Apartment gifts are surging amid a rising market for Seoul real estate. As home prices keep climbing under heavier tax burdens and tighter lending rules, more people are opting for gifts instead of sales in popular areas such as the three Gangnam districts (Gangnam, Seocho, Songpa).
According to the Court Registration Information Plaza on the 7th, from Jan. to Nov., there were 7,436 applications in Seoul for ownership transfer registrations for the purpose of gifting collective buildings (apartments, officetels, low-rise apartments, etc.). That is an increase of more than 25% from the same period last year (5,934 cases).
By district, ▲ Gangnam District 651 cases ▲ Yangcheon District 546 ▲ Songpa District 518 ▲ Seocho District 471 ▲ Gangseo District 367 ▲ Mapo District 350 ▲ Eunpyeong District 343 ▲ Yeongdeungpo District 329.
In this regard, the real estate industry sees sales regulations and tax burdens as boosting demand for gifting. Kim Hak-ryeol, head of the Smart Tube Real Estate Research Institute, said, "Even considering the acquisition tax on gifts, home prices are rising so fast that more people judge it is advantageous to gift as early as possible," adding, "In particular, in some areas such as Gangnam, home prices have risen so much that it has become impossible for children to buy homes with their income, leading many to choose gifts."
Park Won-gap, senior real estate expert at KB Kookmin Bank, also said, "As more people expect home prices to rise further, it appears more are choosing to gift first at even slightly lower prices."