High-End Apartments See Rush of Quick Sales Amid Capital Gains Tax Concerns, While Real Demand Drives Listing Shortage for Mid- to Low-Priced Units

Polarization of Apartment Prices Partially Eases
Ultra-High-End Prices Fall, While Mid- to Low-Priced Apartments Rise

In Seoul, while the prices of mid- to low-priced apartments have risen, the prices of ultra-high-priced apartments have declined, indicating a partial easing of polarization.

According to KB Real Estate on April 12, the average price of apartments in the top 20% (fifth quintile) in Seoul in March 2026 was 3,460.65 million won, down 0.3% (10.55 million won) from the previous month. This is the first time in 25 months, since February 2024, that the average price of apartments in the top quintile in Seoul has decreased compared to the previous month.

Yonhap News Agency

In contrast, the average price of apartments in the bottom 20% (first quintile) in Seoul was 511.63 million won, up 1.2% (6.29 million won) from the previous month. As a result, the quintile ratio fell to 6.76 last month, compared to the previous month. The quintile ratio is calculated by dividing the average price of apartments in the top 20% (fifth quintile) by the average price of apartments in the bottom 20% (first quintile).

This price trend is attributed to several factors: first, the loan limit decreases to 400 million won for apartments priced over 1.5 billion won; second, as the termination of the capital gains tax exemption for multi-homeowners on May 9 approaches, transactions have been centered on urgent sales of high-priced apartments. In addition, demand from genuine homebuyers is concentrated on apartments priced at 1.5 billion won or less, leading to a shortage of listings and the continued phenomenon of prices converging towards 1.5 billion won.

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