"Decrease in Direct Apartment Sales Transactions Last Year... Due to Decline in Gifts"

2022 16% → 2023 11%
Capital Region 6%, Down 5 Percentage Points YoY
Increased Gift Acquisition Tax Burden Since Last Year

Last year, the proportion of direct apartment sales transactions decreased. This is attributed to a decline in gift transactions due to the burden of gift acquisition tax and investigations into disguised gifts.

On the 15th, Real Estate R114 analyzed the nationwide apartment sales transaction data from the Ministry of Land, Infrastructure and Transport and found that last year's direct transaction ratio was 11% (39,991 out of 373,485 cases), down 5 percentage points from 16% (40,289 out of 258,599 cases) in 2022.

The direct transaction ratio in the Seoul metropolitan area was 6% (9,484 out of 153,951 cases), a 5 percentage point decrease compared to 11% the previous year. The rates were 5.9% in Gyeonggi, 6.1% in Incheon, and 7.0% in Seoul. The decrease in Seoul and Incheon over the 2022-2023 period was particularly larger than in other regions.

The decline in direct transactions is due to a reduction in gift transactions. Since January last year, the gift acquisition tax assessment standard changed from the official price (publicly announced price) to the recognized market price, increasing the tax burden and reducing gift-related transactions. Gift transactions are included in direct transactions. The government's strengthened investigation into disguised gift transactions is also a cause.

On the other hand, the proportion of direct transactions in provincial areas was relatively high at 14% (30,507 out of 219,534 cases). The order was Jeonnam (21.6%), Jeju (21.4%), Gyeongbuk (17.6%), Jeonbuk (17.0%), and Gangwon (16.3%). Real Estate R114 explained, "It is presumed that owners who invested in apartments in provincial areas transferred ownership to tenants due to issues such as reverse jeonse and 'empty jeonse' problems." They also predicted, "Direct apartment transactions will continue mainly in small provincial cities, maintaining a double-digit proportion."