This year, the share of "rising transactions" for apartments in Seoul, which showed an increasing trend, has decreased this month.
According to an analysis of actual transaction prices by real estate information provider Jikbang on the 27th, the share of rising transactions for apartments in Seoul in April recorded 45.3%. This is a decline of 4.1 percentage points from the previous month.
For the first time this year, the share of "rising transactions" traded at higher prices compared to the previous transaction on a monthly basis has decreased. The share of rising transactions for apartments in Seoul decreased from 46.1% in November last year to 40.9% in December, then increased monthly to 44.3% in January, 48.2% in February, and 49.4% in March.
As the share of rising transactions decreased, the share of falling transactions (36.3%) increased by 3.7 percentage points compared to the previous month, while the share of stable transactions also rose from 17.9% in March to 18.4% this month.
The reassignment of land transaction permit zones in the three districts of Gangnam (Gangnam, Seocho, and Songpa) and Yongsan has deepened market stagnation as the main reason for this trend.
A Jikbang representative noted, "Due to the market stagnation following the reassignment of the land transaction permit zones and the recent burden from rapid price increases, it appears that both the number of transactions and rising transactions have decreased this month."
However, despite the overall decrease in rising transactions, the share of rising transactions increased in target areas such as Gangnam. In Gangnam, the share of rising transactions this month surged to 80%, up from 60% the previous month, marking four consecutive months of increases.
Songpa also showed an increase in the share of rising transactions to 53%, up 4 percentage points from the previous month, while Yongsan rose from 58% in March to 67% this month. Seocho currently has no sales transactions.
Looking at the complexes traded at prices higher than before, Jikbang explained that the impact of the reassignment, just over a month since it was included in the land transaction permit zones, is often negligible.
However, in districts like Yangcheon (55% to 53%), Gwangjin (54% to 24%), Dongjak (54% to 50%), Seongdong (50% to 46%), Mapo (49% to 44%), Junggu (47% to 29%), and Seodaemun (43% to 38%), where there were concerns about the balloon effect from the reassignment of land transaction permit zones, the share of rising transactions has decreased.
A Jikbang representative said, "While it may be called market stagnation, this is ultimately a waiting demand, and due to the possibility of interest rate cuts and risks from supply shortages, it can change at any time depending on market conditions."