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Apartment prices decline in three Seoul districts as real estate market shifts

Published: 28 Feb. 2026, 07:00

Apartments in southern Seoul are seen on Jan. 26. [NEWS1]

Apartment prices fell in three districts in southern Seoul — Gangnam, Seocho and Songpa — for the first time in two years, a shift in the capital’s most expensive neighborhoods that signals a broader slowdown in the housing market.

The three districts, long viewed as benchmarks for Seoul’s property market, all posted weekly declines in the fourth week of February, according to the Korea Real Estate Board (REB) on Thursday.

Gangnam District recorded a 0.06 percent drop from the third week of February. Seocho fell 0.02 percent and Songpa declined 0.03 percent. Yongsan District also slipped 0.01 percent, bringing the total number of declining districts to four.

Authorities under the Yoon Suk Yeol administration designated all four districts as land transaction permit zones in March last year, meaning buyers must obtain government approval before purchasing certain properties in an effort to stabilize prices.

Gangnam District’s weekly increase had already slowed to 0.01 percent in the third week of February, showing that price growth had nearly stalled. With Seocho, Songpa and Yongsan Districts also posting declines, the slowdown now appears to be spreading beyond one area.

Seocho District had posted weekly price increases for 97 consecutive weeks since the fourth week of March 2024 before the streak ended in the fourth week of February. The three districts in southern Seoul last posted simultaneous declines in the first week of February 2024.

These areas led last year’s surge in housing prices.

A sale notice is posted at a real estate office in Seoul on Feb. 26. [NEWS1]

Seoul apartment prices rose 8.98 percent in 2025, the largest annual increase since 2004, when prices climbed 23.46 percent. Songpa last year recorded the highest annual increase nationwide at 20.89 percent, followed by Seocho at 14.07 percent, Gangnam at 13.59 percent and Yongsan at 13.16 percent.

Tax pressure drives surge in listings

Momentum had begun to ease in the second half of last year after authorities tightened mortgage regulations, but additional pressure on multi-homeowners further dampened sentiment.

Especially since President Lee Jae Myung announced on Jan. 23 that the government would resume heavier capital gains taxes on owners of multiple homes, property listings have increased sharply.

Apartment listings in Songpa increased 48.1 percent from 3,526 to 5,223. Listings rose 28.9 percent in Yongsan, 28.4 percent in Seocho and 21.7 percent in Gangnam.

Analysts say concerns about higher taxes and possible changes to property tax rules have led more homeowners, including older sellers, to put their homes up for sale. As more listings hit the market, more deals are closing below previous peak prices.

An 84-square-meter (904-square-foot) unit at Maple Xi in Seocho District recently went under contract at 5.05 billion won ($3.5 million), about 600 million won below its previous high of 5.65 billion won recorded in November last year, according to a nearby real estate brokerage.

In some cases, sellers are cutting prices by more than the recent drop in actual sale prices.

A sale notice is posted at a real estate office in Gangnam District, southern Seoul on Jan. 27. [NEWS1]

At Apgujeong Hyundai Apartments, a high-end redevelopment complex in Gangnam District, 64 of the 312 largest 183-square-meter units currently sit on the market. The unit type reached a record 12.8 billion won in December last year, but the lowest current listing now stands at 9.17 billion won, down 3.63 billion won from the peak.

Slowdown spreads beyond core areas

The deceleration is also visible in districts outside the southern and central Seoul regions.

Gangdong District in eastern Seoul saw its weekly gain slow to 0.03 percent. Dongjak District in southern Seoul also recorded a 0.05 percent increase, lower than in previous weeks.

“Prices in Gangnam and Yongsan have already risen significantly, so many sellers can still realize substantial gains even after lowering prices,” said Nam Hyuk-woo, a real estate researcher at Woori Bank. “If tax burdens increase, more quick-sale listings could appear and the downward trend could continue. If this continues, nearby districts such as Mapo District [in western Seoul] and Seongdong [in eastern Seoul] may follow.”

Apartments in Gangnam District, southern Seoul are seen on Oct. 26, 2025. [YONHAP]

In fact, Seoul’s overall apartment price growth has slowed for four consecutive weeks.

Prices rose 0.11 percent in the fourth week of February, the lowest weekly increase since the second week of September 2025, when they rose 0.09 percent.

After peaking at 0.31 percent in the fourth week of January, just before the government announced its housing supply measures on Jan. 29 this year, weekly gains eased to 0.27 percent in the first week of February, 0.22 percent in the second week and 0.15 percent in the third week.

Prices in other parts of Seoul are still rising, but the pace has slowed. In the fourth week of February, Gangseo District in western Seoul posted the biggest weekly gain at 0.23 percent, lower than the top increase of 0.29 percent recorded in Seongdong District in eastern Seoul in the third week of February.

“Demand continues around large apartment complexes, but some complexes are closing deals at lower prices, leading to mixed trends by district and complex,” the REB said.

Gyeonggi market shows mixed signals

Some analysts expect more homes to be put up for quick sale before heavier capital gains taxes return in May, which could push prices down further.

However, large differences between what sellers want and what buyers are willing to pay have kept the number of deals low.

Apartments in Suwon, Gyeonggi are seen on Oct. 15, 2025. [YONHAP]

In Gyeonggi, trends diverged.

Gwacheon saw prices fall 0.1 percent in the fourth week of February, following a 0.03 percent drop the week before.

Meanwhile, Suji District in Yongin rose 0.61 percent in the fourth week of February, up from 0.55 percent the previous week, marking its 11th consecutive week with the highest weekly increase nationwide.

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
BY KIM JUN-YOUNG [[email protected]]