As the deadline for the expiration of the capital gains tax exemption approaches, there has been a significant increase in urgent property sales from multi-homeowners in the Gangnam Districts (Gangnam, Seocho, and Songpa) and Yongsan District of Seoul, resulting in a consecutive drop in apartment prices for the second week. According to the Korea Real Estate Agency's weekly apartment price trends, the prices in these sought-after districts continue to decline, highlighting the growing pressure on homeowners to sell before tax liabilities increase. Last week marked a notable change where the apartment prices turned negative for the first time in two years in these areas, indicating a shift in the market dynamics.

This decline is influenced by multi-homeowners seeking to finalize contracts before May 9 to avoid heightened capital gains taxes, as well as concerns from high-value single homeowners who are looking to cash in on their properties amid the anticipated reform in property taxes. The data shows a range of declines across different districts, notably with Songpa experiencing the most significant drop of 0.09%, followed by Gangnam at -0.07% and other areas also seeing slight reductions. Despite these reductions in certain districts, there are still pockets of price increases in some redevelopment projects and areas with favorable living conditions, suggesting a mixed sentiment in the overall real estate market of Seoul.

While the average selling price of apartments in Seoul has increased slightly by 0.09% compared to the previous week, the growth rate has diminished for the fifth consecutive week, indicating a trend of moderation in price increases. This decline in the Gangnam area and Yongsan, accompanied by the fluctuating conditions in the broader Seoul market, signals potential change as buyers and sellers navigate the upcoming tax changes, highlighting the importance of keeping an eye on upcoming regulatory adjustments that could further impact the property market dynamics in the region.