The number of properties in Songpa and Seocho districts of Seoul has dropped by 30% over the past three months. It appears that demand for switching properties and investment from outside Seoul has concentrated during the period when the land trading permit system of Seoul was lifted.
According to the real estate big data platform AHSIL on the 18th, the number of transactions in Songpa district decreased by 29.0% compared to three months ago as of the 15th. The number of properties fell from 6,854 to 4,867. Similarly, the number of properties in Seocho district decreased from 7,916 to 5,664, a reduction of 28.5%. Yongsan district also saw a 22.6% drop over three months, while Seongdong district decreased by 19.0%, indicating a significant decline in properties across major areas of Seoul.
During this period, the land trading permit system of Seoul was lifted for about a month. The city lifted the permit system designated for Jamsil-dong in Songpa district, Samseong-dong in Gangnam district, Daechi-dong, and Cheongdam-dong on February 11, and then expanded the reassignment to all of the three Gangnam districts and Yongsan district on March 23. When designated as a land trading permit area, a two-year actual residence is required, and gap investments are not allowed.
As the land trading permit was temporarily lifted, the number of apartment transactions in Seoul surged. According to the Seoul Real Estate Information Plaza, the number of apartment transactions, which hovered around 3,000 until January, skyrocketed to 6,550 in February and 9,952 in March. By April, the number of transactions recorded as of this date had reached 4,683.
During the period when the land trading permit was lifted, investment from outside Seoul also intensified. According to the Korea Real Estate Board, the number of apartments bought by outsiders in Seoul from January to March was 4,127. This included 803 in January, 1,193 in February, and 2,131 in March. The number 2,131 in March was the highest in eight months since last July's 2,256. By region, Gangnam district had the most with 205, followed by Songpa district with 164 and Seocho district with 96.
Ham Young-jin, head of the real estate research lab at Woori Bank, noted, "The lifting of the land trading permit led to a concentration of transactions in February and March," adding that "considering expectations for interest rate cuts, supply scarcity, and pending purchase demand, there is a passive impact on sellers' willingness to list their properties."