Seoul’s apartment market is showing a broadening sales freeze as a 2026 tax revision targeting expensive homes increases distressed listings, while tighter lending and higher interest rates keep buyers on the sidelines. Apartment transactions fell 36.6% to 3,466 in August from 5,465 in July, according to the Ministry of Land, Infrastructure and Transport’s actual transaction price disclosure system released on the 29th. August transactions were less than half the more than 8,000 monthly deals recorded in April and May. The KB Leading Apartment 50 index, which tracks the 50 apartment complexes with the largest combined market value, fell 0.22% from the previous month in KB Real Estate’s September national housing price survey, ending a four-month rise, while Gangnam District apartment prices declined 0.30%. Weekly Korea Real Estate Board data showed prices falling for six consecutive weeks in Gangnam and Seocho, while Songpa extended its decline to three weeks. September transactions stood at 1,387 but can rise because deals must be reported within 30 days of signing. Land transaction permit applications, an early indicator of activity, fell 65.1% to 3,547 in August from 10,165 in April and stood at 3,853 in September as of the previous day, limiting prospects for a sharp rebound. Outer districts recorded the most applications, while applications across the three Gangnam districts fell 70.1% from April. Recent sales show discounts of hundreds of millions of won, and brokers expect the market to remain weak after the supply of distressed listings is exhausted.