Seoul apartment sales and rental prices keep climbing as tax reform looms

Seoul's housing market has posted a seventh straight week of price gains, with the average apartment sale price rising 0.16% and the jeonse (rent‑to‑buy lease) index also up 0.16% during the week ending July 24. Over the past year, Seoul's sale price index has risen 5.74%, outpacing the national average of 1.87%, while the jeonse index has climbed 5.72% versus the national 2.69%.

Supply constraints are sharpening the upward pressure. The number of new apartments completed in Seoul this year fell to 17,210 units, a 46.8% drop from the 32,370 units finished a year earlier, marking the lowest delivery volume since 2022. Reduced jeonse inventory and tighter land‑trade‑permit zones have shifted some renters toward buying, adding to demand.

Amid the price surge, the government is expected to unveil a property‑tax reform package by the end of the month. Drafts suggest higher ownership taxes and reduced incentives for single‑owner homes, which could temper future price gains depending on how the measures are implemented.