In the Gangnam 3 Districts (Gangnam, Seocho, Songpa) and Yongsan District, the number of sales listings decreased by 760 in just three days. It appears that many homeowners have withdrawn their listings due to the large volume of transactions during the land transaction permission system (LTPS) exemption period, which was recently expanded after about a month.
According to the real estate big data platform Asil on the 26th, as of the 24th, the number of sales listings in the Gangnam 3 Districts and Yongsan District was 24,041, a decrease of 760 from 25,801 on the 21st, three days earlier. By district, the number of sales listings in Gangnam decreased from 8,604 to 8,391, a drop of 213, while Seocho fell from 7,482 to 7,198, a decrease of 284. In Songpa, listings decreased from 6,760 to 6,583, a drop of 177, and in Yongsan, from 1,955 to 1,869, a decrease of 86.
The main reason for the decrease in listings is that many registered listings were removed late due to a surge in transactions during the LTPS exemption period. According to the Seoul Real Estate Information Plaza, the volume of apartment sales transactions in Seoul was 5,928 as of the 25th of February, an increase of about 2,500 from the previous month (3,384). With over a month remaining in the reporting period, the transaction volume in March is expected to exceed 5,000, currently standing at 3,271.
Yoon Ji-hae, a senior researcher at Real Estate R114, said, "The number of listings is a lagging indicator that can only be known after market transactions," adding, "Listings do not disappear immediately upon contract signing; they tend to disappear during the payment process."
Additionally, the 24th was the implementation date for the expansion of the LTPS, and there were numerous cases of homeowners withdrawing their listings over the weekend. It is reported that many sellers suggested, "Let’s just endure for six more months" during the LTPS expansion period, which is set to last until September.
A representative from a real estate agency in Jamsil-dong, Songpa District, noted, "During the LTPS exemption period, the Jamsil Els exclusive 84㎡ was traded for over 3 billion won, raising the price expectations among homeowners," adding, "Some homeowners are saying they will hold on longer since the LTPS applies until September."
There were not as many quick sales as expected. When the government and Seoul City announced the expansion of the LTPS on the 19th, there were expectations that quick sales would be finalized by the set implementation date of the 24th. However, while there were some cases of lowered asking prices, it seems that no contracts were finalized.
A representative from a real estate agency in the areas designated under the LTPS this time mentioned, "There were cases where properties that were listed for quick sale due to personal circumstances of the homeowners were contracted regardless of the LTPS status," adding, "It seems that there are currently no cases of sellers hastily reducing their prices just because they were designated as LTPS areas."