[Report] "Customer Canceled House Viewing Appointment" ? Quiet Mapo, "I'll Pay the Deposit" ? Flood of Calls in Bundang [Real Estate AtoZ]

Aftermath of the October 15 Real Estate Measures
Unprecedented Regulations Cause Confusion in the Market

"A client who said they would come to see the house in the afternoon canceled the appointment, saying they would 'wait and see for a while.'" (Real estate agent A near Mapo Raemian Prugio)

"Clients rushed in saying they wanted to put down a deposit. Everyone is in a hurry, worried that the loan limits might be reduced." (Real estate agent B near Yangji Village, Bundang)

Since the government announced the 'Housing Market Stabilization Measures' for Seoul and some areas of Gyeonggi Province, concerns have arisen that the number of listings may decrease and the supply of rental deposits may disappear. On the 16th, the rental deposit notice on a real estate listing board in Mapo, Seoul, was marked with an X, and the sales notice board was empty. 2025.10.16 Photo by Yoon Dongju

On the first day that unprecedented real estate regulations were announced, designating all of Seoul and 12 areas in Gyeonggi Province as land transaction permit zones and regulated areas, a variety of reactions emerged in regions where housing prices had surged. In Mapo-gu, a key part of the Han River Belt in Seoul, the consensus was that "everyone who wanted to make a deal has already done so." In contrast, in Bundang, Seongnam City, Gyeonggi Province, where prices had started to catch up with those in Seoul, phone calls flooded in from people eager to sign contracts. Meanwhile, in Nowon, Dobong, and Gangbuk districts-areas that had not experienced the balloon effect of rising prices-there was a sense of bewilderment. Real estate agencies in each area predicted that transactions would decrease, but did not expect prices to fall.

"Not even a phone call"-Quiet Mapo

On the afternoon of the 15th, real estate offices throughout Mapo-gu were quiet. The head of real estate agency A near Mapo The Classy said, "There haven't even been any phone calls. Those who wanted to buy have already put down their deposits. There were no clients looking to make a deal in the next few days." He analyzed that buyers moved quickly because regulations had been rumored in Mapo and Seongdong since last month, and the announced measures turned out to be stronger than expected.

With asking prices having risen by more than 100 million won in the past month and stronger-than-expected regulations announced, the market had shifted to a wait-and-see mode. The head of real estate agency B near Mapo Raemian Prugio said, "Clients disappeared right before the Chuseok holiday. I think people are worried that if gap investment (buying with a jeonse rental deposit) is blocked, they won't be able to pay the balance," adding, "For the time being, trading is essentially over. The number of available properties is about half of what it usually is, and sellers are unlikely to lower their asking prices." The head of agency A also remarked, "The land transaction permit system will likely feel burdensome to investors, since it requires actual residence."

Panoramic view of the Mapo Raemian Prugio complex in Mapo-gu, Seoul. Photo by Jinju Han

Agencies expect this wait-and-see attitude to continue until early next year. The head of real estate agency C near Mapo The Classy said, "Due to the land transaction permit system, transaction volume will drop sharply for the time being. We will have to watch until early next year." The head of agency D nearby explained, "You can't sell until the tenant leaves, so the number of listings will decrease and transactions will become more difficult." At Mapo The Classy, where residents began moving in February 2023, about half of the 1,419 units are occupied by tenants, who will not vacate until at least February 2027. Until then, only properties where the owner resides will be traded, and even then, transactions must be in cash and the owner must fulfill the actual residence requirement, making deals much harder to complete.

However, agencies generally agreed that prices are unlikely to fall. The head of agency D predicted, "Sellers want to move to higher-end areas, but since prices have risen everywhere else, they will try to get more when they sell." The head of agency E near Mapo Raemian Prugio added, "Even though strong measures have been implemented, prices will be slightly weak for a while, but in the long run, they will continue to rise. The price per pyeong in Mapo has reached 100 million won and I think it will catch up with Banpo." The head of agency F near Mapo Prestige Xi said, "For those selling in Mapo and looking to move to Gangnam, prices will inevitably follow Gangnam's. It all depends on how prices move in Gangnam."

"I'll put down the deposit"-Busy Bundang

Unlike Mapo, real estate agencies near Yangji Village in Bundang were busy fielding a barrage of phone calls. A representative from agency G near Kumho Complex 1 said, "As rumors of the regulatory designation spread, a 32-pyeong gap investment property in Kumho Complex 1 and a 64-pyeong property in Cheonggu Apartments were traded at 2.2 billion won and 2.96 billion won, respectively, over the past two days. Yesterday, four clients inquired about gap investment purchases, but I had to turn them away because there were no available properties." The head of agency B near Hanyang Apartments in Yangji Village shared, "One client rushed to put down a deposit before the regulations took effect, but in the process of trying to prepare the deposit earlier than planned, their financing plans got tangled, so the deposit was eventually adjusted from 10% to 7%."

Agencies expect that this round of regulations will dampen gap investment in smaller units. The head of agency G said, "Previously, the ratio of gap investment to regular purchases was about 7 to 3. But with the strengthened regulations, gap investment will decrease, especially for smaller units." He added, "As with the June 27 loan regulations, after a three-month lull following new rules, buyers tend to return after waiting for some adjustments." The head of agency H near Cheonggu Apartments also predicted, "There was a rush of buyers looking to purchase 11-pyeong and 14-pyeong units in the 1 billion won range due to reconstruction expectations, but since these are too small and difficult for actual residence, demand will likely subside."

They also believe that restrictions on transactions will make it harder to sell homes. The head of agency I said, "Homeowners who wanted to sell due to the expiration of their rental business registration are the most troubled. If tenants exercise their right to renew their jeonse contract, they will not be able to sell after the land transaction permit system takes effect, so they have no choice but to wait and not sell."

From the top: Hanyang Apartments, Yangji Village Complex 5, Seongnam-si, Gyeonggi Province; Cheonggu Apartments, Yangji Village Complex 2; Kumho Apartments, Yangji Village Complex 1. Photo by Lee Jieun

Bewildered Nowon, Dobong, and Gangbuk

Outlying districts of Seoul, which had hoped for rising home prices, were left bewildered by the sweeping regulations. A real estate agency J near SK Bukhan Mountain City in Gangbuk-gu said, "This neighborhood is mostly purchased by newlyweds who don't have a lot of cash. If it is designated as a speculative zone and loan limits are reduced, transactions will also decrease. There had been a slight uptick in deals since last summer, but now there is a lot of concern due to these new measures." A representative from agency K near Dobong Raemian said, "Transactions have been stagnant regardless of whether it was before or after June 27. It's hard to understand why this area was included in the land transaction permit zone. I'm worried that transactions might stop altogether."

Yoon Sumin, a real estate expert at NH Nonghyup Bank, explained, "The land transaction permit system could reduce transaction volume by nearly half. For apartments priced under 1.5 billion won, the loan-to-value ratio has dropped to 40%, reducing the amount that can be borrowed. Since buyers in these areas typically do not have substantial cash reserves, demand is likely to weaken. In Mapo, Seongdong, and Gwangjin, the key will be whether actual residence demand holds up after the land transaction permit system is implemented. If gap investors withdraw, as in the three Gangnam districts, price trends will depend on whether there is enough real demand to support the market."