Impact of Loan Regulations on Seoul Metropolitan Apartment Sales

Seoul’s housing market is experiencing intensifying upward pressure and divergent pricing trends as of April 2026, despite the implementation of stricter loan regulations and tax measures designed to curb demand.

According to the Korea Real Estate Board, apartment prices in Seoul rose by 0.1 percent during the first week of April 2026. While some high-tier areas have seen a decline, the overall market remains supported by gains in mid to lower-priced districts.

Market Divergence and Regional Price Shifts

Current data indicates a shift in demand. While loan regulations have dampened activity in top-tier popular areas, demand has moved toward other regions where financing remains available.

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Notable price increases have been recorded in non-Gangnam districts. Specifically, Gangseo rose by 0.25 percent, while Seongbuk and Guro each posted increases of 0.23 percent.

This trend contrasts with the three Gangnam districts—Seocho, Gangnam and Songpa—which have experienced a widening decline in prices.

the average sales price for apartment units located on the northern side of the Han River has crossed 1.1 billion won for the first time, driven by tightened loan regulations and a weak supply of housing rentals.

Impact of Loan and Tax Regulations

The government has implemented several measures to stabilize the market, including a plan introduced on the 1st of the month to regulate loans for multi-homeowners.

Previous stringent regulations capped the upper limit of mortgage loans for houses in regulated regions and the metropolitan area at 600 million won. Data from the real estate platform Zigbang analyzed Ministry of Land, Infrastructure and Transport records showing that high-price transactions in Seoul plummeted by 74 percent in the two weeks following the June 27 announcement of those regulations.

In the two weeks prior to the June 27 announcement, there were 1,141 high-price transactions. Following the announcement, this number dropped to 300 transactions between June 27 and July 10.

Seongdong-gu saw one of the sharpest declines, with high-price transactions dropping from 139 to 22, representing an 84 percent reduction.

Expert Projections and Future Risks

Market anxiety is growing among professionals regarding the expiration of temporary tax relief. A survey of 25 experts from research institutions and academia conducted by JoongAng Sunday revealed significant concerns about the period following the end of the temporary suspension of heavy capital gains taxes for multi-homeowners, which is set to expire in May.

• 64 percent of respondents project Seoul home prices will rise by more than 3 percent after the tax relief ends.
• Only 8 percent of respondents expect a decline in prices.
• All surveyed respondents anticipate that jeonse (lump-sum deposit) rents will increase.

The decrease in listings, coupled with higher tax burdens, is creating the possibility of a dual increase in both home prices and jeonse rents.

Historical Context of Price Volatility

The current volatility follows a period of steady growth. For example, in October 2024, Seoul apartment prices had risen for 31 consecutive weeks, though the rate of increase had slowed to 0.09 percent by October 24, 2024, due to the impact of loan regulations.

During that period, the Korea Real Estate Board noted a gap between the asking prices of sellers and buyers, leading to a backlog of listings. Data from Asil showed Seoul listings increased from 84,214 units on September 24, 2024, to 87,184 units by October 24, 2024.

More recently, reports from April 6, 2026, indicated that upward transactions in Seoul hit their lowest point since August 2023, with Gangnam areas seeing an 11.2-point drop as tax pressures drove urgent sales.