Gangnam Apartment Prices Fall for First Time in Four Months as Tax Reform Looms

What happened to Gangnam apartment prices?

Apartment transaction prices in Seoul's Gangnam area fell 0.29% in August 2026, according to the Korea Real Estate Board, which released the figures on October 16. The decline marked the first drop in four months and came as the southeastern district, covering Gangnam, Seocho, Songpa and Gangdong, became the only part of Seoul to fall while the rest of the city still rose.

Why are prices falling?

Analysts link the decline to the government's tax reform plan unveiled on August 3. The proposal raises taxes on high-priced homes, including a higher comprehensive real estate tax and a reduced long-term holding deduction on capital gains. Many owners of expensive properties began selling quickly, pushing down prices in luxury complexes.

How much have specific apartments dropped?

A 76.79-square-metre unit in Eunma Apartment in Daechi-dong sold for between 3.25 and 3.45 billion won in August. That is roughly 400 to 500 million won below the 3.7 to 3.8 billion won it fetched in November 2025. Its September transaction price was reported in the 3.1 billion won range.

What is happening in other parts of Seoul?

Lower-priced districts in the northeast, known as Nowon, Dobong and Gangbuk, saw the strongest gain at 1.54%. The downtown area around Jongno and Jung-gu rose 1.06%. Seoul's overall index still increased 0.72% in August, though the pace slowed from 1.83% in July.

What comes next?

The Korea Real Estate Board's preliminary September estimate put Seoul's overall apartment price rise at 0.16%, with the Gangnam area expected to fall 1.71%. Experts say falling transaction volumes and rising mortgage rates could slow gains or push more districts into decline.

For international fans

Gangnam is one of Seoul's most famous districts, known for luxury apartments and the nightlife and shopping that K-pop and K-drama fans often associate with the city. Because apartment prices in Korea are heavily influenced by tax policy, changes like these are closely watched by both residents and investors.