Following a decrease in high-priced real estate transactions in Seoul's Gangnam area ahead of the end of the speculation tax grace period, significant price drops are observed in various luxury apartment sales.
As the suspension of the additional tax on multi-home owners approaches its end, Seoul's high-end apartment prices in the Gangnam area are seeing substantial drops. Instances where the transaction prices fall by several hundred million won from the previous peak are increasingly common. Experts predict that the upcoming reactivation of the zoning-target tax on May 9 will exacerbate the decline in transaction prices for apartments in affluent regions like Gangnam and along the Han River belt.
On February 26, a transaction revealed that an 84㎡ unit in Cheongdam Leel, Gangnam, was sold for 540 million won, marking a decrease of 1.38 billion won from the last peak price of 678 million won recorded in October of the previous year. Similarly, a 59㎡ unit in the Raemian Gaepo Rucheheim in the same district saw a price drop of 450 million won, closing at 270 million won compared to its previous peak of 315 million won experienced last December. Similar patterns of price drops are also evident in the Songpa district, with recent transactions showing significant devaluations on popular properties.
Prices are not the only concern, as the number of available apartments for sale in Gangnam surged this month. A big data firm reported an increase of 6.4% in listings, rising from 72,049 at the end of last month to 76,715. Notably, Gangdong, Seongdong, and Yangcheon districts topped the list for increased listings, signaling a trend of increased inventory that could pressure prices further as sellers react to the market conditions and the looming tax changes.
