Seoul Apartment Prices Rise Amid Tax Reform Impact on High-End Districts

Seoul's overall apartment prices saw an accelerated rise in the third week of August, according to the Korea Real Estate Board's weekly price trend report. This increase was bolstered by gains in areas where apartments are priced below 1.5 billion won and in certain neighborhoods along the Han River.

However, this contrasts with the property market in Seoul's affluent Gangnam and Seocho districts. Apartment prices in these areas have experienced a decline for the second consecutive week since the government announced its tax reform package. The reforms are expected to increase tax burdens, particularly property taxes, leading some homeowners to list their properties at reduced prices.

Data shows a 6.4% increase in apartment listings in Seoul compared to the day before the tax reform announcement. Real estate agents report that elderly homeowners are significantly lowering asking prices, but potential buyers are hesitant, anticipating further price drops after the tax reforms are finalized. Despite the increase in available properties and some urgent sales, overall transaction volume remains subdued.