October 2026: Seoul Housing Market Outlook and Practical Strategies from Licensed Real Estate Agents

Seoul apartment prices have risen for 86 consecutive weeks, but Gangnam and Yongsan have already turned to a downward trend. In contrast, the outer districts of Seoul are leading the upward momentum. This polarization is attributed to tax reform and changes to the long-term holding special deduction. From the perspective of licensed real estate agents, this article summarizes the key points of the current market and practical response strategies.

October 2026: Seoul Housing Market Outlook and Practical Strategies from Licensed Real Estate Agents

1. Why Have Gangnam and Yongsan Declined?===

Prices in the three Gangnam districts have fallen for eight consecutive weeks, while Yongsan District has shifted to a decline after 22 weeks. This is due to recent tax law amendments that increased the burden on multi-home owners. Sellers are showing a tendency to lower prices to dispose of their properties quickly. On the other hand, buyer sentiment has weakened, leading to a decrease in transaction volume. As a result, these areas have entered a phase of short-term adjustment.

💡 Key Point
The decline in Gangnam and Yongsan is primarily caused by increased tax burdens and a rush to sell.

2. Why the Outer Districts Are Leading the Rise===

Apartments in Seoul’s outer districts continue to see steady buying demand, largely supported by parents of younger buyers. According to reports, transactions for 2-pyeong (approx. 66 sqm) units are active, with actual demand holding the upper hand. Additionally, improved transportation and expanded living infrastructure are enhancing the appeal of these areas. These overlapping factors are keeping the outer districts on an upward trend.

💡 Key Point
The rise in outer districts is driven by actual demand supported by parental assistance and infrastructure improvements.

3. Long-Term Holding Special Deduction Cap Applies in 2028===

The long-term holding special deduction has allowed deductions up to a certain amount until now, but a cap will be applied starting in 2028. In other words, the deduction benefit will no longer apply to amounts exceeding this limit. Consequently, more owners are considering moving up their selling dates. In particular, owners of high-priced apartments are considering early sales to reduce their tax burden. Licensed real estate agents must accurately inform clients about this regulatory change.

💡 Key Point
The cap on the long-term holding special deduction starting in 2028 may change selling timing strategies.

4. Tips from Licensed Real Estate Agents for Actual Transactions===

Buyers should prioritize complexes in outer districts with good transportation access. Sellers in areas with high tax burdens, such as Gangnam and Yongsan, should aim for quick transactions by adjusting prices. Before signing a contract, it is advisable to compare the market price presented by the agent with actual transaction cases. Additionally, one should check the conditions for balance loans and changes in acquisition tax in advance. Using such a checklist can help reduce unnecessary losses.

💡 Key Point
Focusing on outer districts for buying, adjusting prices for selling, and verifying conditions in advance are key practical strategies.

Frequently Asked Questions

Is it safe to buy now if Seoul apartment prices keep rising?

While the short-term upward trend continues, there are significant differences by region. Outer districts are rising driven by actual demand, while Gangnam and Yongsan are undergoing adjustment. Therefore, you must clearly define the timing and purpose for the specific area you are considering.

What exactly is the cap on the long-term holding special deduction?

Until now, a certain amount of tax could be deducted for long-term holdings, but starting in 2028, the deduction will not apply to the portion exceeding that amount. Therefore, even with a long holding period, tax benefits may be limited.

How do I decide whether to lower the price when selling?

You should review recent transaction volumes and local market price fluctuations with your agent. If the tax burden is high, it is common to adjust the price to an appropriate level to facilitate a quick sale.

What should I mainly look at when investing in outer districts?

You should comprehensively review transportation convenience, school district and living infrastructure development plans, and actual demand for jeonse (lump-sum deposit) and monthly rentals. These factors directly impact future value.