From 2.3 Billion Slump to 3.1 Billion Record: Capital Gains Tax Listings on a Roller Coaster

An 84m2 unit in Helio City in Songpa District, Seoul, has traded again in the 3.1 billion won range, setting a new record-high price. This comes just a week after a deal in the 2.3 billion won range, which drew attention as a sharp price drop and was cited as evidence of falling home prices in the complex. Market participants are now split over how to interpret the latest transaction, its nature, and the time lag in reporting.
According to the Actual Transaction Price Disclosure System of the Ministry of Land, Infrastructure and Transport on the 11th, an 84m2 unit in Helio City was sold for 3.15 billion won on February 19, marking a new record for this size.
The previous record for the same size was 3.14 billion won, recorded on January 2. However, on February 12, when many listings from multi-home owners were hitting the market amid the government’s plan to let the heavier capital gains tax on multi-home owners expire and its stance of strengthening the Holding Tax, a unit traded for 2.382 billion won. The 758 million won drop turned it into a high-profile example of falling home prices.
On the ground, agents almost unanimously said that the 2.382 billion won deal was likely a transaction between related parties, such as a gift. A licensed real estate agent in Garak-dong, identified as Mr. B, said, "There has never been a listing at a similar price level," adding, "Everyone around here understood that deal as a gift transaction." In fact, at the time, the lowest asking price for that size unit was around 2.7 billion won.
Opinions are now divided over the latest record-high deal. Current asking prices for 84m2 units in Helio City are mostly in the 2.8–2.9 billion won range, but given the size of the complex, listings can go up to 3.2 billion won depending on factors such as distance to the subway station, floor level, and layout type. A nearby agent, Mr. C, noted, "If it is in a building close to the station, that price is fully achievable," and explained, "This particular unit is on a high floor, and its layout is quite popular among end-users, so it is not an unreasonable deal."
Some, however, suggest that the gap may be due to a time lag in the land transaction permission system process. They believe the deal might have been concluded before the government officially mentioned tighter rules on multi-home owners, but was only registered later. An agent inside the complex, Mr. D, said, "It is highly likely that the actual transaction took place between last December and January, when asking prices were still higher," adding, "After going through the necessary procedures, it became February by the time it was reported and recorded as a new high."
Meanwhile, Helio City is expected to benefit from the Wirye–Sinsa Line urban railroad construction business, which passed its Preliminary Feasibility Study the previous day. Asking prices are projected to move up by around 200–300 million won. Recently, most listings below 2.8 billion won at Helio City have been taken up, and buyers looking for urgent sales are trying to find units in the 2.7 billion won range, leading to a slight advantage for sellers. Agent Mr. E said, "Many homeowners still do not know about the Preliminary Feasibility Study approval, but those who do are contacting us to consider raising their asking prices or pulling their listings," and added, "Buyer inquiries also seem to have increased a bit."
Experts advise that the market should be watched at least until May 9, when the heavier capital gains tax on multi-home owners is set to expire. Ko Jun-seok, a professor at the Sangnam Institute of Management, Yonsei University, said, "I still see room for further adjustment in areas such as Gangnam," and predicted, "The market will likely undergo corrections until the second week of April."
An industry official commented, "Recently, buyer inquiries have increased significantly, while new listings have dried up, so prices are indeed starting to plateau," but cautioned, "However, major complexes that influence the broader market are still in the middle of a correction, so it is too early to say that conditions have clearly improved."
act@fnnews.com Choi Ah-young Reporter