Seoul's housing prices have resumed their upward trend following the end of the capital gains tax exemption. Even Gangnam has turned positive, while areas like Seongbuk and Jongno have recorded their highest growth rates since statistics began, reflecting a significant increase in mid-priced apartment areas.
According to the Korea Real Estate Agency's April national housing price trend survey released on May 15, the comprehensive housing price index in Seoul rose by 0.55%.
The increase was driven by strong demand in mid-priced areas. By district, Gwangjin saw the highest growth rate at 0.96%, primarily in the Junggok and Guui-dong areas. Seongbuk followed with a 0.92% increase, focusing on small to medium-sized apartments in Seongbuk and Gileum-dong, while Nowon recorded a 0.79% rise, mainly in the large complexes of Wolgye and Junggye-dong. Seodaemun (0.78%) and Dongdaemun (0.77%) also saw increases in areas like Bukgajwa and Hong-eun-dong, and Dapsimni and Huigyeong-dong, respectively.
Gangseo (0.87%) showed growth in redevelopment areas of Gayang and Yeomchang-dong, Yeongdeungpo (0.83%) in the station areas of Singil and Yangpyeong-dong, Gwanak (0.74%) in Sinlim and Bongcheon-dong, and Guro (0.72%) in Gaebong and Gocheok-dong. However, Gangnam reported a decline of -0.22% in April, particularly in high-priced areas like Apgujeong and Gaepo-dong.
However, the mood shifted dramatically this month following the end of the capital gains tax exemption. According to the Korea Real Estate Agency, the apartment sale prices in Gangnam rose by 0.19% in the second week of May, marking a turnaround after 12 weeks of decline. Major areas like Songpa (0.35%), Seocho (0.17%), and Yongsan (0.21%) also increased their growth rates.
The rise in prices is also accelerating in the outer areas where mid-priced apartments are concentrated. In the second week of May, Seongbuk (0.54%) and Jongno (0.36%) recorded their highest growth rates since statistics began. Areas with strong demand, such as Seodaemun, Gangseo, Dongdaemun, and Nowon, continued to see upward trends, contributing to the overall increase in the market.
Consequently, Seoul's apartment sale prices rose by 0.28% in the same week, significantly up from 0.15% the previous week. This marks the largest increase since the fourth week of January this year.
Analysts suggest that the surge in sales aimed at tax savings, which occurred before the end of the capital gains tax exemption, has depleted available listings, leading to a simultaneous decrease in inventory and an increase in prices. The Ministry of Land, Infrastructure and Transport is encouraging listings by expanding the exemption of occupancy requirements in designated land transaction areas from certain multi-homeowners to all homes with tenants.
Yoon Soo-min, a real estate expert at NH Nonghyup Financial Group, noted, "Price impacts vary by region. Areas with many mid-priced apartments have steady demand, making price stabilization difficult, while high-priced apartments have limited demand, suggesting a more stable trend may continue."
Nam Hyuk-woo from Woori Bank's real estate research institute stated, "The upward trend has resumed, particularly in so-called 'value-for-money areas' where price burdens are lighter and living conditions are favorable. Areas like Seodaemun, Dongdaemun, and Gangseo have a small gap between transaction prices and listing prices, resulting in lower buyer resistance, and there seems to be an influx of demand from lower-tier to higher-tier areas."
* This article has been translated by AI.
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