As apartment prices are showing an upward trend, centered around the Gangnam area, which has been released from the land transaction permission area in Seoul, there is also a decrease in apartment inventory in the Gangbuk area, and the number of buyers looking for urgent sales is increasing.
According to an analysis of Asil data by ChosunBiz on the 11th, the number of apartment sales listings in Nowon District, Seoul, decreased by 2.9% from 6,734 cases on February 28 to 6,541 cases as of March 10.
Local real estate agencies in Nowon District noted that this is due to transactions of properties that came out for urgent sale after the city of Seoul released some land transaction permission areas last month and the influence of some homeowners withdrawing their listings.
Previously, on February 12, the city of Seoul released the designation of land transaction permission areas that had applied to 291 out of 305 apartments located near the Global Business Complex (GBC) in Jamsil, Samsung, Daechi, and Cheongdam. The land transaction permission area is a system created to prevent speculative transactions in areas at risk of speculation, including planned development sites. When designated as a land transaction permission area, prior permission from the district head is required for transactions involving dwellings, commercial properties, and land above a certain size. For dwellings, only transactions for actual residence are permitted for two years, making it impossible to engage in gap investments that involve purchasing homes with loans or lease arrangements.
Mr. A, who runs a real estate brokerage in Sangye-dong, Nowon District, said, "Despite homeowners offering properties at lower prices this year, inquiries for apartment purchases were scarce, but after the release of the land transaction permission system in the Gangnam area, the mood in the Sangye-dong real estate market has reversed," adding that "all properties that were priced below 500 million won in Sangye Jugong Complex 9 have been sold." Mr. A mentioned that "properties needing repairs below the fourth floor are also being withheld from sale or their asking prices are being raised by homeowners."
Properties that had long been unable to find new owners are also selling quickly after the release of the land transaction permission system. Looking at the major complexes, there was only one transaction for a 49㎡ unit in Sangye Jugong Complex 9 until January this year, but there were three transactions from February 22 to March 3.
A 55㎡ unit at Geukdong Apartment in Hake-dong, Nowon District, found a new owner for 481 million won on the 5th. There had been no transactions since November last year, making it the first transaction this year. A 48㎡ unit at Biseon Apartment in Gongneung-dong, Nowon District, was also sold for 423 million won, marking the first transaction this year. The 48㎡ unit had no transactions until January this year but found new owners for 475 million won in February and 500 million won in March.
According to Hogangnono, the number of apartment transactions in Nowon District between February 10 and March 10 totaled 235, ranking first among Seoul's autonomous districts. The highest number of apartment transactions in Seoul occurred in the past month.
Mr. B, the representative of a real estate brokerage in Junggye-dong, Nowon District, said, "With the release of the land transaction permission area designation in the Gangnam area, many homeowners believe that prices will rise in the overall Seoul apartment market, including Gangbuk," explaining that "sellers think the prices have been undervalued due to transactions being locked for a long time and are raising their asking prices and withdrawing their properties."