Following the government's unveiling of its tax reform proposals on the 3rd, apartment prices in Seoul's Gangnam area, which are expected to face a sharp surge in tax burdens, have seen their upward momentum slow significantly.

This trend is interpreted as the result of dampened buyer sentiment and trading activity as heavier taxes on ultra-luxury apartments are anticipated.

According to the Korea Real Estate Board on the 6th, apartment prices in Seoul rose 0.16% this week, slightly expanding from the previous week's 0.15% increase.

However, the southeastern region, which includes the three Gangnam districts and Gangdong-gu, rose 0.09%, showing a smaller increase compared to the previous week's 0.13%.

Apartment prices in the southeastern region have seen their growth slow for four consecutive weeks since the first week of July.

Gangnam-gu recorded 0.01% this week, down from 0.07% last week, nearing a flat market, while Seocho-gu decreased from 0.05% last week to 0.02% this week.

Songpa-gu also saw its growth rate drop from 0.20% to 0.15%.

As the government's tax reform proposals announced on the 3rd raise the comprehensive real estate holding tax on ultra-luxury homes and curtail long-term holding special deduction benefits for capital gains tax, the tax burden on high-priced homes in the Gangnam area is expected to increase substantially moving forward.

Although this week's housing market trend survey was finalized before the tax reform package was made public, meaning the announced measures were not fully reflected in prices, expectations of increased tax burdens in the Gangnam area had already dampened buyer sentiment and signaled potential price declines.

In contrast, apartment price gains widened slightly this week in the Han River belt—including Mapo, Yongsan, and Seongdong districts, collectively known as "Mayongseong"—as well as northern Seoul.

Mapo-gu rose 0.39%, expanding its growth from last week's 0.33%, while Seongdong-gu increased from 0.14% to 0.16%, and Yongsan-gu grew from 0.13% to 0.18%.

Apartment prices in northern Seoul also maintained a strong upward trend, including Jung-gu (0.54%), Jungnang-gu (0.52%), Seongbuk-gu (0.49%), Nowon-gu (0.46%), and Seodaemun-gu (0.43%).

Gyeonggi Province rose 0.16% and Incheon rose 0.03%, both expanding their growth rates by 0.01 percentage points from the previous week, driving the overall metropolitan area up by 0.17% compared to last week's 0.16%.

Jeonse (lump-sum housing lease) prices for Seoul apartments rose 0.25%, remaining flat compared to the previous week, while Gyeonggi Province increased from 0.14% to 0.18% and Incheon rose from 0.09% to 0.11%.

Jeonse prices in Seocho-gu shifted to a flat trend this week, moving from 0.08% last week.

This marks the first time in 11 months, since the first week of September last year, that Seocho-gu's jeonse prices have stopped rising.

Jeonse prices have stabilized following the start of move-ins this month for the 2,091-household Raemian Trinitone complex.

Jeonse price growth in Gangnam-gu also slowed sharply from 0.09% last week to 0.01% this week.

Meanwhile, northern Seoul districts such as Seongbuk-gu (0.49%), Nowon-gu (0.42%), and Gangbuk-gu (0.33%), which are drawing demand for mid-to-low-priced jeonse properties, continued to show strong jeonse price increases this week.

(Photo: Yonhap News)