A Record-High 6.65 Billion Won, Then a 5.8 Billion Won Quick Sale Just Four Months Later
- Input
- 2026-09-07 16:43:07
- Updated
- 2026-09-07 16:43:07
#2. A 108-square-meter unit at Hyundai Apartments, Buildings 10, 13, and 14, in Apgujeong-dong, Gangnam-gu, Seoul, was recently listed for a quick sale at 5.8 billion won. This came four months after a unit of the same size set a record-high price of 6.65 billion won in May. The price gap during that period exceeded 800 million won.
■ From 384 transactions in January to 100 in August
The number of record-high apartment transactions in the Gangnam Three Districts—Gangnam-gu, Seocho District, and Songpa District—fell to one of its lowest levels of the year in August. The sharp decline appears to have been largely influenced by the government’s decision to strengthen the tax burden on ultra-high-priced homes in its tax reform plan announced on the 3rd of the same month. The higher tax burden on ultra-high-priced homes was retained in the revised plan, suggesting that the trend will continue for the time being.
According to the real estate industry on the 7th, the number of record-high apartment transactions in the Gangnam Three Districts fell from 384 in January to 341 in April and 247 in July, before plunging to 100 in August. That was one-quarter of January’s figure and less than half the number recorded in the previous month.
All three districts saw similar declines. Gangnam-gu recorded 26 record-high transactions in August, down 76.6% from 111 in January—the steepest drop. Songpa District fell from 174 to 45, a 74.1% decline, while Seocho District dropped from 99 to 29, down 70.7%.
The sharp increase in the tax burden on high-priced homes under the government’s finalized tax reform plan is cited as the main reason for the plunge in record-high transactions. Under the finalized plan, the tax rate for a tax base of 600 million to 1.2 billion won will rise from the current 1% to 1.3% for both owners of one or two homes and owners of multiple homes. In addition, for owners of one or two homes, the rate for a tax base of 1.2 billion to 2.5 billion won will increase from 1.3% to 1.5% in 2027 and 2% in 2028.
A tax base of 600 million won corresponds to a home with a market value of approximately 3.2 billion won, while 1.2 billion won corresponds to a market value of about 4.4 billion won. Most apartments listed for quick sale are priced at or above these levels.
■ “Most buying and selling decisions have already been made”
The expiration on May 9 of the policy deferring the capital-gains-tax surcharge for owners of multiple homes, along with interest-rate hikes, also had some impact. In this regard, the Bank of Korea (BOK) raised the benchmark interest rate by 0.25 percentage points at each of its Monetary Policy Board meetings in July and August. As a result, the benchmark rate rose to 3% for the first time in one year and nine months.
Ham Young-jin, head of Woori Bank’s Real Estate Research Lab, said, “Most people had already made their buying and selling decisions by May 9,” adding, “I don’t think the market atmosphere will change significantly by the end of the year.”
Transactions have not come to a complete halt, however. Some buyers are even entering the Gangnam Three Districts, viewing the current market as an opportunity to move up. One newlywed couple bought a home in Mapo District, Seoul, intending to live there for more than 10 years, but after seeing a quick-sale apartment in Gangnam, they successfully moved just one year later. They reportedly also sold their Mapo home at a quick-sale price.
A real estate industry official said, “Cash-rich owner-occupiers should actively take advantage of this opportunity,” but added, “However, with interest rates having risen, it will not be easy for record-high transactions to increase as they did in the past.”
[email protected] Kwon Jun-ho Reporter