Apartment Prices on Seoul Outskirts Start to Fall

Apartment prices on the northern outskirts of Seoul and surrounding Gyeonggi Province have started to drop since president-elect Yoon Suk-yeol promised to waive punitive taxes on property sales for owners of multiple homes for a year. As a result, many appear to be putting excess properties on the market.

According to the Ministry of Land, Infrastructure and Transport, the price of one 84 sq. m apartment near Dongtan subway station in Hwaseong, Gyeonggi Province dropped by around W200 million after peaking at W1.36 billion in August last year and sold for W1.14 billion last month (US$1=W1,271).

An 84 sq. m apartment in Nokbeon-dong, northwestern Seoul, sold for W1.7 billion this month, down around W300 million from its peak prices of W1.37 billion last October. Apartment prices in Seongbuk, Gangbuk and Dongdaemun districts of Seoul also fell.

Lee Eun-hyung at the Korea Research Institute for Construction Policy said, "Multiple-home owners are probably putting their spare apartments up for sale before June 1, which is when property taxes start being calculated."