President Lee Jae-myung has shown a strong commitment to 'normalizing the real estate market,' which is manifested in rising listings of apartments for urgent sale as the deadline for the end of the exemption from heavy taxation on multiple property sales approaches. In the Gangnam area of Seoul, including the districts of Seocho, Gangnam, and Songpa, as well as Yongsan, apartment prices have seen a decline for the first time in a year or two. This shift is largely attributed to an environment where capital previously invested in real estate is likely to move to the stock market, which is currently experiencing an unprecedented upward rally, indicating the potential for a more substantial downward stabilization trend in property values.

According to the latest weekly apartment price trend report from the Korea Real Estate Agency, as of February 23, prices in Gangnam districts, including Gangnam (decrease of 0.06%), Songpa (decrease of 0.03%), and Seocho (decrease of 0.02%), alongside Yongsan (decrease of 0.01%), have all turned to decline. This reflects the first decrease in apartment prices in these regions since early 2022 and comes after a period of steady rises in the market. Particularly, in Songpa, prices had continually increased since March of the previous year but have now reversed after 11 months.

The decline in apartment prices in the Gangnam area is directly linked to the impending end of the exemption on heavy taxation on multiple home sales set for May 9, which has prompted homeowners with multiple properties to lower their asking prices in haste to sell. Recent market data shows that the number of apartment listings in Seoul has grown by 20.6% since the announcement of the lack of extension for the multiple home sales tax exemption, indicating a shift in the supply-demand dynamic in the real estate market as high-value single homeowners consider selling to capitalize on profits ahead of potential tax reforms discussed after the upcoming local elections.