Seoul Housing Market Shifts as Regulations Tighten
Seoul’s apartment market is experiencing a notable shift, with listings increasing by approximately 5,000 units in the last ten days. This surge in supply coincides with a slowdown in price increases, marking three consecutive weeks of deceleration. The change is largely attributed to a series of statements from President Lee Jae-myung regarding stricter regulations on taxes and loans for multi-homeowners and landlords.
Rising Inventory, Cooling Prices
As of February 20, 2026, the total number of apartments listed for sale in Seoul reached 65,416, according to the real estate platform Asil. This represents an 8.2% increase (4,999 units) compared to February 10th, and a 16.3% jump (9,197 units) since President Lee Jae-myung first signaled the complete of tax benefits for multi-homeowners on January 23rd. Every district in Seoul has seen an increase in listings over the past ten days, with Seongbuk, Seongdong, and Dongjak districts experiencing the most significant growth.
The rapid increase in listings appears to be impacting price growth. Seoul apartment prices rose 0.15% this week (as of February 16th), a continued slowdown from previous weeks (0.31%, 0.27%, and 0.22%). Even in traditionally strong areas like the Gangnam 3 Districts (Gangnam, Seocho, and Songpa) and Yongsan, the rate of price increases has weakened.
“Sell-Off” Sentiment Emerges
Some properties are now being sold at prices below recent highs. For example, a unit at the Dieaich Bangbae complex in Seocho-gu sold for 2.7 billion won on February 11th, 700 million won less than the previous highest transaction price for a similar unit. A unit at the Lemiaan Gangnam Hills complex in Gangnam-gu sold for 2.05 billion won on February 9th, a decrease of 290 million won compared to its previous peak.
The market is seeing a surge in activity in the mid-range housing sector. The Seoul apartment rental market continues to face supply constraints, with rental prices increasing for the 55th consecutive week, rising 0.88% this year alone.
Government Intensifies Regulatory Pressure
President Lee Jae-myung has further signaled his intent to tighten regulations, indicating that existing loan terms for multi-homeowners should be subject to the same restrictions as new purchases. He has directed his cabinet and staff to explore concrete regulatory measures.
The government is too considering broader reforms to property taxes, including potential increases in property taxes and reductions in acquisition taxes. Discussions are underway regarding differentiated taxation based on residency status and property value, as well as potential limitations on benefits for non-resident multi-homeowners.
Focus on Lower-Priced Properties and Redevelopment Areas
Currently, transactions are concentrated in lower-priced properties, particularly in the outer districts of Seoul. Ten of the top ten apartment transactions this year are located in the districts of Nowon, Gangbuk, Gwanak, Guro, Yangcheon, and Jungnang. The Seoul Won I-Park complex in Nowon-gu has seen the highest number of transactions, with 42 units sold.
Areas undergoing redevelopment are also attracting attention, with some properties reaching new highs. A unit in the Gilum New Town 9th block in Seongbuk-gu recently sold for a record 1.198 billion won.
FAQ
Q: What is driving the increase in Seoul apartment listings?
A: The increase is primarily due to President Lee Jae-myung’s statements regarding stricter regulations on multi-homeowners and landlords, prompting owners to sell before the new rules take effect.
Q: Is the Seoul housing market crashing?
A: While price increases are slowing, there is no indication of a crash. The market is adjusting to new regulations and increased supply.
Q: What is the government doing to address the housing situation?
A: The government is considering reforms to property taxes, including potential increases in property taxes and reductions in acquisition taxes.
Q: What should potential homebuyers do?
A: Potential buyers should carefully assess their financial situation and consider the potential impact of the new regulations. It may be prudent to wait and see how the market evolves.
Did you know? The number of apartments listed for sale in Seoul has increased by over 16% since President Lee Jae-myung announced the potential end of tax benefits for multi-homeowners.
Pro Tip: If you are considering selling a property, now might be a good time to list it, as demand remains relatively strong despite the increased supply.
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