"‘Gangnam Apartments Sell Immediately’... What’s Happening? Even Mapo Is in Distress"

Since last month's financial sector loan regulations, the number of apartment listings in Seoul has surged. It appears that as apartment prices have risen sharply in recent months, listings have flooded the market in anticipation of capital gains. The influx of listings has begun to accumulate. Due to the steep rise in apartment prices, actual buyers are hesitating to sign contracts. Among the 25 autonomous districts in Seoul, only listings in Gangnam, Seocho, and Songpa districts?where 'cash-rich' buyers gather?are decreasing.

Seoul Walking Column - A residential complex in downtown Seoul where apartments and houses coexist. Photo by Yongjun Cho jun21@

Listings are also increasing in areas that boasted apartment price growth comparable to Gangnam. According to apartment transaction data on the 6th, in Mapo-gu, apartment listings increased by 6.9%, from 2,929 to 3,132, over the past month. The Mapo The Class in Ahyeon-dong, which was completed in 2022, saw listings rise by 51%, from 64 to 97, in just one month. It seems that units meeting the capital gains tax exemption requirement (2 years) are flooding the market.

Although a 59㎡ unit was traded at a record high of 1.625 billion KRW in August, no transactions have occurred since. Nearby real estate agents say, "Until a month or two ago, there was a trend of continuously raising asking prices, but recently, buyers with limited funds and sellers have not been able to agree on prices."

In the nearby complex Mapo Raemian Prugio, listings increased by 19.6%, from 132 to 158, during the same period. Seongsan Siyoung listings rose from 32 to 55. While 15 to 20 transactions occurred monthly in June and July, contracts dropped sharply to 4 in August. Only one transaction has been reported so far this month.

Listings are also accumulating in Seodaemun-gu (6%), Dongjak-gu (4.4%), and Eunpyeong-gu (5.4%). In Dongjak-gu, Shindonga River Park in Noryangjin-dong saw listings rise from 33 to 40. A 59㎡ unit sold for 960 million KRW in August, continuing the upward trend since early this year (800 million KRW). In Eunpyeong-gu, Hills State Nokbeon listings increased from 32 to 42, and Bukhansan Raemian listings rose from 38 to 58, causing asking prices to fall.

On the other hand, Gangnam-gu saw listings decrease by 5% to 7,701 units. While listings increased in Irwon-dong (8.6%) and Segok-dong (4.9%), they decreased in Daechi-dong (-12.5%), Gaepo-dong (-7.1%), and Apgujeong-dong (-14%). In Gaepo-dong, listings in complexes undergoing reconstruction, such as Woosung 3rd Complex (-25%), Gaepo Jugong 6th Complex (-23.9%), and Gaepo Jugong 5th Complex (-23.4%), sharply declined. Listings in Seocho-gu and Songpa-gu also fell by 3.3% and 3.6%, respectively.