In the Seoul apartment market, transactions for properties priced below 1.5 billion won now account for over 80% of sales, with rapid increases in transactions in outer districts such as Nowon, Dobong, and Gangbuk. This shift is attributed to the tightening of loan regulations and the designation of the entire city as a regulated area following the government's October 15 measures last year, which lowered the entry barrier for mid-priced apartments. Additionally, the end of the capital gains tax exemption for multiple homeowners has led to an increase in listings outside of Gangnam, further boosting transactions in these areas.
According to the Ministry of Land, Infrastructure and Transport's real transaction disclosure system, from February to May 16 of this year, 81.6% of reported apartment sales in Seoul were for properties priced below 1.5 billion won. This marks a 3 percentage point increase from the previous three months, where the figure stood at 78.2% from November to January.
The increase in demand for mid-priced apartments, which can secure loans of up to 600 million won, is seen as a response to the significant reduction in actual borrowing capacity for high-priced homes following the October 15 measures. Furthermore, the announcement by President Lee Jae-myung on January 23 regarding the end of the capital gains tax exemption for multiple homeowners has also influenced the market. Following this announcement, listings on the real estate platform Asil surged from 56,219 at the end of January to 80,080 by March 21, a jump of approximately 42.4%.
It appears that multiple homeowners are increasingly selling their mid-priced properties outside of Gangnam, where the burden of disposal is relatively lower, contributing to the rise in transactions in these outer districts.
In terms of price brackets, the proportion of transactions below 600 million won increased from 20.7% between November and January to 23.6% from February to May. Similarly, the share of transactions between 600 million and 900 million won rose from 26.3% to 28.7% during the same period.
Conversely, the share of transactions priced between 900 million and 1.5 billion won decreased from 31.2% to 29.2%. The proportion of transactions between 1.5 billion and 2.5 billion won also fell from 15.1% to 13.2%, while those exceeding 2.5 billion won dropped from 6.0% to 4.7%.
As the share of mid-priced apartment transactions increases, the average transaction price for apartments in Seoul has also declined. From February to May, the average transaction price was 1.09846 billion won, down approximately 80 million won from the previous three-month average of 1.18834 billion won. This suggests that while the market is not necessarily reviving as a whole, the focus of transactions is shifting toward outer districts and mid-priced properties.
The increase in transactions in outer districts, particularly Nowon, Dobong, and Gangbuk, is notable. According to the real estate platform Asil, from February to May 17, the top-selling apartment complex in Seoul was 'SK Bukhan Mountain City' in Mia-dong, Gangbuk District, with a total of 115 transactions. Following closely was 'Hanshin-Hanjin Apartments' in Donam-dong, Seongbuk District, with 90 transactions, and 'Sangye Jugong Complex 6' in Sangye-dong, Nowon District, also ranked among the top sellers.
* This article has been translated by AI.
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