Over Half of Seoul Apartments Priced $1.1M-$1.5M Sold at Record Highs Amid Tax Concerns

In July, over half of apartments sold in the Seoul metropolitan area within the 1.5 billion to 2 billion won price bracket achieved record-high prices, according to an analysis of real estate transaction data. This marks a significant increase from the previous year, where the proportion of such sales was lower.

The trend of record-high sales is evident across a broader range of mid-to-high-priced apartments. For properties between 600 million and 900 million won, the share of record sales rose to 20.7% from 6.5% a year ago. Similarly, the 900 million to 1.2 billion won bracket saw an increase to 36.7% from 16.1%, and the 1.2 billion to 1.5 billion won range experienced the largest jump, from 23.4% to 47.0%.

Conversely, apartments priced above 2 billion won showed a declining trend in record-high sales. The 2 billion to 2.5 billion won segment dropped from 56.2% to 44.0%, and the 2.5 billion to 3 billion won segment saw a sharp decrease from 71.4% to 25.8%. For properties exceeding 3 billion won, the share of record sales fell from 70.0% to 32.5%.

Real estate platform Zigbang noted that the proportion of record sales can fluctuate significantly in the over 3 billion won category due to the smaller number of transactions. The data emerges as the government's tax reform announcement has led to an increase in apartment listings in Seoul, with over 2,000 additional properties available. A significant portion of these new listings are concentrated in the Gangnam 3 districts, indicating a potential move by owners of high-value homes sensitive to increased holding tax burdens.