Four in 10 Buyers of Gangnam Homes Sold Stocks to Make the Purchase

Four in 10 buyers of apartments in the Gangnam 3 Districts (Gangnam-gu, Seocho-gu, and Songpa-gu) from January to April this year were residents of those areas, a survey showed.
According to KREB on the 25th, apartment transactions in Gangnam-gu, Seocho-gu, and Songpa District totaled 2,986 from January to April. Of those, local residents accounted for 42.5% of purchases. The figure refers to the share bought by residents of Gangnam-gu, Seocho-gu, and Songpa District, respectively.
By district, Gangnam-gu posted the highest share of local resident buyers at 44.6%. Seocho-gu followed at 44.2%, while Songpa District stood at 40.5%.
The share of local resident buyers in the Gangnam 3 Districts rose sharply during periods of steep home-price gains. By year, the figure was 39.7% in 2020, failing to reach 40%. It then jumped to 46.3% in 2021 and surged to 58.5% in 2022. Apartment prices in Seoul began soaring in 2021 and peaked in 2022.
As home prices fell in 2023 and 2024, the share dropped back below 40% to 36.6% and 38.2%, respectively. But it rose to 41.0% last year and has climbed further to 42.5% this year, returning to levels seen during earlier price upswings.
Ko Jun-seok, a professor at Yonsei University, said, "Apartment prices in the Gangnam 3 Districts began rebounding in earnest in the second half of last year, and tighter lending rules are making it difficult for anyone other than local asset holders to enter the market." He added, "Prices have risen so much that even wealthy buyers from other regions are finding it hard to purchase homes in the Gangnam 3 Districts."
Meanwhile, stock and bond sale proceeds used to buy homes in the Gangnam 3 Districts had exceeded 100 billion won as of April this year. According to financing plans submitted to the Ministry of Land, Infrastructure and Transport by the office of Kim Jong-yang of the People Power Party, the amounts were 370.6 billion won in Gangnam-gu, 353.1 billion won in Songpa District, and 290.3 billion won in Seocho-gu. The share of total transaction value in the Gangnam 3 Districts during the period also reached 11.6%.
From 2021 to 2025, stock and bond sale proceeds accounted for just 4.5% on average. As the stock market surged this year, more capital flowed into the housing market. Coin sale proceeds flowing into the Gangnam 3 Districts housing market also reached 18 billion won.
Kim Gwang-seok, CEO of Real House, said, "Because of tighter lending, buyers of high-priced homes are covering the shortfall with financial assets."
ljb@fnnews.com Lee Jong-bae Reporter