After the reassignment of land transaction permission zones (land transaction zones), the average apartment sale price in Seoul plummeted, but it appears that some areas, such as Gangnam District, continued to see an upward trend.
On the 26th, real estate platform Zigbang analyzed the average sale prices in 25 autonomous districts of Seoul from March 24, when the land transaction zone was reassigned, to this month’s 1st, based on the Ministry of Land, Infrastructure and Transport's real transaction registration system, and found that Gangnam District had the highest sale price at 4.3 billion won.
This reflects a 61.9% increase compared to the average transaction price of 2.66 billion won during the period when the land transaction zone was temporarily lifted from Feb. 12 to March 23. It is also more than 60% higher compared to the average transaction price of 2.69 billion won from Jan. 4 to Feb. 11, before the land transaction zone was lifted.
Yangcheon District also rose by 7.8% to 1.42 billion won compared to the temporary lifting period (1.32 billion won), and Gangbuk District (6.16 million won during the lifting period to 6.61 million won after reassignment) saw a 7.3% increase.
In addition, Gwanak District (7.78 million won to 8.02 million won, up 3.1%) and Dobong District (5.21 million won to 5.34 million won, up 2.3%) recorded higher growth rates in transactions compared to the time the land transaction zone was lifted.
In contrast, the average transaction price of 1.11 billion won for all of Seoul after the land transaction zone was lifted dropped by 26.1% compared to the lifting period's 1.49 billion won.
Seocho District decreased significantly from 2.9 billion won during the lifting period to 2.21 billion won now. Yongsan District is also currently at 2.2 billion won, which is lower than before the lifting (2.47 billion won) and during the lifting period (2.36 billion won).
The rise in transactions in Gangnam and Yangcheon districts is analyzed as a result of the reassignment of land transaction zones acting as a boon. It is noted that as prices for newly built apartments in Seocho and Songpa districts skyrocketed during the lifting period, the price competitiveness of reconstruction complexes in the Gangnam area became prominent.
A spokesperson for Zigbang noted, “There were originally no benefits from lifting the land transaction zone in areas like Apgujeong-dong,” and added, “Transactions are taking place as visibility and scarcity of projects in high-priced reconstruction complexes in Mokdong and Yeouido, led by Apgujeong, become highlighted.”