Apartment prices drop by 700 million won in Songpa and 200 million won in Seongdong... Relaxed buyers say, "Let them fall further"

[The Financial News] With the temporary suspension of heavy capital gains tax on multiple-home owners nearing its end, the apartment market in Seoul has entered a wait-and-see phase. Sales listings are increasing rapidly, and in some complexes, deals are closing at prices cut by hundreds of millions of won. However, many regular listings are still holding firm, leading to a tug-of-war over prices between sellers and buyers.
■ Prices down by hundreds of millions of won from peak... Selective adjustments
According to real estate platform Asil on the 2nd, as of February 28, the number of apartment sale listings in Seoul had risen 26.4% from a month earlier. Seongdong-gu posted the sharpest increase at 51.4%, followed by Dongjak District at 48.4%, Mapo District at 41.6%, and Songpa District at 38.9%. Seocho District and Gangnam District also saw listings climb 26.6% and 17.5%, respectively, showing an overall expansion of supply in prime areas, including the Gangnam 3 Districts. In particular, listings in the Apgujeong area of Gangnam District totaled 1,385 as of February 28. Some ultra-high-end apartments there are being offered as urgent sales, with asking prices cut from 11 billion won to the low-9-billion-won range.
As listings increase, price momentum in top-tier areas is also weakening. According to weekly apartment price trends for the fourth week of February (as of the 23rd) from the Korea Real Estate Board (KREB), Gangnam District and Seocho District turned downward for the first time in 100 weeks since the second week of March 2024. Songpa District also shifted to a decline for the first time in 47 weeks since the fourth week of March 2025. Yongsan District likewise returned to a downward trend for the first time in 101 weeks since the first week of March 2024.
Actual transaction data show cases where prices have fallen by hundreds of millions of won from their peaks. An 84-square-meter unit in Helio City in Songpa District recently sold for about 700 million won below its record-high price. At Park Rio Apartment Complex and Richenze Apartment Complex, contracts have been signed at prices 100 million to 300 million won lower than previous peaks. Complexes in Oksu-dong and Haengdang-dong in Seongdong-gu have also seen actual transaction prices 100 million to 200 million won below their highs. However, as deals are occurring selectively, mainly for urgent sales, many analysts say it is still too early to conclude that an overall downward price trend has taken hold.
Market participants view the transaction flow in March as a key variable that will determine the direction ahead. The temporary suspension of heavy capital gains tax on multiple-home owners is scheduled to end on May 9, but in land transaction permit zones, it takes two to three weeks to complete the contract and approval process. Taking this into account, the effective deadline for signing contracts could move up to late March or early April. As the deadline approaches, there is growing talk that some multi-home owners may further cut prices on properties they put up for sale.
■ Hopes for a price rebound after urgent sales are absorbed
Despite the increase in listings, overall selling sentiment among homeowners has not collapsed. In Jamsil’s Helio City in Songpa District, 84-square-meter units are currently listed in the 2.7–2.9 billion won range, while Park Rio Apartment Complex units are mostly offered between 2.9 billion and 3.2 billion won. A real estate agent who brokers units in these complexes said, "There are inquiries for properties with lower asking prices, but once the price goes over 3 billion won, negotiations become difficult," adding, "From the homeowner’s perspective, even a small amount of buyer interest makes them reluctant to adjust prices easily."
In Seongdong-gu as well, transactions are centered on urgent sales. In Oksu-dong and Haengdang-dong, 84-square-meter units are changing hands at prices 100 million to 200 million won below their peaks, but regular listings are still maintaining high asking prices. An employee at a real estate office in Oksu-dong explained, "Unlike urgent sales put up by multi-home owners, regular listings are not being discounted easily by homeowners," and added, "Sellers are timing their moves while calculating their tax burden, and buyers are waiting in hopes of further price cuts."
Mapo District has also seen its apartment sale listings jump 41.6%. Around Gongdeok-dong and Ahyeon-dong, some complexes are seeing listings with reduced asking prices, but overall, homeowners are not yet actively lowering prices.
Some observers predict that once the tax break ends, some listings will be withdrawn and prices could rebound. A real estate expert noted, "Even if the burden from heavy capital gains tax or property holding tax increases, sellers may hold out if they believe their capital gains are large enough," and pointed out, "Tax policy is a short-term adjustment factor, but it is unlikely to significantly weaken the underlying demand base in prime areas."
en1302@fnnews.com Jang In-seo Reporter