As the apartment transaction market has slowed due to lending regulations, the proportion of long-term holders selling their dwellings last month has increased.
According to an analysis by the real estate information provider Zigbang regarding the status of sellers of apartment buildings in Seoul released on the 16th, the proportion of those who sold after holding their dwellings for more than 10 years reached 30.5% in November, the highest since September 2021 (30.7%). Out of a total of 8,567 people who sold apartment buildings in Seoul in November, 2,613 had held their dwellings for over 10 years.
Looking at the proportion of sellers of apartment buildings in Seoul from January to October this year, the proportion of 'selling after holding for more than 10 years' was around 26.8% to 28.7%, with November being the only month exceeding 30%.
Zigbang noted, "Since the total debt service ratio (DSR) 2 phase was implemented in September and the lending regulations have been enforced broadly, apartment prices in Seoul have shown stability since the fourth quarter. It seems that long-term holders are motivated to sell as soon as possible before the situation worsens."
By detailed holding periods, the largest group of sellers was those holding for over 10 years and up to 15 years, totaling 1,005 people (38%). These individuals purchased their dwellings during the domestic real estate market's recession caused by the global financial crisis from 2010 to 2014. Currently, the apartment sale price in Seoul (38.83 million won per 3.3㎡) is more than double what it was a decade ago in December 2014 (14.57 million won per 3.3㎡). The next largest groups included those who held for over 20 years with 827 sellers (32%) and those who held for over 15 years but less than 20 years with 781 sellers (30%).
By district, the areas with the most long-term holders selling after over 10 years were ▲Songpa District (8.1%, 212 people) ▲Gangnam District (7.8%, 203 people) ▲Seocho District (6.9%, 180 people) ▲Nowon District (6.8%, 178 people) ▲Mapo District (6.0%, 158 people). This year, the proportion of long-term holders selling was high in areas with increased transaction volume due to turnover. In particular, the three districts of Gangnam ranked among the top. Zigbang explained that despite the sluggish buying momentum, the demand remains steady in preferred areas, leading to speculation that long-term holders' profit-taking properties have been released and transacted.
A representative from Zigbang stated, "Although the Bank of Korea has lowered the base rate twice in a row, the lending regulation stance remains strong, and the weakened buying sentiment has not revived, compounded by fears of export downturn following the election of President Trump in the U.S., resulting in an unfavorable economic outlook. Recently, political uncertainty has further added to the turmoil. It appears likely that the transaction market will remain subdued for the foreseeable future, regardless of short-term or long-term holdings."