"Even After Cutting the Price by Hundreds of Millions, It Won't Sell"... Gangnam Homeowners Losing Sleep

"A 50-pyeong unit at the Shinhyundai Apartment Complex recently sold for 7.6 billion won. After hearing about that deal, an owner of a different unit type, who had insisted on getting at least 8.5 billion won, said they would accept 7.8 billion won—then changed their mind again. Their stance keeps shifting depending on how the market is moving." (Real estate agent A in Apgujeong-dong, Gangnam District)
As government regulations on owners of multiple homes continue, price gains for high-end apartments have slowed, especially in the Gangnam 3 Districts (Gangnam, Seocho, and Songpa). Market watchers are now focused on whether this price adjustment trend in prime Gangnam areas will persist.
Brokerage offices visited in Apgujeong-dong, Gangnam District, on the 13th were mostly quiet, though occasional purchase inquiries came in. These were from would-be buyers asking to be contacted if prices fell below a certain level. A nearby agent, identified as B, said, "Some quick-sale deals were closed last week. However, even when we call sellers, they are not willing to cut prices further. Some say they'd rather pull the listing than lower the price any more." With heavier capital gains taxes on multiple-home owners set to take effect on May 9, more fire-sale listings are hitting the market in the Gangnam 3 Districts, intensifying the standoff between buyers and sellers.
According to apartment supply-demand data from the Korea Real Estate Board (KREB), the sales supply-demand index for Southeastern Seoul (Seocho, Gangnam, Songpa, and Gangdong Districts) stood at 98.6 in the second week of March (as of the 9th). This is the lowest level since the first week of February last year (98.7), when buyer sentiment plunged amid loan-tightening measures in the second half of 2024 and impeachment-driven political turmoil.
A sales supply-demand index below the baseline of 100 indicates there are more people looking to sell than to buy. In fact, the number of listings in Gangnam District has been steadily rising.
Data from the Asil real estate big data platform show that, as of this day, there were 10,044 apartment listings in Gangnam District. That is an increase of 1,315 listings, or 15.1%, compared with 8,729 a month earlier. A real estate agent C in Gangnam District noted, "There are many quick-sale properties that have been discounted by more than 1 billion won from previous levels, but buyers are still expecting even lower prices. These fire-sale listings are not being absorbed smoothly."
Seocho District is seeing a similar mood. Buyers believe they can purchase at even lower prices and are waiting for rock-bottom fire sales, while sellers insist they cannot cut any further. A real estate agent D in Banpo-dong, Seocho District, said, "There are not many transactions taking place, and both sellers and buyers are just watching the market. The record-high deals you see were mostly concluded before the announcement of new regulations on multiple-home owners, so we need to watch transactions from March through early April."
As the standoff between buyers and sellers drags on and listing prices change frequently, some agencies have even started posting property information by hand. Whenever news of a deal or actual transaction prices is released, inquiries about changes to asking prices surge.
A real estate agent E in Songpa District said, "We frequently get calls from owners wanting to raise or lower their prices depending on transaction news. Even so, buyers are still largely waiting for further price drops."
act@fnnews.com Choi Ah-young Reporter