"Songpa by the 15th, Seocho by the 16th" Less than 10 days left to apply for land transaction permits

As the fire-sale listings that flooded the market ahead of the May 9 end of the temporary suspension of heavier capital gains tax on multi-homeowners have been absorbed, the apartment sales market has entered a lull. Seoul district offices have begun announcing deadline dates for land transaction permit applications so that sellers can still benefit from the temporary exemption from the heavier capital gains tax.
■ "Everything that could sell has sold" — quiet brokerages
According to industry sources on the 5th, once it was confirmed early this year that the temporary suspension of the heavier capital gains tax would end, sales transactions surged in January and February. Recently, however, the market appears to be taking a breather.
In Nowon District, where transaction volume spiked, listings from owners eager to dispose of properties have largely been sold, leaving mainly tenant-occupied units and other properties that are difficult to move into immediately. A licensed real estate agent based in Nowon District said, "Most of the fire-sale listings among multi-homeowners were traded in February," adding, "Transaction volume is not that high at the moment, so the market is in a lull."
New purchase inquiries have also dropped noticeably. A broker near Sanggye Jugong Apartment Complex noted, "At the peak, many young, home-less couples came by and spent the entire weekend just viewing apartments, but now it is quiet," and added, "With the remaining listings, it is mostly a game of chicken between sellers and buyers."
Brokerages in the Gangnam area also say the capital gains tax issue has effectively run its course.
A broker handling Heliocity, the largest complex in Songpa District, commented, "You can assume there will be no additional fire-sale listings from now on," and stressed, "There is no more time left." A broker in the Jamsil area likewise remarked, "With expectations that prices will rebound after May 9, homeowners believe the current level is the bottom."
■ District offices announce their own application deadlines
Meanwhile, district offices are each announcing their own deadlines for land transaction permit applications and preparing accordingly. Gangbuk-gu Office posted a notice on its website saying, "If possible, please complete your application by April 13," while Jungnang-gu Office guided residents to "submit land transaction contract permit applications related to the temporary suspension of owner-occupancy obligations by April 17."
Only if the main sales contract is signed by May 9 will multi-homeowners be exempt from the heavier capital gains tax, and buyers of tenant-occupied units will be able to benefit from the grace period on the move-in requirement. The exact dates differ by district, but other district offices are also telling residents, for example, "If possible, you should complete your application by the 15th" (Songpa-gu Office) and "You need to apply by the 16th" (Seocho-gu Office), according to officials.
According to the Seoul Real Estate Information Plaza, Nowon District issued 231 permits this week. On April 2 alone, the district approved 85 permits.
An official at Nowon District Office said, "Two people were working in the department, with one person assisting, but recently we increased the staff to five," adding, "Our policy is to deploy as many people as possible to review the applications received." This week, 163 permits were issued in Songpa District, 106 in Yeongdeungpo District, 102 in Gangnam District, and 93 in Gangdong District, illustrating how busy district officials are across the city.
ming@fnnews.com Reporter Jeon Min-gyeong, Reporter Kwon Jun-ho, Reporter Choi A-young