Gangnam Redevelopment Listings Surge Over 40% Following Real Estate Tax Reform

Rising Real Estate Holding Tax Burden on High-End Gangnam Apartments
Shindong-A Listings in Suseo-dong Up 62%, Suseo Kachimaeul Up 40%
Gyeongnam Apartment Listings in Gaepo-dong Hit Two-Year High

Following the announcement of plans to strengthen the comprehensive real estate holding tax on ultra-high-priced homes valued at 4 billion won or more, the number of listings for redevelopment apartment complexes in Seoul’s Gangnam area surged by more than 40%.

A property price list is posted in front of a real estate agency in Gangnam-gu, Seoul. Photo by Yonhap News.

According to Real Estate 114 on August 22, the number of listings for Shindong-A Apartment in Suseo-dong, Gangnam-gu was 32 on August 2, the day before the tax reform plan was announced, but rose to 52 by August 21—a 62.5% increase. In Suseo Kachimaeul, listings grew from 52 to 73 over the same period, marking an increase of 40.4%. Gaepo-dong’s Gyeongnam Apartment saw 112 listings enter the market, the highest level since October 2024. Looking at all of Seoul, the total number of properties on the market climbed from around 61,000 to 65,000, an increase of 4,000, during this timeframe.

A licensed real estate agent in Gaepo-dong, Gangnam-gu said, “There is a large elderly population here, and because the recently announced tax reform plan increases the burden of holding taxes, some are putting their apartments up for urgent sale.” A Suseo-dong agent also stated, “People with multiple homes or non-resident single-homeowners are rushing to sell their apartments at reduced prices.”

The rise in listings in the Gangnam area is largely due to attempts to avoid the comprehensive real estate holding tax. According to simulations by the Ministry of Economy and Finance, if a 4 billion won apartment is owned but not lived in, the holding tax would increase by more than 11 million won compared to the current system. Even if the owner lives in the apartment, the burden would still rise by more than 3 million won.

A Real Estate 114 official commented, “With the deduction for property holding reduced and transitioning to a deduction based on residence, there has been an increase in listings from owners of expensive redevelopment apartments in Gangnam seeking to avoid heavier taxation.” The official added, “Following the August 3 real estate tax reform and the August 13 housing supply and financial measures, a series of real estate policies has prompted a steady stream of consultation inquiries in the brokerage sector reflecting various interests.”

The spike in listings is causing home prices in the Gangnam area to trend downward. According to the Korea Real Estate Board, in the third week of August, the Gangnam-gu apartment price index dropped by 0.05% from the previous week. After declining by 0.02% last week—the first drop in about three months—prices have now fallen for a second consecutive week. Seocho-gu’s index was down by 0.09%.

However, actual transactions remain sluggish. Industry watchers attribute this to lingering policy uncertainty, as changes could still occur during the National Assembly’s deliberation on the tax reforms. The industry consensus is that “potential buyers are likely to remain on the sidelines until this uncertainty is resolved.”

Based on AI pricing surveys by Real Estate 114, in the third week of August, apartment prices nationwide rose by 0.14%. Seoul increased by 0.13%, Gyeonggi and Incheon jumped by 0.21%, resulting in a 0.17% rise across the greater capital region. In non-metropolitan areas, the five major cities posted a 0.07% increase, while other provinces saw a 0.03% uptick. Out of the 17 provinces and major cities nationwide, 15 recorded increases, one was unchanged, and one declined, with price increases outnumbering declines.

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