Following the government's August 3 tax revision proposal, nearly 8 out of 10 apartments sold in Seoul were priced at KRW 1.5 billion or below.

In particular, the proportion of transactions priced at KRW 600 million or below—eligible for low-interest policy loans such as the first-time homebuyer fund—has increased significantly.

According to apartment transaction data reported to the Ministry of Land, Infrastructure and Transport's real transaction price system, transactions for Seoul apartments priced at KRW 1.5 billion or below accounted for approximately 79% of contracts signed since August, when the August 3 tax revision was announced (excluding canceled contracts and purchases by public institutions).

The proportion of transactions priced at KRW 1.5 billion or below averaged 73.3% during the 10 months prior to the October 15 measures last year (December 2024 to September 2025), and rose to 76.8% over the 10 months leading up to July of this year (October 2025 to July of this year).

As the mortgage loan limit was reduced to a maximum of KRW 600 million for homes valued at KRW 1.5 billion or less, KRW 400 million for those exceeding KRW 1.5 billion up to KRW 2.5 billion, and KRW 200 million for those exceeding KRW 2.5 billion, buying demand concentrated on properties priced at KRW 1.5 billion or below, which allow for relatively larger loans.

Following the August 3 tax revision, which focused on tax increases for ultra-high-priced homes, quick-sale listings priced below market value have increased in the Gangnam area and prices have fallen, but buying demand for mid- to low-priced apartments remains steady.

This is largely because larger loans are available relative to the purchase price, and a shortage of low-priced jeonse (lump-sum deposit lease) and monthly rent listings in areas such as Gangbuk has driven rental demand to shift toward buying demand.

In particular, transactions priced at KRW 600 million or below—which are eligible for government policy loans like the first-time homebuyer fund—accounted for 25% of the total, representing 4 out of 10 transactions.

Compared to 17.0% before the October 15 measures and 20.5% after the October 15 measures through July of this year, the surge in the proportion following the tax revision announcement is notably large.

However, even within the same category of KRW 1.5 billion or below, differences existed depending on the price bracket.

While transactions priced above KRW 600 million and up to KRW 900 million showed an upward trend—rising from 23.2% before the October 15 measures to 25.9% after the October 15 measures, and further to 27.6% after August of this year—transactions priced above KRW 900 million and up to KRW 1.5 billion continued to decline, dropping from 33.1% around the time of the October 15 measures to 30.4%, and down to 26.3% after August of this year.

As a result, only transactions for low-priced apartments of KRW 900 million or less are increasing, while the proportion of transactions for the rest is on the decline.

The share of transactions for apartments exceeding KRW 1.5 billion up to KRW 2.5 billion—eligible for a loan of up to KRW 400 million—dropped from 18.4% around the October 15 measures last year to 16.0%, and contracted further to 15.3% after August.

The share of transactions for high-priced apartments exceeding KRW 2.5 billion, which were also targets of this tax revision, decreased to 8.3%, 7.2%, and 5.8%, respectively.

Although quick-sale listings priced KRW 1 billion to KRW 2 billion or more below previous peak prices are increasing, primarily centered around ultra-high-priced complexes in the Gangnam area, buyers are still largely adopting a wait-and-see attitude due to uncertainties surrounding the tax revision and the burden of holding taxes.

The decline in trading volume is also affecting prices.

According to the Korea Real Estate Board, Gangnam and Seocho districts have seen declines for eight consecutive weeks following the announcement of the tax revision, whereas non-Gangnam areas, including Gangbuk, continue to show upward trends.

Experts believe that the decoupling phenomenon between the Gangnam and Gangbuk markets, as well as between the high-priced and mid- to low-priced markets, will likely persist for the time being.

This is because the jeonse and monthly rent difficulties in the mid- to low-priced apartment sector persist, and Gangnam areas are likely to maintain a wait-and-see stance ahead of the National Assembly's legislative process on the tax revision.

However, some observers note that the gap may gradually narrow as price growth momentum slows down due to fatigue over recent price hikes in areas like Nowon, Dobong, Gangbuk, Seongbuk, and Jungnang districts, which had been leading price increases, and as ultra-high-priced apartments in the Gangnam area see quick-sale listings gradually sell off starting with complexes that experienced sharp price drops.

(Photo: Yonhap News)