The city of Seoul reported on the 20th that, following the expansion of the land transaction permission area (Land Transaction Zone) and monitoring for a month, both housing prices and transaction volume showed signs of easing.
The city of Seoul, after lifting the designation of the Land Transaction Zone in Jamsil, Samsung, Daechi, and Cheongdam on Feb. 13, observed a sharp rise in housing prices. Consequently, on the 24th of the following month, it reassigned the Land Transaction Zone to the three districts of Gangnam (Gangnam, Seocho, Songpa) and Yongsan. Following this, the city intensified monitoring of transaction trends and strengthened on-site inspections to block speculative demand and balloon effects.
In the second week of April, the price increase rates in the three districts of Gangnam and Yongsan were reduced compared to their peak (third week of March). In Gangnam, it decreased from 0.83% to 0.16%; in Seocho from 0.69% to 0.16%; in Songpa from 0.79% to 0.08%; and in Yongsan from 0.34% to 0.14%.
As a result of the reassignment of the Land Transaction Zone, the rise in prices in Mapo, Seongdong, and Gangdong, areas that were previously concerned about balloon effects, also decreased. Mapo saw a decline from 0.29% to 0.13%; Seongdong from 0.37% to 0.23%; and Gangdong from 0.28% to 0.09%.
Based on the Ministry of Land, Infrastructure and Transport's actual transaction disclosure data (as of April 18), when comparing transaction volumes before and after the effectiveness of the Land Transaction Zone (effective March 24), it fell from 1,797 cases (March 1-23) to 31 cases (March 24-April 18).
In adjacent areas such as Mapo, Seongdong, and Gangdong, the number of transactions also decreased from 1,389 cases before the effectiveness of the Land Transaction Zone to 397 cases afterward. However, the decline was not as significant as in the designated areas.
Since March, the city of Seoul, along with the Ministry of Land, Infrastructure and Transport and local autonomous districts, has conducted on-site inspections targeting a total of 214 brokerage offices, discovering 59 suspicious transactions that are currently under thorough investigation. The types of suspicious transactions include 25 cases of excessive borrowing funds, 11 cases of indirect gifting, 1 case of false reporting, and 22 cases of others.
There are also suspected cases of price collusion in which false information was spread through an apartment community app, claiming that a transaction had set a new record price, which the Seoul Metropolitan Government's Civil and Criminal Police Agency is currently investigating.
For one case where borrowing fund history between family members could not be verified, leading to suspicions of gift tax evasion, notification to the National Tax Service has been completed. Investigations are also underway regarding a transaction that involved using gap investment to purchase a dwelling valued at 2.9 billion won, with the entire amount of own funds of 2.8 billion won having been gifted and borrowed from the father, excluding the rental deposit of 120 million won.
Starting this week, the city of Seoul will also conduct on-site checks regarding post-usage violations, such as actual residency requirements for the targeted apartments, in collaboration with the Ministry of Land and the local autonomous district. They will visit the targeted apartments to directly verify mail, the apartment management office's residency list, vehicle registration, and more. Violators will be subject to enforcement fines of up to 10% of the actual transaction price.
Additionally, to block speculative demand, the city of Seoul has reassigned the four major areas (4.58㎢) of Apgujeong, Yeouido, Mokdong, and Seongsu, where there are issues with reconstruction and redevelopment, as Land Transaction Zones. The designation period, which was set to expire on the 26th of this month, has been extended for one year until April 26 next year.
Kim Seong-bo, the Deputy Mayor of Administrative Affairs for the city of Seoul, noted that "all means have been mobilized to block potential market confusion and speculative demand that could arise following the expansion of the land transaction zone designation, and actual effects are being observed."
He added, "We will continue to implement substantive follow-up measures without gaps while actively supporting various policies, such as expanding housing supply and strengthening market monitoring, to create an environment where actual customers can stably secure their own dwellings."