A wait-and-see mood has settled over Seoul's three Gangnam-area districts — Gangnam-gu, Seocho-gu and Songpa-gu — following the announcement of a tax reform package targeting ultra-high-priced homes. While the premium market pauses, apartments on the city's outer fringes that can be purchased within tighter loan limits have continued to climb, widening Seoul's overall price gains. In Gyeonggi Province's Seongnam, prices rose across all three districts, led by reconstruction-eligible apartments in Bundang.
The Korea Real Estate Board's weekly nationwide apartment price survey, released Thursday, showed Seoul's apartment sale price index rose 0.26 percent in the first week of August (as of Monday), slightly faster than the previous week's 0.25 percent. Gyeonggi Province and Incheon each gained one basis point from the prior week, rising 0.16 percent and 0.03 percent, respectively.
Price gains in Seoul's three Gangnam districts were notably limited — Gangnam-gu rose just 0.01 percent, Seocho-gu 0.02 percent and Songpa-gu 0.15 percent. Analysts attributed the restraint to a growing number of owners weighing their options — whether to sell, hold or transfer their properties — following the tax reform plan announced this week.
"Owners of a single high-value home now have no choice but to weigh the costs and benefits of selling, holding or gifting," said Nam Hyeok-woo, a real estate researcher at Woori Bank. "A tug-of-war between sellers deferring decisions and buyers waiting for distressed listings is likely to persist for some time."
Driving Seoul's overall gains instead were Jung-gu, up 0.54 percent, and the more affordable Jungnang-gu, up 0.52 percent — districts associated with what the market calls "less prime but still solid" single-home picks. In Jung-gu, a 59-square-meter unit at Seoul Station Central Xi set a record high when it sold for 1.95 billion won ($1.37 million) on July 16. Jungnang-gu's flagship complex, Sagajeong Central I'Park, also hit a new high when a unit of the same size changed hands for 1.35 billion won on July 6.
"Amid a locally cautious atmosphere, price-rising transactions were concentrated in reconstruction-targeted complexes and large developments or transit-oriented areas with sustained demand," a Korea Real Estate Board official said.
Elsewhere in Seoul, Seongbuk-gu rose 0.49 percent, led by small and mid-size units in Donam and Hawolgok-dong; Nowon-gu gained 0.46 percent on strength in Sanggye and Wolgye-dong; and Seodaemun-gu climbed 0.43 percent, driven by Hongjae and Namgajwa-dong. Geumcheon-gu added 0.32 percent on the back of key complexes in Siheung and Doksan-dong, Guro-gu rose 0.30 percent in transit-oriented areas of Gaebong and Guro-dong, and Gwanak-gu gained 0.30 percent, led by large complexes in Sillim and Bongcheon-dong.
"Mid-tier Seoul districts such as Gangseo, Seongbuk, Dongdaemun and Seodaemun-gu are still posting high double-digit percentage gains, though price movements have flattened compared with last week," Nam said. "On the outer fringes, prices are consistently rising in apartments priced around 600 million won, which are less affected by tightened loan limits."
In Gyeonggi Province, Seongnam's Sujeong, Jungwon and Bundang districts all accelerated. Bundang-gu rose 0.43 percent, driven by older apartments in Jeongja and Gumi-dong, while Sujeong-gu gained 0.36 percent and Jungwon-gu climbed 0.41 percent.
The so-called semiconductor belt also continued its upward trend. Giheung-gu in Yongin, where relatively affordable apartments remain available, rose 0.52 percent — outpacing Seoul's overall gain. Hwaseong's Dongtan district climbed 0.21 percent, up from 0.15 percent the previous week. Both areas, however, have shown a moderation in their pace of gains since being designated as regulated zones.
hss@heraldcorp.com
