The Seoul apartment market is experiencing diverging price trends between the Gangnam and Gangbuk areas. While prices in Seocho and Gangnam districts are declining, Gangbuk, which includes Seongbuk and Nowon districts, has seen prices rise by around 0.5%, driving the overall increase in Seoul housing prices.
According to the Korea Real Estate Agency's weekly apartment price trends report released on September 3, the rate of increase in Seoul apartment sales was 0.22%, a decrease of 0.07 percentage points from the previous week’s 0.29%. While key areas in Gangnam are experiencing declines, Gangbuk is showing a notable increase, highlighting a clear regional disparity.
Gangnam Buyer Sentiment Drops, Gangbuk Sees Growth
Looking at the detailed figures, among the three districts in Gangnam, Gangnam District recorded a decline of -0.41%, widening its drop by 0.3 percentage points from the previous week. Seocho District fell by 0.23%, a decrease of 0.18 percentage points. Songpa District saw a slight increase of 0.01%, but this was a reduction of 0.08 percentage points from the previous week, nearing a stable range.
In contrast, the previously considered outer Gangbuk area is showing a clear upward trend. Seongbuk District recorded the highest increase at 0.54%, followed by Jungnang at 0.52%, Nowon at 0.5%, and Gangbuk at 0.45%.
A similar trend is observed in the rental market. During the same period, Seoul apartment rents rose by 0.21%, while Gangnam and Seocho districts recorded declines of -0.13% and -0.1%, respectively. Conversely, Seongbuk and Gangbuk districts saw increases of 0.38%, and Nowon and Dobong districts rose by 0.37% and 0.32%, respectively.
The KB Real Estate 'Weekly KB Apartment Market Trends' report released on the same day also confirmed the price differences between Gangnam and Gangbuk. Gangnam District recorded a decline of -0.04% for the third consecutive week, while Nowon District saw an increase of 0.63%, and Dobong District rose by 0.45%, ranking first and second, respectively.
In the rental market, Gangnam District recorded a decline of -0.03% for the third consecutive week, while Nowon District's increase of 0.46% surpassed the average rental increase in Seoul of 0.19%.
A representative from KB Real Estate stated, "In Gangnam, buyers and sellers have adopted a wait-and-see approach amid ongoing discussions regarding the revised tax reform plan, leading to a slowdown in transactions. In contrast, in Nowon District, affordable listings are being quickly absorbed, causing prices of newly listed properties to rise as well."
Tax Reform and Interest Rate Hikes Prompt Caution in Gangnam, While Outer Areas Adjust
The weakness in the core Gangnam area is attributed to uncertainties surrounding tax reforms targeting high-priced homes and other policy uncertainties.
On August 3, the government announced a tax reform plan for 2026, which included adjustments to the comprehensive real estate tax and capital gains tax systems. Initially, it proposed reducing the basic deduction for non-resident homeowners and increasing the tax burden cap, but on September 1, it reversed its stance to maintain the current system, increasing policy uncertainty within a month.
Financial conditions have also played a role. The Bank of Korea's Monetary Policy Committee raised the base interest rate from 2.75% to 3.00% on August 27. Although the government expanded the total supply capacity for household loans on August 13, it decided to maintain key regulations such as loan-to-value (LTV) and debt service ratio (DSR), indicating that the burden of financing high-priced homes remains significant.
In contrast, mid-range areas are supported by relatively lower purchase prices and genuine demand. Homebuyers, facing price burdens and limited inventory, are turning their attention to Gangbuk, where financing challenges are less severe.
Kim In-man, head of Kim In-man Real Estate Research Institute, stated, "Due to the recent impacts of tax reforms and loan regulations, there has been an increase in properties for quick profit realization in Gangnam, while buyers are adjusting their expectations in the outer areas of Seoul. For the time being, the buying trend is expected to continue in Gangbuk and the outskirts of Seoul."
* This article has been translated by AI.
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