The increase in apartment listings from multiple-home owners is spreading even to non-Han River belt areas. Initially, listings grew mainly in the three Gangnam districts (Gangnam, Seocho, Songpa) and in Yongsan, Mapo and Seongdong, but recently listings have been rising even in the outskirts of Seoul. Despite this increase in listings, the loan limit has been sharply reduced, so actual transactions are centered on Nowon, Seongbuk and Gwanak, where many apartments are priced at 1.5 billion won or less. The Seoul district with the most apartment transactions this month is Nowon, accounting for 15% of all transactions.
According to real estate platform Asil on the 27th, apartment listings in Nowon District, Seoul, totaled 5,529 as of the previous day. Listings increased by 1,100 (24.8%) from early this month. By number of listings, it ranks third after Gangnam and Seocho. During the same period, listings also increased in Gwanak (21.9%), Gangbuk (13.9%), Geumcheon (10.9%), Dobong (10.8%) and Jungnang (10.5%).
Right after the government confirmed it would end the grace period for heavier capital gains taxes on multiple-home owners, apartment listings in the three Gangnam districts and in the Han River belt surged. Since then, this increase in listings has been spreading to other parts of Seoul.
Nam Hyuk-woo of the Woori Bank Real Estate Research Institute said, "Typically, when the policy stance is to tighten tax regulations, listings and price trends originating in central areas tend to transfer to outlying areas," adding, "As a result, in the short term, price adjustments and increases in listings appear first in the Gangnam area, and in the mid to long term, listings increase in the outskirts."
Despite the increase in listings, transactions are centered on districts such as Nowon, Seongbuk and Gwanak, where there are many apartments priced at 1.5 billion won or less. An analysis of the Ministry of Land, Infrastructure and Transport (MOLIT) actual transaction disclosure system shows that since Feb. 1 through the previous day, Nowon is where apartment sale transactions occurred the most in Seoul. Of a total of 2,236 transactions, 321 (14.4%) were concluded in apartment complexes in Nowon. In Nowon, Seoul One IPARK recorded the highest transaction volume.
Following Nowon, 182 transactions were concluded in Seongbuk, and more than 100 apartments changed hands in Guro (161), Eunpyeong (150) and Gwanak (129).
Most of the apartments that concluded transactions during this period were priced at 1.5 billion won or less. Of all apartment sale transactions, 1,899, or 84.9%, involved apartments priced at 1.5 billion won or less. Transactions of apartments priced over 1.5 billion won numbered only 337.
This suggests that despite the increase in listings by multiple-home owners, end users are focusing on apartments that can be financed with loans. Currently, for dwellings priced at 1.5 billion won or less, buyers can obtain a mortgage loan of 600 million won as before, but for dwellings over 1.5 billion won and up to 2.5 billion won, the limit is 400 million won, and for dwellings over 2.5 billion won, the limit has been reduced to 200 million won.
Nam said, "In outlying and mid- to low-priced areas where price increases have just begun, the decline in jeonse and monthly rental listings tends to be relatively fast, and the steady inflow of end users can also speed up the depletion of for-sale listings," adding, "However, with many units held by rental business operators, it is necessary to watch the pace at which listings come onto the market."