Seoul's apartment market is experiencing a notable slowdown in price growth as the government prepares to reinstate higher capital gains taxes for multiple homeowners starting May. Recent data from the Korea Real Estate Agency shows that the increase in apartment prices for the third week of February registered at 0.15%, down from 0.31% in late January, indicating a consistent downward trend.

Market analysts attribute this slowdown to the government's decision to terminate the tax deferment for multi-homeowners, coupled with the allowance for these owners to sell properties that include leased tenants. Many homeowners are attempting to lower their asking prices in order to mitigate tax burdens, leading to a rise in properties listed for sale. However, prospective buyers are adopting a wait-and-see approach, anticipating further price declines, which is hindering transaction volumes across the market.

Particularly in areas traditionally known for high property values, such as the Gangnam district, price growth has significantly waned. Data reveals that in the Gangnam area, the price increase fell from 0.02% to 0.01%, while other regions like Mapo and Yongsan also experienced similar slowdowns. Despite these trends, some suburban areas in Seoul have maintained strong growth rates, with districts such as Gwanak and Seongbuk showing robust increases, albeit at gradually decreasing rates.