Seoul Housing Price Drop Spreads to Han River Belt
1Apartment price drops starting in Gangnam are spreading to the Han River area.
2Prices are falling as multiple-home owners rush to sell to reduce tax burdens.
3With rising assessed values for taxes, housing prices may drop further for now.
📖 Easy Explanation
🔍 Background
Recently, apartment prices in Seoul, especially in Gangnam, have started to drop slightly. This is because people who own multiple homes are rushing to sell them to reduce their tax burden.[1.2]
📌 Key Points
This downward trend has spread beyond Gangnam to the 'Han River Belt' areas like Seongdong and Dongjak districts. Housing prices in Seongdong and Dongjak have turned downward for the first time in about two years and one year, respectively. Even areas with expensive apartments are seeing price drops.
💡 Why It Matters
If you plan to buy or sell a home, you should note that the market atmosphere is changing. In particular, the 'assessed value,' which is the standard for taxes, has risen significantly, likely increasing the property tax burden on homeowners.
🔮 What's Next
Since tax benefits for multiple-home owners are scheduled to end in May, many people are trying to sell their homes before then, which could cause housing prices to drop further for the time being.
📚 Glossary
한강벨트 (Hangang Belt)A collective term for major areas in Seoul along the Han River, such as Mapo, Yongsan, and Seongdong.
양도세 중과 유예 (Yangdose Junggwa Yuye)A temporary suspension of heavy capital gains taxes imposed on multiple-home owners when they sell their properties.
공시가격 (Gongsikagyeok)The official assessed value of real estate set annually by the government to calculate property and other taxes.