With the government signaling it will end the grace period on capital gains tax surcharges for owners of multiple homes, the rise in Seoul apartment prices appears to have slowed slightly.
According to the weekly apartment price trends for the second week of February (as of the 9th) released by the Korea Real Estate Board (REB) on the 12th, the average sale price growth rate for Seoul apartments was 0.22%, down 0.05 percentage points from the previous week. Following a 0.04 percentage point narrowing in the first week of February (0.27%) from a week earlier, this marks a second straight week of deceleration.
After the government repeatedly confirmed it would end the grace period on capital gains tax surcharges for multiple-home owners on May 9 this year, some owners of multiple homes are believed to have lowered asking prices and listed properties to reduce their tax burden, affecting the market.
However, the upward trend itself continued for the 53rd week. The REB said, "With higher-priced transactions concluded mainly in preferred complexes such as those pushing for reconstruction, large complexes, and areas near subway stations, Seoul overall rose."
By area, non-Gangnam or outer districts with relatively more mid- to low-priced listings were strong. Gwanak District (0.40%) saw higher gains led by large complexes in Bongcheon and Sillim, and Seongbuk District (0.39%) centered on Gireum and Donam. Guro District (0.36%), Seongdong District (0.34%), Yeongdeungpo District (0.32%), Dongdaemun District (0.29%), Nowon District (0.28%), Gangseo District (0.28%), and Mapo District (0.28%) also posted relatively high increases.
By contrast, Seocho District (0.21%→0.13%), Gangnam District (0.07%→0.02%), and Songpa District (0.18%→0.09%) showed slower gains and relatively lower growth than other areas, forming a contrast.
In Gyeonggi (0.13%), Suji District in Yongin (0.75%) stood out with a sharp rise, while Dongan District in Anyang (0.68%), Guri (0.55%), and Gwangmyeong (0.54%) also posted large gains. Gwacheon (0.19%→0.14%) narrowed by 0.05 percentage points from the previous week, and Bundang District in Seongnam (0.40%→0.38%) narrowed by 0.02 percentage points.
Incheon rose 0.03% from the previous week, and the broader Seoul metropolitan area climbed 0.14%. Outside the metropolitan area (0.03%), the five major metropolitan cities rose 0.02% and the eight provinces rose 0.04%, while Sejong (-0.04%) turned downward.
Nationwide, the growth rate was 0.09%, the same as the previous week. Nationwide apartment jeonse prices rose 0.08% from a week earlier.
Seoul (0.11%) rose overall as the spring moving season approached, with a shortage of listings and more tenant inquiries, higher-priced transactions occurring mainly near subway stations and in large complexes, and continued demand near top school districts.
Nowon District (0.28%) posted a higher jeonse price growth rate centered on station areas in Wolgye and Junggye, and Seocho District (0.22%), Seongbuk District (0.21%), Seongdong District (0.18%), and Dongjak District (0.17%) also outpaced the Seoul average.
Incheon rose 0.07% and Gyeonggi rose 0.10%, with the broader metropolitan area up 0.10%. Outside the metropolitan area (0.06%), jeonse prices rose across the five major metropolitan cities (0.07%), Sejong (0.11%), and the eight provinces (0.05%).