed down by price adjustments at redevelopment complexes in Apgujeong and Gaepo.
Across Seoul, the uptrend held, but regional divergence was pronounced. Of the 25 autonomous districts, 15 — including Gangbuk (0.25%), Gangseo (0.30%), Seongbuk (0.27%) and Dongdaemun (0.24%) — saw their gains widen from the previous week. Gangseo rose on major complexes in Gayang and Naebalsan-dong, Seongbuk on large complexes in Gireum and Hawolgok-dong, and Dongdaemun centered on Dapsimni and Jeonnong-dong. By contrast, 10 districts including Dongjak (0.09%), Geumcheon (0.15%) and Yeongdeungpo (0.16%) saw smaller gains or remained flat.
Experts noted that asking prices are partly being reflected in transactions following the absorption of distressed listings. "Distressed transactions that began in Songpa have extended to Seocho and Gangdong, and improved buyer sentiment and slightly higher asking prices appear to be reflected in price movements," said Nam Hyuk-woo, a real estate researcher at Woori Bank. "However, Gangnam is showing a correction trend as additional distressed listings emerge, centered on redevelopment apartments." He added, "With macro variables such as the second-half tax reform bill and concerns over another rate hike still ahead, the market is likely to move within a range for the time being rather than see sharp gains or declines."
Jeonse prices are also rising at a steeper pace. Seoul jeonse prices climbed 0.23% this week, with the gain widening 0.03 percentage point from the previous week. Songpa (0.49%), Seongbuk (0.36%), Gwangjin (0.34%) and Nowon (0.32%) posted the largest increases. So far this year, Seoul jeonse prices have risen a cumulative 2.61%, more than five times the 0.45% gain over the same period last year.
Meanwhile, as distressed transactions increased ahead of the end of the capital gains tax moratorium for multiple-home owners, about 4 in 10 Seoul apartment contracts signed last month sold below the previous transaction price. According to Zigbang, 39.6% of April contracts for Seoul apartments reported as of the 6th of this month were transactions priced below the previous deal. This is the highest figure for downward transactions in 16 months since December 2024 (40.41%), and also higher than March (35.49%), which likewise saw a high volume of distressed transactions.
By district, declines in actual transaction prices were pronounced in Gangnam-area districts, which have many high-priced apartments. In Gangnam, 58.87% of April apartment contracts were downward transactions. Gangnam's downward transaction share was only 28.57% through February but jumped to 49.64% in March as distressed deals aimed at avoiding the capital gains tax surcharge increased, and approached 60% last month. Seocho's downward transactions also climbed sharply to 57.14% in April from 36.08% in March. Songpa's downward transactions reached 43.37% of April contracts, higher than March's 35.71% and exceeding upward transactions (41.77%).
"Distressed transactions for tax-saving purposes appear to have been concentrated in high-end housing clusters such as Gangnam, which had seen large price gains, ahead of the capital gains tax surcharge taking effect," said Kim Eun-sun, head of Zigbang's big data lab.
