Transactions in Seoul apartments, which had paused after the reassignment of the land transaction permit system for the Gangnam three districts (Gangnam, Seocho, and Songpa) and Yongsan, are reviving. Sales prices are also showing an upward trend.
The government is monitoring the market trends but has determined that no additional regulations are necessary at this time. As the new government's real estate policies have not yet been established, and there is a possibility that the market will stabilize after the strengthening of lending regulations in July, the government plans to strengthen its market monitoring.
According to the Seoul Real Estate Information Plaza, as of the 9th, the number of reported apartment transactions in May in Seoul was recorded at 5,482. Considering that the reporting deadline is at the end of this month, it is expected that the transaction volume will approach 7,000.
Transaction volume for Seoul apartments remained in the 3,000 range in the second half of last year; however, due to the effects of the lifting of the land transaction permit zone in March, it surged to 10,196. Accordingly, the government reassigned the Gangnam three districts and Yongsan as land transaction permit zones. Following this, the transaction volume in April sharply decreased, but rebounded in just one month.
Particularly around the Gangnam three districts and Yongsan, where transaction volumes had decreased due to the reassignment of the land transaction permit system, additional apartment transactions increased last month. Gangnam District's transaction volume was 153, marking a 41.6% increase from the previous month. During the same period, Seocho District's transaction volume increased by 95.9% to 96, and Songpa District saw a 10.0% increase to 142 transactions. Yongsan District also experienced a 10.5% increase, with a total of 44 transactions.
As transaction volume increases, prices are also trending upward. According to the Korea Real Estate Board's weekly apartment price trends for the first week of June, Seoul's apartment sales prices rose by 0.19% compared to the previous week. The increase is larger than the previous week's 0.16%, extending the upward trend for five consecutive weeks.
This phenomenon is interpreted as a result of the alleviation of uncertainties following the confirmation of early presidential elections, along with a growing demand for home purchases ahead of the tightening of lending regulations in July.
The government is closely observing the current market situation. When announcing stabilization measures for the housing market, including the expanded reassignment of the land transaction permit system in March, the government left room for intervention in case of market overheating, hence it is monitoring the situation. The government previously stated, "If instability in the housing market continues to spread even after the stabilization measures, we will consider various response measures without restrictions, including financial, tax, and policy lending, and will plan to take special additional measures."
However, the possibility of additional government intervention at this time is low. The government believes that the market is not at a stage of overheating that necessitates further intervention. With preemptive demand emerging ahead of the Stress Debt Service Ratio (DSR) regulations scheduled for implementation next month, there are concerns that the rate of transactions may decrease once the regulations are introduced. Furthermore, the fact that the new government's real estate policy framework has not been finalized adds to the difficulty of prompt additional measures.
An official from the Ministry of Land, Infrastructure and Transport said, "We are continuously monitoring the market situation, and if it is deemed necessary, we will take action," adding that they will assess various indicators such as prices, transaction volumes, and collateral appropriately.