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Seoul Apartment Prices Decline for First Time in 7 Months Amidst Tax Pressure
🇰🇷 South Korea /Economy & Trade

Seoul Apartment Prices Decline for First Time in 7 Months Amidst Tax Pressure

From Dong-A Ilbo · (7h ago) Korean

Translated from Korean, summarized and contextualized by DistantNews.

TLDR

  • Seoul apartment prices are projected to fall for the first time in seven months due to an increase in urgent sales before the imposition of a heavy capital gains tax on multiple homeowners.
  • The provisional real transaction price index for Seoul apartments in March showed a 0.59% decrease from the previous month, which would mark the first decline since August 2025.
  • This trend is attributed to distressed sellers offloading properties at lower prices to avoid the tax, with some high-value homeowners also selling to mitigate rising property taxes.

The recent downturn in Seoul's apartment market, as reported by Dong-A Ilbo, signals a significant shift after a seven-month period of growth. The primary driver behind this change is the impending capital gains tax on multiple homeowners, compelling many to sell their properties urgently.

This rush to sell has led to a surge in 'distressed sales,' where apartments are being listed and sold below their asking prices. This phenomenon is not only impacting the market by lowering overall transaction values but also reflects a broader anxiety among property owners about increased tax burdens. Even homeowners with single, high-value properties are reportedly joining the trend to avoid higher property taxes stemming from increased official property valuations.

While the current data suggests a clear downward trend, it's important to note that these are provisional figures. The final numbers for March could be adjusted as more transaction data is reported by the end of the month. However, the initial indication of a market correction is undeniable, driven by policy changes and the resulting strategic decisions of property owners in South Korea.

DistantNews Editorial

Originally published by Dong-A Ilbo in Korean. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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