Average apartment prices in Seoul fell by the largest margin in two years last month. According to consultancy Real Estate 114 on Monday, the average apartment price dropped 0.42 percent from the previous month. It was the biggest drop since 0.43 percent in July 2010.

None of Seoul's 25 districts saw apartment prices rise in July as expectations cooled significantly, and many renovation projects have been delayed.

Also, July is traditionally a slow season for apartment sales, while rising household debt among Koreans compounded by the impact of the eurozone fiscal crisis also dampened the real estate market.