"Gifting Now Could Be a Loss"... Experts Focus on the 'Housing Price Trend'

[Financial News] The number of applications to register gifted ownership of collective buildings in Seoul in August fell to its lowest level in nine months. The decline was particularly pronounced in areas concentrated with high-priced homes, including Seocho, Gangnam and Yongsan. Market observers attribute the drop to the exhaustion of a substantial portion of early gifting demand, combined with a wait-and-see sentiment over tax-system changes and housing-price trends.
According to the Court Registration Information Plaza on the 7th, the number of applications in August to register gifted ownership of collective buildings in Seoul—including apartments, multi-family homes, row houses and officetels—stood at 766, down 14.8% from 899 in the previous month. This was the lowest figure in nine months, since November 2025, when the number was 717.
By district, the decline was particularly pronounced in areas with many high-priced homes, including the Gangnam area and Yongsan. Applications to register gifted ownership in Seocho District fell 62.9%, from 97 in July to 36 in August. Gangnam-gu recorded a 36.7% decrease, from 90 to 57, while Yongsan District saw a 21.9% decline, from 32 to 25. The decreases were also substantial in the northwest, including Mapo District (69.1%) and Eunpyeong District (30.2%), and in the southwest, including Guro District (32.4%), Gwanak District (32.3%) and Yangcheon-gu (30.0%).
Songpa District, however, saw applications increase 40.4% over the same period, from 57 to 80. Applications also rose in some eastern and northeastern areas, including Seongdong District (208.3%), Gwangjin District (51.1%), Gangbuk District (21.7%) and Nowon District (20.0%).
Gifting of collective buildings in Seoul began to increase late last year. Demand surged after the October 15 Real Estate Measures expanded the areas subject to higher capital gains tax rates to all of Seoul, raising concerns about the tax burden. After the measures expanded the designated adjustment-target areas to all of Seoul, applications to register gifted ownership rose 47.0%, from 717 in November to 1,054 in December, surpassing 1,000.
This year, gifting demand accelerated further ahead of the May 9 expiration of the grace period on higher capital gains tax rates for owners of multiple homes. Applications rose from 785 in January and 903 in February to 1,387 in March, then reached a peak of 2,164 in April.
Market analysts say the decline in gifting applications reflects the exhaustion of a substantial portion of the gifting demand that had continued since late last year. Their analysis is that gifts were made first, particularly by families in which the children receiving homes had secured the cash needed to pay gift and acquisition taxes.
Recent adjustments in the prices of high-priced homes are also cited as a factor delaying the timing of gifts. Gift tax is calculated based on the value of the home at the time of the gift. If housing prices fall further, waiting to observe price trends could be more advantageous in terms of the tax burden. In particular, because June 1—the property-tax assessment date—has already passed, some demand may be waiting until next year's assessment date rather than rushing to make gifts immediately.
Woo Byung-tak, an expert committee member at Shinhan Premier Pathfinder, said, "Those who were able to move early can be considered to have already completed a substantial portion of their gifting. The rest are highly likely to adjust the timing of their gifts while watching whether the proposed tax-system changes are finalized and how high-priced home prices develop."
[email protected] Choi Ah-young Reporter