Gangnam, Seocho fall for 3rd straight week as buyers shift to Seoul's outer districts

Apartment prices in Seoul's Gangnam-gu and Seocho-gu fell for a third consecutive week, with Gangnam-gu's decline deepening from the previous week. Analysts attributed the drop to a surge in distressed listings at high-end complexes in Daechi and Apgujeong-dong following the government's tax reform proposal. Outer Seoul districts and well-connected areas of Gyeonggi Province, by contrast, continued to climb.

According to the Korea Real Estate Board's weekly apartment price survey for the fourth week of August 2026, based on data as of Monday, Seoul apartment prices rose 0.29 percent, accelerating from 0.22 percent the previous week.

Among Seoul's 25 autonomous districts, 23 posted gains. Jungnang-gu led with a 0.56 percent increase, driven by transit-oriented areas in Sinnae and Sangbong-dong. Seongbuk-gu followed with a 0.55 percent rise, led by small- and mid-sized units in Jeongneung and Gireum-dong. Gangbuk-gu also rose 0.55 percent, with large complexes in Mia and Beondong leading the way, while Dobong-gu gained 0.54 percent on strength in Chang and Dobong-dong — underscoring the continued momentum in outer districts.

Gangnam-gu and Seocho-gu, however, both extended their losing streaks to three weeks. Seocho-gu's decline narrowed to 0.05 percent from a steep 0.09 percent drop the previous week, but Gangnam-gu's fall deepened to 0.11 percent from 0.05 percent.

The broader price declines in Gangnam and Seocho — home to ultra-premium properties in Banpo and Apgujeong — reflect a wave of heavily discounted distressed listings hitting the market. The government's 2026 tax reform proposal, announced Aug. 3, included measures that would increase property-holding tax burdens even for owner-occupants of high-value homes priced in the late 4 billion won ($2.89 million) range.

In Gyeonggi Province, Suwon's Yeongtong and Gwangmyeong led the gains. Suwon's Yeongtong-gu rose 0.75 percent, driven by small- and mid-sized units in Mangpo and Yeongtong-dong, while Gwangmyeong rose 0.69 percent on strength at major complexes in Haan and Cheolsan-dong. Yongin's Suji-gu gained 0.66 percent, led by Pungdeokcheon and Sanghyeon-dong. Yongin's Giheung-gu (0.63 percent), Seongnam's Jungwon-gu (0.60 percent) and Anyang's Manan-gu (0.56 percent) also posted gains.

Particularly notable was Dongtan-gu in Hwaseong, a hub of the so-called semiconductor belt. After appearing to cool with a 0.12 percent gain the previous week, the district surged 0.54 percent this week. Since June through Tuesday, roughly 65 percent of all apartment transactions in Dongtan-gu across unit-size categories have set new record prices, reflecting a rapid acceleration in values.

Analysts say overall real estate buying demand is shifting toward what the market calls "a less premium single home" — a moderately priced property rather than a trophy asset. "With government policy tightening both loans and taxes, end-users such as newlyweds and young buyers are concentrating on mid- to low-priced complexes," said Yoon Ji-hae, head of the research lab at Real Estate R114. "As interest rates rise and loan limits shrink, even buyers who had their eyes on high-end homes are now looking for a less premium single home."

Yoon added that outer Seoul districts are now undergoing a "catch-up" in prices that had been suppressed by political and policy factors after apartment values in the three Gangnam-area districts surged last year.

For more on the outer Seoul housing market, see related coverage.