The number of APT. sales transactions in Seoul is expected to remain in the 3,000 range for five consecutive months, while a succession of 'record high' transactions continues, mainly in the three districts of Gangnam. The Gangnam area is considered a scarce 'safe asset' amid the economic downturn, deepening the polarization in the Seoul APT. market.
According to the Seoul Real Estate Information Plaza on the 19th, the number of APT. sale transactions in Seoul was tallied at 2,875 as of this date in January. Considering that there are ten days left for transaction reporting, it appears difficult to exceed 3,000 transactions. The volume of APT. transactions in Seoul peaked at 9,219 in July last year, followed by a sharp decline to 6,519 in August and 3,164 in September. It recorded 3,803 transactions in October, 3,369 in November, and 3,136 in December. Thus, it is highly likely to maintain the 3,000 threshold for five consecutive months.
Despite the 'transaction cliff' in Seoul, there is a continuous stream of record-high transactions centered on redevelopment and new APT. in the three districts of Gangnam. A 196㎡ unit of Hyundai 2nd in Apgujeong-dong, Gangnam-gu was traded for 8.95 billion won (8th floor) on the 8th. This amount is not significantly different from the record high of 9 billion won set in July last year. In this case, the recent asking price has reached as high as 9.6 billion won.
The complexes from which the land transaction permission system has been lifted are seeing prices rise at an even faster rate. The Licents APT. with a dedicated area of 84㎡ in Jamsil-dong, Songpa-gu was reportedly traded for 3.1 billion won recently. The highest price for the same size APT. was 2.85 billion won from a transaction in October last year (17th floor). After the lifting of the land permission system, the asking price has exceeded 3.2 billion won. In the case of a 114㎡ unit at Raemian Daechi Palace in Daechi-dong, Gangnam-gu, it set a record high at 5.29 billion won (29th floor) on the 2nd of last month. An 84㎡ unit recorded 3.93 billion won (30th floor) in November last year. This APT. has also seen the price for 84㎡ listings exceed 4 billion won since the lifting of the land permission.
The market has analyzed that the overall APT. market in Seoul is sluggish, while the phenomenon of 'polarization' is intensifying. It noted that the demand from 'cash-rich' individuals, unaffected by the economic downturn and loan regulations, is concentrating on Gangnam APT. It interprets that they treat Gangnam APT. as a type of 'safe asset.'
Park Hapsu, a professor at the Konkuk University Graduate School of Real Estate, said, 'Even if the prices have risen a bit, asset owners are investing in areas where future profits are clearly guaranteed.' He added, 'There is a belief that prices will continue to rise as scarcity is guaranteed.'
Ham Young-jin, head of the real estate research lab at Woori Bank, noted, 'There is great anticipation for the "one smart unit," and as the supply has decreased, a seller's market has developed.' He added, 'On the other hand, markets that do not have this are waiting for overall transaction volume recovery due to weak purchasing demand amid economic slowdown, political instability, and delays in interest rate cuts.'