[Anchor]

Recently, major reconstruction apartment complexes in Gangnam, Seoul, have seen a series of transactions where homes were sold for billions of won lower than their peak prices. Owners appear to be rushing to sell as it becomes virtually impossible to sell once the reconstruction projects move to the next stage.

Reporter Jeon Hyeong-u has the story.

[Reporter]

Shinhundai Apartment in Apgujeong-dong, Gangnam-gu, Seoul.

The largest unit, with a floor area of 183 square meters, was traded for 9.3 billion won earlier this month.

This is 3.5 billion won lower than the peak price 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 lower by 2.45 billion won.

Transactions with price cuts amounting to billions of won are continuing in prominent Gangnam reconstruction complexes. Analysts attribute this to regulations that restrict selling homes once reconstruction gets into full swing.

This complex plans to hold a union general meeting this week and apply for project implementation plan approval early next month.

By law, owners in reconstruction complexes located in speculation-overheated districts are virtually barred from selling their homes, with very few exceptions, after applying for project implementation plan approval.

[Park In-gu / Apgujeong Real Estate Agent: Therefore, it seems that some of these properties are coming out as urgent sales to sell them in advance before the project implementation approval.]

In addition, the government tax reform proposal has simultaneously impacted the market by increasing the comprehensive real estate holding tax burden on ultra-high-priced homes and raising capital gains taxes when selling properties.

[Apgujeong Apartment Union Member: Since the average age is over 60, cash flow is low, but the comprehensive real estate holding tax seems likely to increase by about three to four times.]

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

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

On the other hand, apartment prices across Seoul as a whole rose by 0.13%, contrasting with the upward trend in non-Gangnam areas such as Seongbuk and Seodaemun.

(Video by Kim Hak-mo | Video Editing by Jung Yong-hwa | Design by Park Cheon-woong)