Amid a slowdown in the Seoul apartment sales market due to the Oct. 15 real estate measures, apartment transaction volume in the Han River belt area in particular has plunged. As all of Seoul has been designated as a regulated area, including the land transaction permit system (Toheoje), available loan amounts have fallen and "gap investment," buying with a jeonse tenant in place, has been blocked, analysts said.
According to the Ministry of Land, Infrastructure and Transport's actual transaction price system on the 7th, the number of reported apartment transactions in Seoul in November through the 6th totaled 2,372, excluding purchases by public institutions. That is down 72.6% from 8,663 transactions in October, the previous month.
For November contracts, the transaction reporting period runs until the end of this month, so the number of reports may increase. However, considering the current trend, it is likely to remain at the level of August (4,441), half of October.
By district, transaction volume fell sharply in Han River belt areas such as Mapo, Seongdong, Gwangjin, Dongjak, and Gangdong. These areas led price gains before the Oct. 15 measures. In anticipation of designation as a permit zone, many buyers using jeonse rushed in, but after the designation, buyers shifted to a wait-and-see stance.
Gwangjin's November contract reports have reached only 18 so far. That is a 91.4% decline from 210 in October. Seongdong fell 89.8%, from 383 in October to 39 so far in November. Gangdong dropped 89.6%, from 568 to 59, and Mapo fell 89.2%, from 424 to 46, marking steep declines.
By contrast, the four districts that had been subject to "triple regulations" — regulated areas and land transaction permit zones — even before the Oct. 15 measures, including the three Gangnam districts and Yongsan, saw smaller declines. Seocho has 154 November contracts reported so far, down just 29.4% from 218 in October. Gangnam fell 31.4%, from 293 in October to 201 so far in November.
If reporting continues through the end of this month, the two districts' November transaction volume could approach or surpass October's. Yongsan fell 40.4%, from 114 in October to 68, and Songpa fell 44.1%, from 608 to 340.