Prices Drop by Up to 3.5 Billion Won in Apgujeong Amid Rush to Sell Early

[Anchor]

Transactions involving drops of several billion won have been reported consecutively at major reconstructed apartment complexes in Seoul.

This trend is attributed to regulations restricting home sales once reconstruction projects gain momentum. Jeon Hyeong-u reports.

[Reporter]

At Shinhundai Apartment in Apgujeong-dong, Gangnam-gu, Seoul, the largest unit with an area of 183 square meters was traded for 9.3 billion won earlier this month.

This price is 3.5 billion won lower than its peak of 12.8 billion won recorded in December of last year.

An 182-square-meter unit in Shinhundai Phase 12, which fetched over 11 billion won three months ago, was also sold at a price 2.45 billion won lower.

Such transactions with multi-billion-won drops continue in representative Gangnam reconstruction complexes, which analysts attribute to rules that block property sales once reconstruction accelerates.

The complex is scheduled to hold a association general meeting this week and apply for project implementation plan approval early next month.

Under the law, reconstruction complexes in speculation-overheated districts are practically barred from selling homes—with very few exceptions—after applying for project implementation plan approval.

[Park In-gu / Apgujeong Real Estate Agent: "So it seems that some properties have come out as urgent sales to sell them off in advance before that (project implementation approval)."]

At the same time, the government's tax code revision has also impacted the market, increasing the comprehensive real estate holding tax burden on ultra-high-priced homes as well as capital gains taxes upon sale.

[Apgujeong Apartment Association Member: "Since the average age is over 60, cash flow is low, and it looks like the comprehensive real estate holding tax will go up about three to four times."]

The tax burden appears to be halting the upward trend of housing prices in other parts of Gangnam as well.

Last week, apartment prices in Gangnam-gu fell by 0.31%, Seocho by 0.32%, and Songpa by 0.13%.

Conversely, Seoul's overall apartment prices rose by 0.13%, contrasting with the upward trend seen in non-Gangnam areas such as Seongbuk and Seodaemun.

(Video reporting: Kim Hak-mo | Video editing: Jung Yong-hwa | Design: Park Cheon-woong)
※ Please note: This article was translated by AI and may contain errors.