Apartment prices in Seoul's outer districts remain strong despite the imminent announcement of a real-estate tax reform [1].

This trend indicates a decoupling of the outer-district market from the cautious sentiment affecting the city's core. While buyers in premium areas wait for tax clarity, those seeking mid-to-low priced housing continue to purchase, sustaining price growth in the periphery.

Recent transaction data from July 20 shows significant activity in these neighborhoods [1]. In Guro-gu's Sin-dori-dong, an 84-square-meter apartment sold for 14.95 billion KRW [1]. A smaller 59-square-meter unit in the same district sold for 14.1 billion KRW [1], reflecting a price increase of 3.3 billion KRW over the past year [1].

Overall apartment prices in Seoul have risen 6.29% this year [1]. However, growth in outer districts has outpaced the city average. Seongbuk-gu, for example, saw a price increase of 10.31% this year [1]. The 10 districts with the largest price gains are all located outside the Gangnam area, including Guro-gu, Gangseo-gu, and Seodaemun-gu [1].

Market analysts attribute this resilience to the practice of "young-kkeul," or leveraged buying, where purchasers maximize loans to enter the market at more affordable price points [1]. This demand is further evidenced by a sharp decline in available listings, with Jungnang-gu recording the largest drop in listings compared to six months ago [1].

"Real estate tax reform announcement is imminent and the Seoul real estate market is in a wait-and-see mood, but apartment prices in the outer areas of Seoul, where mid-to-low priced houses are concentrated, are still strong," an anchor for YTN News said [1].

Experts believe the upcoming policy changes will not significantly alter the trajectory of these specific neighborhoods. An anchor for YTN News said there is a high expectation that the tax reform will not directly hit price levels in Seoul's outer districts [1].

“Apartment prices in Seoul's outer districts remain strong despite the imminent announcement of a real-estate tax reform.”

The resilience of Seoul's outer-district housing market suggests that demand for entry-level and mid-tier housing is currently driven more by necessity and leverage than by speculative investment in luxury assets. Because these properties fall below the typical thresholds targeted by high-end tax reforms, buyers perceive them as safe havens, which may lead to a widening price gap between the city's core and its periphery.