The ‘one good home’ remained: 8 out of 10 apartment transactions in Seoul were for homes priced below 1.5 billion won

\r\n
[Financial News] More than 80% of apartments sold in Seoul from February, when the end of the heavier capital gains tax on multi-homeowners was announced, through the 17th were priced at 1.5 billion won or less.
According to the Ministry of Land, Infrastructure and Transport's real transaction price system on the 17th, 81.6% of apartment sales contracts in Seoul reported from February through the 16th, excluding public institution transactions and canceled deals, were for homes priced at 1.5 billion won or less. That was 3.4 percentage points higher than the 78.2% recorded in the previous three months, from November last year through January this year.
The trend appears to reflect a combination of factors: loan restrictions have increased transactions in the mid- to lower-priced segment, while multi-homeowners have started reducing the number of homes they own by selling off cheaper properties outside Gangnam before higher-priced ones.
Earlier, the October 15 housing measures placed all of Seoul in a land transaction permit zone and a regulated area. As a result, mortgage limits were reduced to 600 million won for homes priced at 1.5 billion won or less, 400 million won for homes priced above 1.5 billion won and up to 2.5 billion won, and 200 million won for homes above 2.5 billion won.
Among apartments priced at 1.5 billion won or less, the share of homes priced at 600 million won or less rose from 20.7% between November last year and January this year to 23.6% between February and May. Over the same period, transactions in the 600 million won to 900 million won range also increased, from 26.3% to 28.7%.
As transactions shifted toward mid- and lower-priced apartments, the average apartment price in Seoul also fell. The average transaction price for apartment in Seoul reported from February through May this year stood at 1.09846 billion won, about 80 million won lower than the previous three-month average of 1.18834 billion won.
Meanwhile, land transaction permit applications filed across Seoul's 25 districts from January 23, when the president mentioned ending the heavier capital gains tax on multi-homeowners, through last weekend, when the grace period was set to expire, totaled 29,655. By district, Nowon District had the most with 3,507, followed by Gangseo District, Seoul with 1,975, Songpa District with 1,916, and Seongbuk District with 1,836. Gangnam District and Seocho District recorded just 1,341 and 1,013, respectively.
After the heavier capital gains tax on multi-homeowners took effect on the 10th, the number of land transaction permit applications for apartments in Seoul dropped sharply. In Nowon District, applications averaged about 35 a day in April and May, but that figure fell to the low teens by midmonth. Gangnam District, which had been logging 17 to 23 applications a day, also plunged to single digits.
Listings also declined. According to Asil, the number of apartment listings in Seoul fell by more than 5,000, from 68,495 on the day the grace period ended to 63,360 as of the 17th.
act@fnnews.com Choi A-young Reporter