Last year, the proportion of out-of-Seoul residents purchasing apartments in Seoul reached an all-time high. Amid the surge in demand for a 'single solid unit' and a preference for safe assets, the increase in apartment purchases in Seoul was larger in mid-priced areas compared to Gangnam.
An analysis of apartment transaction status by residence of buyers conducted by the Korea Real Estate Board on the 23rd revealed that last year, the proportion of non-resident buyers (hereafter referred to as outsiders) purchasing apartments in Seoul was 21.5%, marking the highest level since the relevant survey began in 2006.
The proportion of outsiders purchasing apartments in Seoul remained similar in the range of 17% to 18% for a decade after recording 17.8% in 2006. It then increased to 19.9% in 2017, and first exceeded 20.0% in 2021. Although it dropped to 18.7% in 2022 amid a sharp decline in apartment prices and intensified transaction stagnation, it recovered to the 20% range (20.9%) in 2023.
The significant increase in the proportion of outsiders purchasing apartments in Seoul last year was due to a combination of factors, including the sharp drop in apartment prices resulting from interest rate hikes, and a trend of avoiding villas amid rental scams, leading buyers to flock to apartments in Seoul, regarded as a 'safe asset' in the real estate market.
In particular, as the housing market has been restructured around actual demand due to regulations on multiple homeowners, it seems that the demand for homeownership and upgrading has increased, utilizing policy loans such as the Special Bogeumjari Loan in 2023 and the Newborn Special Loan in 2024 to target the Seoul apartment market.
By district, the highest proportion of outsider purchases last year was in Gangdong District, reaching 27.3%. This marks a significant increase of 5 percentage points from 22.3% in 2023, setting an all-time high since the 2006 survey. Furthermore, Gwangjin District and Eunpyeong District also recorded high proportions of 25.6% and 25.3%, respectively, marking the highest levels since 2006. Other districts, such as Geumcheon (24.7%), Yeongdeungpo (24.0%), Yongsan (23.6%), Mapo (22.7%), Songpa (22.5%), and Seodaemun (22.2%), also saw proportions of outsider purchases that exceeded the average in Seoul.
In contrast, the highest apartment prices were found in Gangnam District and Seocho District, where the proportions of outsider purchases were 21.5% and 21.2%, respectively, down from the previous year (22.6% for Gangnam and 25.0% for Seocho). The plummet in prices in the Gangnam area, driven by the 'single solid unit' trend, contributed to this increased financial burden.
However, analysis suggests that the proportion of outsider purchases in the Gangnam area of Seoul could increase this year, following the substantial lift of land transaction permit zones in Daechi and Samsung-dong of Gangnam District and the Jamsil area of Songpa District starting from the 12th of this month.
On the other hand, the proportion of Seoul residents purchasing apartments in other regions last year was 5.5%. This represents a slight increase from 5.4% in 2023 but remains lower than the levels of 7% to 8% seen in previous years. This decline is interpreted as a decrease in overall investment demand in other regions due to regulations on multiple homeowners and high interest rates.