Major Apartment Complexes in Seoul's Three Gangnam Districts See Flurry of Lower-Priced Deals: 550 Million Won Drop in Banpo, 210 Million Won in Dogok

[Financial News] Major apartment complexes in Seoul's three Gangnam-area districts have seen contracts signed in recent months at prices hundreds of millions of won below previous transaction prices. Listings with reduced asking prices have also appeared one after another. In Banpo, Seocho District, the transaction price for an apartment on the same floor fell by 550 million won in three months. In Dogok, Gangnam-gu, an apartment of the same size changed hands for 210 million won less than the previous transaction just two weeks later. In Apgujeong, a listing with its asking price cut by 5 billion won in one month also appeared.
Reports from the area indicate that many potential buyers are postponing purchases because they expect listings to increase and prices to fall further next year, while the supply of properties for sale already exceeds buyer demand.
According to the Actual Transaction Price Disclosure System of the Ministry of Land, Infrastructure and Transport and other sources on the 27th, a 84-square-meter unit on the 25th floor of Raemian Firstige in Banpo-dong, Seocho District, was sold for 4.9 billion won on the 7th. Compared with the same floor's transaction at 5.45 billion won on June 17, the price was 550 million won lower in about three months.
An 84-square-meter unit at Dogok Rexle Apartment in Dogok-dong, Gangnam-gu, was sold for 3.78 billion won on the 18th floor on the 1st. Two weeks later, on the 15th, a 16th-floor unit of the same size changed hands for 3.57 billion won, 210 million won less than the earlier transaction.
A 100-square-meter unit on the third floor of Olympic Athletes' Village Complex 1 in Bangi-dong, Songpa District, was sold for 2.92 billion won on May 20. On the 27th of last month, however, the contract was signed at 2.661 billion won, 259 million won less.
Listings with reduced asking prices are also drawing attention. The asking price for a 117-square-meter, third-floor unit at Apgujeong Hyundai Apartment Complex 4 in Apgujeong-dong, Gangnam-gu, fell by 500 million won, from 6.5 billion won on the 11th of last month to 6 billion won on the 12th of this month.
A listing for a 76-square-meter, third-floor unit at Eunma Town Apartments in Daechi-dong, Gangnam-gu, was also reduced from 3.3 billion won on the 25th of last month to 3.04 billion won on the 11th of this month, a cut of 260 million won. The asking price for a 76-square-meter, 10th-floor unit at Jugong Complex 5 in Jamsil-dong, Songpa District, also fell from 3.9 billion won on the 3rd of this month to 3.75 billion won on the 12th.
Real estate market observers believe that the recent transactions largely resemble distressed sales amid weakening buyer demand. Sellers have had to lower prices to make urgent sales because buyers are scarce, while potential buyers are holding back and waiting. Sellers want to dispose of their properties quickly, whereas buyers are waiting—a typical feature of a buyer's market.   
Real estate agents in Daechi-dong also say the market is heavily oversupplied, with the ratio of properties for sale to buyer demand standing at roughly 8 to 2.  
The tax reform, which could lead to more properties being put up for sale next year, is another variable. If the reform increases the burden of holding high-priced homes, homeowners seeking to sell before June 1, the assessment date for the Comprehensive Real Estate Tax, could begin listing their properties in earnest around April or May next year. 
Statistics from the Korea Real Estate Board also show weakness in the Gangnam area. Apartment prices in Gangnam-gu fell 0.36% from the previous week in the second week of September, while Seocho District and Songpa District declined 0.26% and 0.12%, respectively. Gangnam-gu and Seocho District extended their declines to six consecutive weeks, while Songpa District fell for a second straight week. This contrasted with a 0.16% rise in apartment prices across Seoul over the same period.
On the 22nd, President Lee Jae-myung shared a post on X (formerly Twitter) outlining the government's housing supply plan and said, "The era of Gangnam's invincibility and the Republic of real estate speculation will now be a thing of the past," adding, "It must be so."

[email protected] Lee Hwan-joo Reporter