Seoul's applications for apartment land transaction permits have rebounded after five months, with price trends varying by region. While prices in the Gangnam area have decreased, outer districts such as Gangbuk and the southwestern regions have recorded increases of over 2%.
The Seoul city government reported on the 15th that there were 3,678 new applications for apartment land transaction permits in September. This marks a return to growth after four consecutive months of decline since April.
The number of applications in September increased by 24.1% (715 applications) compared to the previous month (2,963 applications). However, it represents a 58.7% (5,218 applications) decrease compared to April (8,896 applications).
The city attributed the increase in applications to the impact of the government's tax reform plan. Officials noted, "The easing of some burdens related to the comprehensive real estate tax, announced on September 1, may have influenced this trend."
However, they cautioned that it is difficult to conclude that the increase in applications indicates a recovery in the overall housing market or the effectiveness of the tax reform. They emphasized the need to consider potential adjustments in tax policies and lending conditions during the National Assembly's review process to assess future trends.
By region, the Gangnam area and Yongsan saw the highest increase in applications at 51.5%. The southwestern region and the Han River belt also experienced increases of 30.4% and 29.2%, respectively. The ten districts in Gangbuk saw a more modest increase of 13.0%, but they accounted for 44.8% of total applications with 1,646 applications.
In terms of overall application distribution, Gangbuk accounted for the largest share, followed by the Han River belt (21.2%), the southwestern region (19.5%), and the Gangnam area and Yongsan (14.6%).
Deferred applications by region included 69 from the seven districts in the Han River belt, 68 from the ten districts in Gangbuk, 40 from the Gangnam area and Yongsan, and 21 from the four districts in the southwestern region. The city noted, "As the scope of recognized lease renewal contracts expands, there is a possibility that applications for actual residence deferrals will increase in the future."
Application prices have risen, particularly in outer regions. In September, the average application price for apartment land transaction permits in Seoul increased by 1.43% compared to the previous month. Prices in Gangbuk and the southwestern region rose by 2.07% and 2.45%, respectively, exceeding the overall average for Seoul.
In contrast, the Gangnam area and Yongsan saw a decline of 0.32% compared to the previous month. The seven districts in the Han River belt experienced a 0.19% increase, but this was a decrease from the previous month's growth rate of 0.74%.
* This article has been translated by AI.
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