Last month, as the transaction volume in the apartment market in Seoul and the surrounding metropolitan area slightly slowed, it was found that high-priced complexes such as in Gangnam-gu, Seoul, and Gwacheon-si, Gyeonggi Province, recorded a high percentage of reported price transactions.
As a result of analyzing apartment sales transaction data registered in the Ministry of Land, Infrastructure and Transport's real transaction price disclosure system, it was found that the transaction volume in the metropolitan area last month was 13,423 cases, showing a decrease of about 47% compared to the previous month (25,456 cases). Although the transaction volume decreased, more than half of the total transactions in Gangnam-gu, Seoul (59.0%) and Gwacheon-si, Gyeonggi Province (62.5%) were reported as either the same or exceeding the previous highest price.
In contrast, the percentage of reported price transactions in the entire metropolitan area decreased from 9.10% in March to 5.97% in April, with slight declines also seen in Seoul (18.75% to 15.44%), Incheon (2.97% to 2.55%), and Gyeonggi Province (3.75% to 3.08%). Zigbang noted that the impact of observation sentiment regarding major policy and institutional changes, such as the reassignment of land transaction permit areas and the introduction of the stress debt service ratio phase 3 scheduled for July, has led to a contraction in transactions.
Examining the percentage of reported price transactions by region in Seoul, significant differences between major areas were clearly observed. In Gangnam-gu, 59.0% of total transactions were reported prices, surpassing half for the first time since April 2022 (53.7%).
Yongsan-gu maintained a high percentage of reported price transactions at 46.2% due to the combined expectations for high-end residential areas and development. Yangcheon-gu recorded a significant increase of over 18 percentage points to 44.0% compared to the previous month (25.9%), reflecting expectations for the reconstruction of Mokdong New Town. Seocho-gu slightly decreased to 33.3% from the previous month, but it maintained a high percentage focused on high-priced complexes. Additionally, areas along the Han River and major urban centers, such as Songpa-gu (27.9%), Mapo-gu (26.0%), Gangdong-gu (22.8%), and Seongdong-gu (22.2%), each showed a percentage of reported price transactions above 20%.
In contrast, outer regions showed a contrasting trend. Dobong-gu (0.9%), Gangbuk-gu (1.5%), and Nowon-gu (1.9%) displayed low reported price percentages around 1%.
In Gyeonggi Province, Gwacheon-si had the highest percentage of reported price transactions, with 62.5% of the total transactions in April recorded as reported prices. The transactions were concentrated around major high-priced complexes such as Gwacheon Prugio Summit, Raemian Chur, and Gwacheon Jang. Zigbang explained that similar to Seoul's Gangnam, demand is being focused on high-end residential areas.
Bundang-gu in Seongnam City (15.7%) continued to see reported price transactions centered around mid-to-large-sized apartments in Pangyo Baekhyun-dong and remodeling projects in Sunae and Seo-hyeon-dong within the first generation new towns. The connectivity to Seoul and development expectations are causing selective buying to flow into areas with high locational preference.
In Incheon, a general decrease in transaction volume and continued observation sentiment persists. However, Michuhol-gu had the highest reported price transaction percentage in Incheon at 7.5% in April. The influx of demand centered around newly built complexes supplied through redevelopment projects and brand apartments located near stations has resulted in price rebounds in some complexes.
A Zigbang official noted, "Although transaction volumes have decreased, buyers who had been observing the market are selectively purchasing in preferred areas, and reported price transactions are continuing. Especially in high-end residences with high locational competitiveness, latent demand is still effectively acting to drive price recovery."
He added, "The increasing transactions in some high-priced complexes serve as a benchmark affecting market expectations, and it is interpreted that they indirectly influence the price formation of surrounding complexes through the so-called 'anchoring effect.' Going forward, amid observation sentiment regarding external variables such as interest rates and policies, a trend where demand fluctuates based on the location and quality of individual complexes is expected to continue for the time being."