Apartment Prices Fall for Fourth Straight Week in Seoul’s Gangnam and Seocho Districts

The cooling in Seoul’s apartment market is becoming clearest in the city’s wealthiest districts. Prices in Seocho and Gangnam fell for a fourth straight week after the government announced its tax reform package.

Data from the Korea Real Estate Board showed that apartment prices across Seoul rose 0.22% in the week ending Aug. 31. That marked a slowdown from the 0.29% increase recorded the previous week. Seocho’s decline widened from 0.05% to 0.23%, while Gangnam’s fall deepened from 0.11% to 0.14%.

Songpa still recorded a small increase, but its rate slowed sharply from 0.09% to 0.01%, leaving it at risk of turning negative. By contrast, prices continued to rise relatively quickly in districts including Seongbuk, Jungnang, Seodaemun and Gangbuk. Most areas, however, posted slower growth than the week before.

The Korea Real Estate Board said the market showed mixed conditions. Some transactions closed at lower prices as buyers and sellers waited, while rising contracts continued in areas with firm demand, particularly near subway stations and in large apartment complexes.

Listings are also increasing. According to the real-estate data company Asil, the number of Seoul apartment listings rose from 77,880 on Aug. 3, when the tax reforms were announced, to 86,207. Gangnam listings increased from 13,574 to 15,195 over the same period. Price growth also slowed in Hwaseong’s Dongtan district, a semiconductor-industry hub, as well as in Suwon’s Yeongtong district and Yongin’s Suji district.

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The market is showing mixed conditions, with lower-priced transactions occurring locally as market participants wait, while rising contracts are being signed mainly in areas with firm demand, such as those near transit stations and large apartment complexes.