"Sold One Bangbae-dong Apartment for Stock Investment"...Funds from Multiple Homeowners Flow into the Stock Market

Inquiries Surge Ahead of CGT Surcharge Reinstatement
Tax Burdens and Stock Market Rally Drive the Trend

With the suspension of the additional capital gains tax on multiple homeowners set to end in May, high-net-worth individuals are showing signs of liquidating their real estate assets and reallocating funds into domestic and foreign stocks or bonds. This trend is the result of concerns over excessive tax burdens and the search for new investment destinations, especially after witnessing last year’s stock market surge.

As the suspension of the additional capital gains tax on multiple homeowners has ended, high-net-worth individuals are showing signs of liquidating real estate and shifting funds into domestic and foreign stocks or bonds. Photo by Yonhap News Agency

According to private bankers at commercial banks on the 12th, inquiries about asset liquidation have increased significantly ahead of the scheduled implementation of the additional capital gains tax on multiple homeowners on May 9. A private banker at a major commercial bank in the Gangnam area said, "Affluent clients who have concluded that it will be difficult to bear the tax burden for the next three to four years are actually putting non-prime residential properties on the market first."

According to real estate big data company Asil, as of the previous day, there were 76,715 apartment listings in Seoul, a 24.2% increase compared to one month ago. By district, Gangdong-gu saw the largest increase at 45.9% (4,311 listings), followed by Seongdong-gu at 44.8%, Seongbuk-gu at 41%, and Dongjak-gu at 40.3%. Since President Lee Jaemyung announced on January 23 that there would be no suspension of the additional capital gains tax for multiple homeowners, the number of apartment listings in Seoul has surged by 38.9%.

Some individuals have already restructured their asset portfolios by liquidating real estate and moving funds into domestic and foreign securities. One high-net-worth client managed by a commercial bank’s private banker recently sold an apartment in Bangbae-dong and made an additional investment of around 3 billion won in stocks. A private banker at a commercial bank said, "Because of their previous experience paying property holding taxes under the former administration, some clients are making decisions more quickly," adding, "There are more clients than expected who are deciding to liquidate their assets at this time."

In front of a real estate office located within a large apartment complex in downtown Seoul in February, apartment sale information is posted. 2026.02.05

Another high-net-worth individual recently sold an inherited apartment in Seoul through a quick sale. The private banker who managed the process said, "They had been contemplating whether to keep the property, but once regulations and tax issues for multiple homeowners became prominent, they quickly decided to liquidate. If the real estate market had been rising like in the past, they might have chosen to rent or lease rather than sell."

It has also been confirmed that a significant portion of the liquidated real estate funds is being directed into domestic securities markets such as funds and stocks. A private banker at a commercial bank said, "Since these are funds from real estate, a high proportion is being allocated to products considered safe, such as time deposits and U.S. Treasury bonds," but added, "Some of the funds are flowing into the stock market as well." The banker also explained that, to stabilize returns, some funds are being allocated to alternative investment assets such as REITs or long-short funds.

Analysts say this trend has been made possible by the government's active efforts to boost the domestic stock market, which has provided new investment opportunities. A private banker at a commercial bank said, "The government declared from the start of its term that it would support stock prices, and it has actually created an environment where wealthy individuals are encouraged to invest in advance. With people witnessing a golden cross between the U.S. and domestic stock markets, as well as between the real estate and stock markets, the domestic securities market is being reevaluated and investment activity is picking up."

However, there is still a considerable proportion of new investments being made into the U.S. stock market, which has recently entered a correction phase after last year’s boom. A private banker at a commercial bank said, "Some people believe that the U.S. stock market is undervalued due to the impact of the midterm elections," adding, "This is one reason why funds flowing into U.S. securities are not decreasing."

This content was produced with the assistance of AI translation services.