"Do you have a house in Seongsu-dong" Text message received... Surprised to see the sender

[Financial News] #. "This is Seocho-gu real estate. We will gladly handle the sale and lease of apartments in Seongdong-gu." "This is Gangnam-gu real estate. We will find tenants at a good price. Please contact us." Mr. A, who owns an apartment in Seongsu-dong, Seongdong-gu, Seoul, recently received such text messages. He was puzzled by the active promotion not only from nearby real estate agencies but also from other regions.
According to the industry on the 15th, real estate agencies located in Gangnam and Yongsan, which were expanded and re-designated as land transaction permission zones on March 24, are actively seeking work due to various regulations that have restricted transactions.
Based on the Ministry of Land, Infrastructure and Transport's real transaction disclosure system, an examination of apartment sales transactions in Seongsu-dong 1-ga and 2-ga, Seongdong-gu, Seoul, in the first half of this year showed that transactions involving real estate agencies located in Gangnam-gu, Seocho-gu, and Yongsan-gu were △2 in January △4 in February △8 in March △2 in April △9 in May △11 in June, showing an overall upward trend.
In particular, in June, the proportion of sales transactions through agencies from other regions (Gangnam, Seocho, Yongsan) accounted for 12.2% (11 out of 90 transactions) of the total transactions. In May, 9 out of 77 transactions involved agencies from those regions, with a proportion of 11.6% (9 out of 77 transactions). If rental transactions are added, the transaction volume through agencies from other regions is expected to be even higher.
Among these transactions, there were instances of 'exclusive brokerage' rather than 'joint brokerage' where real estate offices from two regions shared property information to conclude contracts. In January, Trimaje (21st), in February, Acro Seoul Forest (4th), Seoul Forest I-Park Riverfore (8th), Galleria Foret (29th) transactions were conducted exclusively by Gangnam-gu agencies. In March, Seocho-gu agencies exclusively brokered the Dong-A Apartments, which are undergoing reconstruction, and in May, three transactions were exclusively brokered by Gangnam-gu agencies.
An industry insider said, "It is common for people living in Seocho or Gangnam to use joint brokerage when moving to another region, but exclusive brokerage and sales are special cases," adding, "As the demand may shift to Ma-Yong-Seong (Mapo, Yongsan, Seongdong) after the re-designation of the land transaction permission zone, Gangnam agencies may promote with Gangnam customers in mind."
A real estate agent in Gangnam-gu also said, "When the government announces regulatory policies, they have a significant impact for at least a month or two," adding, "Especially when the land transaction permission zone expansion was announced, customer visits suddenly stopped, so some agencies are trying to expand their activity range."
In fact, during the one month (February 12 to March 24) when the land transaction permission zone was lifted, apartment transactions in Gangnam 3-gu and Yongsan-gu surged, but after March 24, transactions plummeted again. The March transaction volume of the four autonomous districts was 2,347, but the May transaction volume was 999, a decrease of 57.44%. By autonomous district: △Gangnam-gu, 906 in March → 246 in May △Seocho-gu, 470 in March → 399 in May △Yongsan-gu, 247 in March → 83 in May.
In Gangdong-gu and Dongjak-gu, which are part of the greater Gangnam area but not restricted by the land transaction permission zone, transactions of major apartments such as Goduk Gracium and Acro Riverheim were being conducted by agencies located in Gangnam, Seocho, and Yongsan.
Meanwhile, according to the Association of Real Estate Agents, as of the end of May, the number of licensed real estate agents operating offices was 111,123, the lowest in four years and five months. More than 1,000 agents have been closing or suspending operations every month from February to May. Amid the long-term stagnation of the real estate market, the 6.27 loan regulation and the implementation of the 3-stage total debt service ratio (DSR) stress test are expected to continue to dampen the brokerage industry atmosphere for the time being. ming@fnnews.com Jeon Min-kyung Reporter