As bargain listings rise in Gangnam, buyers from Gangdong, Mapo and beyond trade up

In Apgujeong, some listings drop by up to 1.4 billion won

Gangnam's three districts see record-high sales fall to just 100 in August

Listing information posted at a real estate agency in Gangnam-gu, Seoul. (Yonhap)
Listing information posted at a real estate agency in Gangnam-gu, Seoul. (Yonhap)

As tougher taxes on high-priced homes push more bargain listings onto the Gangnam market, trade-up transactions are picking up, with buyers seizing the moment to move into more sought-after neighborhoods. Some Gangnam-area units have recently dropped to the 1 billion won ($747,000) range, prompting buyers to sign preliminary contracts before selling their current homes.

Bargain listings draw Mapo and Yeouido buyers into Banpo — Gangdong-to-Jamsil reconstruction cases, too

According to the Ministry of Land, Infrastructure and Transport's real estate transaction disclosure system Thursday, an 84-square-meter unit at Acro River Park in Banpo-dong, Seocho-gu, sold for 5.39 billion won in August — 910 million won below the 6.3 billion won record high set about four months earlier. Court registry records show the buyer was a resident of Ahyeon-dong, Mapo-gu, identified only as A, apparently trading up after selling an existing home to move to Banpo.

A similar case emerged nearby. An 84-square-meter unit at Banpo Prugio Apartment, steps from Sinbanpo Station, hit a record high of 3.4 billion won in July but sold for 2.99 billion won on Aug. 25. The buyer was a resident of Yeouido-dong, Yeongdeungpo-gu, who moved once Banpo prices slipped into the 2 billion won range.

A trade-up into a reconstruction property also surfaced. Buyers who jointly owned a unit at Olympic Park Foreon in Dunchon-dong, Gangdong-gu, purchased a 131-square-meter unit at Woosung Apartment in Jamsil-dong, Songpa-gu, for 3.4 billion won — 500 million won below the 3.9 billion won record high set in May.

"Lately, inquiries about buying have actually been outpacing those about other matters like gifting," said an asset management consultant at a bank. "Some are treating Gangnam apartments that have dropped by nearly 1 billion won as a buying opportunity, signing preliminary contracts before their existing homes are even sold."

Elderly and multi-home owners list properties — a golden opportunity for cash-rich buyers

Behind this trade-up trend lies the government's finalized tax reform, which has raised the tax burden on homeowners and, in turn, spurred a wave of bargain listings.

Under the 2026 tax reform, the government raised the fair market value ratio used to calculate the comprehensive real estate tax, increasing the burden particularly on ultra-high-priced homes worth more than 3.5 billion to 4 billion won. It also overhauled the long-term holding special deduction system to factor in actual residency periods, tightening deduction requirements for multi-home owners and non-resident properties.

As a result, bargain listings have been emerging in Gangnam, mostly from elderly owners short on cash flow or multi-home owners wary of capital gains tax. "Owners nearing retirement, facing cash flow issues or tax burdens, are listing units several hundred million won below market," said an asset management consultant at a bank.

Listing information posted at a real estate agency in Gangnam-gu, Seoul. (Yonhap)
Listing information posted at a real estate agency in Gangnam-gu, Seoul. (Yonhap)

The 84-square-meter unit at Acro River Park in Banpo-dong, for example, is now listed from 4.9 billion won — more than 1.4 billion won below its 6.3 billion won record high. In Apgujeong-dong, an 111-square-meter unit at Shin Hyundai Apartment is asking from 5.5 billion won, 2 billion won below its peak. An 84-square-meter unit at Gaepo Xi Presidences in Gaepo-dong, which traded at a record 4.27 billion won at the end of last year, is now asking from 3.44 billion won — about 800 million won lower.

As prices keep adjusting downward, the number of record-high sales in Gangnam has fallen sharply. Record-high transactions across Gangnam's three districts numbered 384 in January, dropped to 341 in April and 247 in July, then fell to just 100 in August.

By district, Gangnam-gu saw the steepest decline, with its August record-high transaction count of 26 down 76.6 percent from 111 in January. Songpa-gu fell 74.1 percent over the same period, from 174 to 45, while Seocho-gu dropped 70.7 percent, from 99 to 29.

"Banpo apartment prices are currently undergoing a correction of 20 to as much as 25 percent," said Nam Hyuk-woo, a researcher at Woori Bank's real estate research institute. "For those holding cash, this is a clear opportunity."


hss@heraldcorp.com