High-end Seoul districts see second week of declines

Apartment prices in Seoul’s three Gangnam districts, Gangnam, Seocho and Songpa, as well as Yongsan District, declined for a second consecutive week as the expiration of a temporary tax relief measure for multiple-home owners approaches on May 9. With about two months remaining before the suspension of heavy capital gains taxes ends, listings from multiple-home owners have been increasing. Analysts say the downward pressure could persist through April.

According to the weekly apartment price trend report released Wednesday by the Korea Real Estate Board, based on a survey conducted Sunday, apartment prices across Seoul rose 0.09 percent from the previous week. The increase was slightly slower than the 0.11 percent gain recorded a week earlier. At the district level, however, several high-end areas posted declines.

Songpa District recorded the steepest drop among Seoul’s 25 districts, falling 0.09 percent after edging down 0.03 percent the previous week.

Price declines also widened in other upscale areas. Gangnam District slipped 0.07 percent after a 0.06 percent fall the week before, while Yongsan District dropped 0.05 percent following a 0.01 percent decline. Seocho District also posted a decrease of 0.01 percent, compared with a 0.02 percent decline the previous week.

Jeong Jae-hoon, a professor in the Department of Urban Planning and Real Estate at Dankook University, said the correction could continue for several weeks. “Until early April, listings from multiple-home owners seeking to avoid heavy capital gains taxes are likely to keep increasing, making it highly possible that this adjustment trend will persist,” he said.


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