In the real estate market across Banpo-dong and Jamwon-dong in Seocho District, Seoul, sellers and buyers are locked in a tense waiting game. Listings are not flooding the market and transactions are not brisk, but when listings at asking prices nearly 1 billion won below the peak emerge, especially around major reconstruction apartments, deals are occasionally being concluded.
According to the Banpo area real estate sector on the 24th, as the end date (May 9) of the temporary suspension of heavier capital gains tax on multi-homeowners approaches, actual transaction prices are being agreed one by one. The 84㎡ unit in Jamwon-dong "Maple Xi" recently sold for 5.08 billion won and 5.1 billion won, respectively. Compared with last year's peak price (5.65 billion won), that is more than 500 million won lower.
Market attention is focused on "ultra-urgent" listings that have slashed their price tags by hundreds of millions of won. The 84㎡ unit in "Raemian One Bailey," a landmark apartment in Banpo-dong, with excellent high-floor views, has been listed in the 6.2–6.3 billion won range. Compared with the Aug. peak last year of 7.15 billion won, the price is about 900 million won cheaper. The homeowner, who had been holding firm at 6.8 billion won, is said to have cut the asking price by more than 500 million won. The 59㎡ unit in Banpo-dong "ACRO River Park" also came on the market at 4.2 billion won, 500 million won below the Nov. peak last year (4.7 billion won).
The Banpo area real estate sector said that until May 9 a "buyer's market" has opened in which buyers negotiate under favorable terms. Buyers also find it hard to jump in due to heavier acquisition tax and loan regulations, but buyers with ample cash who find urgent listings priced hundreds of millions of won below prior transactions are signing contracts immediately.
An employee, identified as A, at a licensed real estate agency in Jamwon-dong said, "Inquiries from buyers asking about the prices of urgent listings from multi-homeowners are pouring in," but added, "Homeowners in Gangnam do not seem to think they must sell their homes in a hurry."
An employee, identified as B, at a licensed real estate agency in Banpo-dong said, "In large complexes with more than 1,000 households, only about one or two urgent listings are appearing with prices down by hundreds of millions of won from existing market levels or asking prices," adding, "Most of these are from temporary two-home owners or multi-homeowners who are putting properties on the market at lower prices to dispose of them before May 9 to reduce capital gains tax."
To reduce their tax burden, multi-homeowners are first disposing of units in the Gangbuk area, which are relatively lower in value, while keeping apartments in Gangnam areas such as Banpo as a "single solid home." A said, "In the current Banpo real estate market, listings are scarce, but prices are occasionally falling in transactions during this transitional phase," adding, "While downward pressure on prices is clear due to the government's tighter regulations, homeowners' asset defense mindset is holding firm."
In the real estate sector, there are also forecasts that the Gangnam real estate market will tighten further after May 9. B said, "If the tax burden increases after May, homeowners are likely to enter into full-fledged 'holding out,' thinking they will respond by raising monthly rents," adding, "Homeowners with heavy holding tax burdens have already completed sales or gifts early, and the remaining owners will watch market conditions and decide slowly rather than rushing to dump higher-tier apartments."