Seoul Ultra-Luxury Apartments: Price Adjustments Accelerate Due to Loan Restrictions

TechubNews · 2026-03-22T06:48:53+00:00

Seoul's high-end apartment market is experiencing gradual price adjustments due to loan restrictions and tax policies, particularly for apartments priced at 2.5 billion won and above. Homebuyers are shifting toward mid-to-low-priced apartments below 15 billion won to secure higher loan amounts, and the market is rapidly transforming. Future demand is expected to concentrate more on lower-priced residential properties.

TechubNews

2026-03-22 06:48:53

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Seoul’s high-priced apartment market is facing downward pressure due to loan restrictions and tax burdens. In particular, apartments originally trading above 2.5 billion KRW are showing a trend of price adjustments below 2.5 billion KRW due to loan limitations.

According to real estate analysis firm “Jikutosu,” since the government implemented high-priced housing loan restrictions last October, some apartments that previously traded above 2.5 billion KRW have fallen below that threshold. Under this policy, the mortgage limit for homes over 2.5 billion KRW is only 200 million KRW, while homes below 2.5 billion KRW can receive up to 400 million KRW in loans. This has led buyers to flock toward apartments under 2.5 billion KRW that offer higher loan amounts.

In redevelopment-anticipated projects like the Yeouido model apartments, there has also been a noticeable decline in prices. Recently, many units are being sold quickly at prices several billion KRW lower than before. Analysts believe these distressed sales are a strategy by sellers to avoid paying high capital gains taxes by selling at lower prices.

Seoul’s apartment market is accelerating its shift toward mid- and low-priced units below 15 billion KRW. In areas north of the Han River, transactions of apartments under 15 billion KRW now account for 94%, indicating demand is increasingly focused on more affordable housing. Since loans for apartments under 15 billion KRW can reach up to 600 million KRW, demand for such properties is expected to continue growing.

This phenomenon is changing the transaction proportions across different price segments in Seoul’s apartment market. Under the influence of loan restrictions and tax policies, downward price adjustments are occurring gradually rather than through short-term sharp fluctuations, helping to stabilize the market. Moving forward, housing demand influenced by loan conditions and tax burdens is likely to continue shaping market trends.

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