On May 8, near the Eunma Apartment in Daechi-dong, Gangnam District, the atmosphere was unexpectedly calm just one day before the expiration of the capital gains tax exemption for multiple homeowners. While some property listings were visible in the windows of real estate agencies, inquiries and foot traffic were sparse.
The market, which had previously buzzed with hopes for last-minute transactions, appeared to have entered a wait-and-see phase following the depletion of urgent sales. The owner of a real estate agency near Eunma Apartment stated, "Most urgent sales were completed in April. Now, only homeowners looking to raise their asking prices remain. Once the district office closes tomorrow, pricing will become arbitrary." He added that homeowners are reluctant to mix their properties with those aimed at avoiding capital gains tax, leading to a trend of listing properties only after May 9.
A representative from a nearby agency near Hanbomido Apartment echoed this sentiment, saying, "Almost all properties that were likely to sell have already been transacted. There won't be many last-minute urgent sales now."
The government had kept the door open for multiple homeowners until the last minute. As long as land transaction permit applications were submitted by May 9, homeowners could avoid the tax even if the final payments and registrations were completed later. On Saturday, May 9, district offices in 25 areas of Seoul and 12 cities in Gyeonggi Province accepted these applications through special shifts. The deadline for final payments can be extended up to six months, providing a last chance to avoid a tax burden.
However, the Gangnam District Office was relatively quiet on that day. A separate area for land transaction permits was set up within the Real Estate Information Division, but only civil servants handling inquiries were present; no legal representatives or applicants were visible. A representative from a law office in Nonhyeon-dong, Gangnam, noted, "We were busy with land transaction permit applications a few weeks ago, but that's not the case now. While there may be some dramatic price adjustments in the coming days, it doesn't seem like the application window will suddenly become crowded."
The changes in the market due to the depletion of urgent sales and the withdrawal of listings are also reflected in the numbers. According to real estate big data firm Asil, as of that day, the number of apartment listings in Seoul stood at 69,175, a decrease of over 10% from a month earlier (77,010). This marks the first time the number of listings has dropped below 70,000 since February 24 (68,564).
In the past month, the area with the largest decrease in listings was Guro District, which saw a drop from 2,772 to 2,283, a 17.7% decline, leading the trend of property withdrawal. Other areas in the northern part of the city, such as Gangbuk (-16.0%), Seongbuk (-15.8%), and Jungnang (-15.8%), also experienced reductions exceeding 15%. This trend is attributed to the completion of last-minute transactions to benefit from tax incentives, along with multiple homeowners withdrawing their listings as they missed the opportunity to sell.
As listings have dwindled, localized price increases have begun to emerge. In the outskirts, rising prices are further pressured by actual demand due to instability in rental markets. According to the Korea Real Estate Agency, in the first week of May, the average apartment sale price in Seoul rose by 0.15% compared to the previous week, maintaining a strong performance above the flat range for three consecutive weeks. Areas with significant listing reductions, such as Guro (0.24%), Seongbuk (0.27%), and Gangbuk (0.25%), have outpaced the overall price increase in Seoul, solidifying the market's support level.
A representative from a real estate agency in Sangye-dong, Nowon District, stated, "While urgent sales in large complexes with mid-priced properties have already been completed, steady demand from newlyweds and those seeking to move out due to a shortage of rental properties has led to continued inquiries and transactions, pushing prices back to early-year levels since last week."
* This article has been translated by AI.
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