After the reassignment of the land transaction permission zones in Seoul, the proportion of high-priced apartment transactions exceeding 1.5 billion won has sharply declined.
According to the actual transaction price system of the Ministry of Land, Infrastructure and Transport, the proportion of transactions exceeding 1.5 billion won among the reported apartment transactions (10,563 transactions) since the expansion of the land transaction permission zones in Gangnam's three districts and Yongsan on March 24 has accounted for 19.0%.
Excluding transactions (385 transactions) purchased by public institutions, the proportion of those exceeding 1.5 billion won decreased by 14 percentage points from 33.0%, which was the proportion until March 23, when the Gangnam land transaction permission zone was temporarily lifted.
The substantial decrease in high-priced apartment transactions exceeding 1.5 billion won is believed to be influenced by the significant reduction in transactions in these areas, where high-priced apartments are concentrated, as the permission zones expanded to encompass all apartments in Gangnam's three districts and Yongsan.
In the case of Gangnam, the transaction volume that reached 597 transactions in February and 835 transactions in March plummeted to 106 transactions in April, and although there was a slight increase in transactions in May, the number of reported transactions as of that day remained at 105. The reporting deadline for apartments traded in May is until the end of this month.
In Songpa District, the transaction volume decreased significantly from 720 transactions in February and 903 transactions in March to 126 transactions in April, and by that day in May, the number of reported transactions stood at 122.
By transaction value, those exceeding 1.5 billion won and up to 3 billion won accounted for 25.8% of the total transaction volume until the temporary lifting of the permission zones in March but decreased to 16.3% after the expansion of the permission zones, a drop of about 10 percentage points.
The proportion of transactions exceeding 3 billion won and up to 5 billion won decreased from 6.0% to 2.2%, while those exceeding 5 billion won dropped from 1.2% to 0.6%.
As the high-priced apartment transactions decreased, the proportion of transactions below 1.5 billion won increased from 67% to 81.0%. The proportion of transactions between 900 million won and 1.5 billion won showed little difference, moving from 32.2% to 33.4%, but the proportion of mid-priced apartments below 900 million won expanded from 20.6% to 27.4%, and those below 600 million won increased from 14.2% to 20.1%.