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 significant increases in mid-priced apartment clusters.
According to the Korea Real Estate Agency's April national housing price trend survey released on May 15, the comprehensive housing price index for Seoul rose by 0.55%.
The overall demand in mid-priced areas has driven this increase. Among the districts, Gwangjin recorded the highest growth rate at 0.96%, primarily in major complexes in Junggok and Guui-dong. Seongbuk followed with a 0.92% increase, focusing on smaller units in Seongbuk and Gileum-dong, while Nowon saw a 0.79% rise centered around large complexes in Wolgye and Junggye-dong. Seodaemun and Dongdaemun also reported increases of 0.78% and 0.77%, respectively, mainly in Bukgajwa-Hongun-dong and Dapsimni-Hwigyeong-dong.
Gangseo (0.87%) benefited from redevelopment projects in Gayang and Yeomchang-dong, while Yeongdeungpo (0.83%) saw growth in the station areas of Sin-gil and Yangpyeong-dong. Gwanak (0.74%) and Guro (0.72%) also experienced increases, particularly in Sinlim and Bongcheon-dong, and Gaebong and Gocheok-dong, respectively. However, Gangnam recorded 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, in the second week of May, apartment prices in Gangnam rose by 0.19%, marking a turnaround after 12 weeks of decline. Major areas such as Songpa (0.35%), Seocho (0.17%), and Yongsan (0.21%) also increased their growth rates.
The upward trend in the outer regions, where mid-priced apartments are concentrated, is also accelerating. In the second week of May, Seongbuk (0.54%) and Jongno (0.36%) recorded their highest growth rates since statistics began. Areas with strong real demand, such as Seodaemun, Gangseo, Dongdaemun, and Nowon, continued to see upward momentum, contributing to the overall increase in the market.
Consequently, Seoul's apartment prices rose by 0.28% in the same week, significantly up from the previous week's 0.15%. This marks the largest increase since the fourth week of January this year.
Analysts suggest that the surge in urgent sales aimed at tax savings, which occurred after the announcement of the end of the capital gains tax exemption, has led to a simultaneous decrease in listings and an increase in prices. The Ministry of Land, Infrastructure and Transport is encouraging listings by expanding the exemption from residency obligations 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 challenging, while high-priced apartments have limited demand, suggesting a more stable trend may continue."
Nam Hyuk-woo of Woori Bank's real estate research institute stated, "The upward trend has resumed, particularly in so-called 'value-for-money areas' that offer less price burden and good living conditions. Areas like Seodaemun, Dongdaemun, and Gangseo have a small gap between actual transaction prices and listing prices, resulting in lower buyer resistance, and there appears to be an influx of demand from lower-tier to higher-tier areas."
* This article has been translated by AI.
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