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Apartment prices in high-end areas of southern Seoul, known as Gangnam, have continued their downward trend following the announcement of a tax reform proposal that increases tax burdens for single-home owners who do not reside in their properties and owners of high-value homes.
According to the weekly apartment price trends for the third week of August (as of August 17) released by the Korea Real Estate Board today (the 20th), apartment sales prices in Seoul rose by an average of 0.22% compared to the previous week.
The growth rate remained similar to the previous week (0.21%).
Seocho-gu (-0.04% to -0.09%) and Gangnam-gu (-0.02% to -0.05%), which would face heavier property tax burdens if the tax reform is implemented, saw their downward drops widen. Meanwhile, Songpa-gu (0.12% to 0.10%), which is grouped with these districts into the "Gangnam 3 districts," experienced a slowdown in its upward trend.
Seocho-gu and Gangnam-gu declined for the second consecutive week, following the previous week.
On the other hand, mid-to-lower tier districts such as Seongbuk-gu (0.45%), Jungnang-gu (0.44%), Seodaemun-gu (0.44%), Jung-gu (0.41%), and Gangbuk-gu (0.41%) maintained steady upward trends.
The Korea Real Estate Board stated, "Amid a wait-and-see atmosphere among market participants, localized downward transactions occurred, but overall prices in Seoul rose as upward contracts were signed mainly centered around station areas and large complexes with solid demand."
In Gyeonggi Province (0.15%), strong gains were led by Jungwon-gu in Seongnam (0.50%), Gwonseon-gu in Suwon (0.47%), and Gwangmyeong (0.47%).
Incheon rose by 0.01%, and the metropolitan area as a whole increased by 0.15%.
While non-metropolitan areas (0.00%) remained flat overall—with the four major metropolitan cities, Sejong, and seven provinces remaining flat—only South Jeolla and Gwangju (0.03%) saw an increase.
The nationwide average sales price rose by 0.08%.
Nationwide apartment jeonse (lump-sum lease) prices rose by 0.10% compared to the previous week.
In Seoul (0.19%), mixed trends appeared across regions as price-adjusted transactions were concluded, while prices rose mainly around station areas and large complexes.
The rate of increase shrank by 0.01 percentage points compared to the previous week.
Seocho-gu (-0.08%) turned downward for the first time in 49 weeks since shifting to an upward trend in the second week of September last year, and Gangnam-gu (-0.03%), which shifted downward the previous week, continued its weak trend for the second consecutive week.
Mid-to-lower tier districts such as Seongbuk-gu (0.37%), Gangbuk-gu (0.37%), Dobong-gu (0.36%), Nowon-gu (0.35%), Seodaemun-gu (0.34%), and Geumcheon-gu (0.33%) continued a steady upward trend in jeonse prices alongside sales prices.
In Gyeonggi Province (0.14% to 0.17%), the upward trend expanded, driven by increases in Dongtan-gu in Hwaseong (0.51%), Giheung-gu in Yongin (0.48%), Hanam (0.40%), and Gwangmyeong (0.34%).
In non-metropolitan areas (0.03%), the four major metropolitan cities (0.04%), Sejong (0.02%), and seven provinces (0.03%) rose, while South Jeolla and Gwangju (-0.01%) declined.
(Photo: Yonhap News)
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