The real estate market in Seoul's Gangnam area has seen a significant shift with the demand-supply balance reaching an equal stage as housing prices have begun to decline. President Lee Jae-myung's continuous emphasis on 'normalizing the real estate market' has coincided with a rise in listings from multi-homeowners looking to avoid capital gains tax, combined with a cautious stance from buyers who are observing the market before making purchases. According to Korea Real Estate Agency data, the demand-supply index for the southeastern region of Seoul, which includes Seocho, Gangnam, Songpa, and Gangdong districts, saw a drop from 104.13 in the third week of January to 99.95 in the fourth week of February, marking the lowest level in over a year.

This index reflects the ratio of buyers to sellers, where a score below 100 indicates more sellers than buyers in the market. The recent closeness of the index to 100 suggests a shift where buyers are now seeing an upper hand amidst a flood of housing listings, which in turn has led to price corrections as buyers wait to see how the market unfolds. Notably, with the new capital gains tax commencement on multi-property owners in May and predicted reforms on property taxes following local elections in June, sellers, especially high-value single-home owners, are feeling pressure to sell rather than hold onto their properties.

As seen from the real estate big data company Asil, the number of apartments for sale in Seoul has surged to 72,049 as of February 28, marking a 26.1% increase from a month prior. Among these listings, a staggering 31.9% or 22,956 units are reported from the Gangnam 3 areas, indicating a trend where high-value apartments are being aggressively listed for sale. The fourth week of February has shown declining apartment prices across Gangnam 3 and Yongsan districts, with properties being listed at reduced prices, reflecting the changing dynamics of the real estate market in this affluent area of Seoul.