According to an analysis of apartment sales transaction data from the Ministry of Land, Infrastructure and Transport by Zigbang, the proportion of record high transactions in the metropolitan area was recorded at 9.7% in May, the lowest level this year.
The decline in the proportion of record high transactions is attributed to the dampened buying sentiment following the expansion of land transaction permit zones and stringent loan regulations implemented after the real estate measures of October 15 last year. Additionally, the upcoming expiration of the tax exemption for multiple homeowners on May 9 led to a release of some urgent sales, further impacting the decrease in record high transactions.
By region, Seoul's record high transaction proportion fell to 19.3%, down 2 percentage points from the previous month (21.3%), while Gyeonggi Province decreased from 7.7% to 7.0%. In contrast, Incheon saw a slight increase from 2.7% to 2.8%.
The proportion of record high transactions in Seoul has declined for three consecutive months, dropping from 31.3% in February to 25.1% in March, 21.3% in April, and now 19.3% in May.
The number of record high transactions has also decreased. In Seoul, the number of record high transactions exceeded 1,000 each month, but fell to 864 in May, with total transactions at 4,467, below the recent three-month average of 6,563 (February to April).
Notably, the decline in Gangnam has been pronounced. The proportion of record high transactions in Gangnam District dropped to 19.3%, a decrease of 31.1 percentage points compared to the same period last year. Seocho District recorded 33.8% (-14.3 percentage points), and Yongsan District reported 26.4% (-9.0 percentage points).
Conversely, Yeongdeungpo District (41.2%), Dongjak District (35.3%), and Dongdaemun District (31.8%) saw their proportions of record high transactions increase by around 20 percentage points or more compared to the previous year. The average transaction prices in these areas were 1.29 billion won in Yeongdeungpo, 1.5 billion won in Dongjak, and 1.11 billion won in Dongdaemun, indicating active transactions in the 1 billion to 1.5 billion won range. The relatively lower impact of loan regulations and the ongoing transition from jeonse (long-term rental) to purchase contributed to the increase in record high transactions.
Additionally, the overall proportion of record high transactions in Gyeonggi Province was 7.0%, down 0.7 percentage points from the previous month, but significant regional differences were evident.
Guri City saw a record high transaction proportion of 21.1%, an increase of 18.9 percentage points compared to the previous year, while Suji District in Yongin also rose to 19.4%, up 16.1 percentage points year-on-year.
Notably, Dongtan District in Hwaseong recorded a record high transaction proportion of 12.0%, marking six consecutive months of growth. Dongtan is considered a key residential area for the southern Gyeonggi semiconductor industry belt, housing Samsung Electronics' Hwaseong and Giheung campuses, as well as ASML's Hwaseong campus.
The real estate market in Icheon is also showing signs of activity. According to the Ministry of Land, Infrastructure and Transport's real transaction disclosure system, the total real estate transaction volume in Icheon (including apartments, multi-family dwellings, and officetels) increased by 17.7%, from an average of 626 transactions per month in the second half of last year to an average of 737 transactions from January to April this year. Additionally, the 'Icheon Lotte Castle Ferraz Sky' recorded a transaction price of 620 million won for a 84 square meter unit last June, setting a local record.
Currently, the metropolitan market is experiencing a coexistence of a wait-and-see attitude in high-priced Gangnam complexes and strong performance in areas with good access to the semiconductor industry belt and Seoul, leading to deepening polarization. Industry experts are closely monitoring whether this differentiated trend will continue following the local elections in June, depending on real estate policies, interest rates, and household debt management strategies.
* This article has been translated by AI.
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