Multi-homeowners turn to selling as “deadline” nears... Seoul apartment listings top 80,000 [Seoul flooded with properties]

With the deadline for the reinstatement of heavier capital gains tax on multi-homeowners about a month away, the number of apartment listings in Seoul has exceeded 80,000 for the first time this year. It is the first time since June 11 last year, when listings reached 80,710, roughly nine months ago. The increase has been particularly pronounced in the Gangnam 3 Districts (Gangnam, Seocho and Songpa) and the Han River Belt (Seongdong, Gwangjin, Gangdong and Dongjak districts).
According to real estate platform Asil on the 23rd, the number of apartment listings in Seoul stood at 80,080 as of the 21st. Compared with 57,001 listings on January 1, the beginning of this year, the figure has jumped 40.5% in just two and a half months.
The surge in listings has been led by the Gangnam 3 Districts. Gangnam District had the most apartment listings at 10,966, followed by Seocho District with 9,543, close to the 10,000 mark. In Gangnam District, listings surpassed 10,000 for the first time this year on the 11th, reaching 10,016, and have remained above that level through the 23rd. Songpa District recorded 5,969 listings, the highest level so far this year. In terms of growth rates compared with the start of the year, Songpa was up 78.1%, Seocho 63.5% and Gangnam 54%.
Listings in the Han River Belt have also jumped across the board. Four districts have seen increases of more than 65% compared with early January. Seongdong District’s apartment listings rose from 1,215 on January 1 to 2,349 on March 21, a 93.3% surge, giving it the highest growth rate. Over the same period, Gwangjin District climbed from 784 to 1,336 listings, ranking second with 70.4%. Gangdong District rose from 2,653 to 4,511 (70%), placing third, and Dongjak District from 1,279 to 2,119 (65.7%), placing fourth. Listings in Mapo District and Yongsan District increased by 55% and 50%, respectively.
Apartment listing prices in Seoul continue to rise because the return of heavier capital gains tax on multi-homeowners is drawing near, prompting more owners to put their properties on the market. The government has set May 10 as the date when the higher tax will resume, meaning contracts must be completed by the 9th. Park Jung-hwan, Chief Certified Tax Accountant at Yulje Tax Accounting, explained, "It takes about 15 business days to obtain a Land Transaction Permit Certificate," adding, "In practical terms, it means contracts need to be signed by at least mid-April."
Some analysts say multi-homeowners are increasingly shifting from holding out to deciding to sell, and that this will likely keep listings on an upward trend. Given how sharply listings have risen recently, there may be some short-term adjustment. However, many expect selling pressure to persist and the number of listings to peak in early to mid-April.
kjh0109@fnnews.com Kwon Jun-ho Reporter