“Have all those who were going to do it already done so?” Gifts of multi-unit buildings in Seoul hit a 14-month low

[Financial News] Gifts of multi-unit buildings in Seoul have fallen to their lowest level in 14 months. After gifts surged in April this year ahead of the end of the grace period for the heavy capital gains tax surcharge, much of the demand to sell or gift properties appears to have acted preemptively, cooling gift activity rapidly.
According to real estate data on applications for registration of ownership transfers by gift for multi-unit buildings from the Court Registry Information Plaza on the 3rd, there were 700 applications for gifts in Seoul in October. This was the lowest figure in 14 months, since 645 in August 2025.
Gifts of multi-unit buildings in Seoul rose rapidly through April this year. Applications increased from 785 in January to 903 in February and 1,387 in March, then surged to 2,164 in April. They subsequently fell from 1,498 in May to 909 in June, 899 in July, 770 in August, 746 in September and 700 in October.
The decline in gifts was particularly pronounced even in Seoul’s core areas. Applications for gifts of multi-unit buildings in the three Gangnam districts (Gangnam, Seocho and Songpa) fell 63.9%, from 446 in April to 161 in October. In the seven Han River Belt districts—Gwangjin, Seongdong, Mapo, Dongjak, Yangcheon, Yeongdeungpo and Gangdong—the figure dropped 73.0% over the same period, from 699 to 189. Yongsan District also saw a sharp 87.7% decline, from 114 in April to 14 in October.
The increase in gift transactions from the start of this year through April was driven by concentrated demand to reduce tax burdens ahead of the end of the grace period on the capital gains tax surcharge for multi-homeowners. However, market observers believe that multi-homeowners who planned to sell their homes or gift them to their children acted before the policy took effect, leaving no further gifts afterward.
A breakdown by age shows a clear difference from the first half of the year. In April, when gifts peaked, the transfer of assets to younger generations of children was particularly notable. Over the past six months, gifts have fallen rapidly, especially among younger recipients. The number of recipients in their 30s dropped 75.0%, from 784 in April to 196 in October. The figure for those in their 40s fell 74.2%, from 730 to 188, while the number of recipients in their 20s declined 69.0%, from 371 to 115. This suggests that much of the demand to transfer assets to children in advance of the end of the grace period on the capital gains tax surcharge was concentrated in the first half of the year.
Some forecasts suggest that, rather than gifts surging again in the short term, a wait-and-see stance will continue as people watch for tax reforms and changes in the housing market. Multi-homeowners who had a pressing need to dispose of properties have already taken steps to offload much of their holdings through sales or gifts, while those who still own properties may adjust when they sell depending on policy changes.
Yang Ji-young, an expert committee member at Shinhan Premier Pathfinder, said, “Rather than saying that gifting is over, it’s more accurate to say that everyone who was going to make a gift has done so. Sales and gifts were concentrated in April and May ahead of the end of the grace period on the capital gains tax surcharge, and it appears that multi-homeowners who needed to offload properties sold or gifted a substantial portion of them during that period.”
She added, “There is still policy uncertainty, including over tax reforms, so many people are holding off or watching the direction of future policy rather than taking further action. If the tax reform plan is finalized, some properties may come onto the market from December through January and February next year, ahead of the property tax assessment date.”
[email protected] Choi A-young Reporter