Seoul Apartment Transactions Rise After LTPS Lift, but Multiplex and Multi-Family Housing Remain Sluggish

Since the lifting of the Land Transaction Permission System (LTPS), the number of apartment sales transactions in Seoul has been on the rise, but transactions for multiplex and multi-family housing remain sluggish.

According to real estate information platform Dabang on March 18, the number of apartment transactions in Seoul last month reached 5,171, a 91% increase compared to 2,714 during the same period last year. In contrast, transactions for multiplex and multi-family housing totaled 1,858, marking only a 2% increase from 1,816 in the same period last year.

Compared to January of this year, apartment transactions in Seoul increased by 54% from 3,367, while multiplex and multi-family housing transactions rose by just 17% from 1,593.

Additionally, in the three Gangnam districts-Jamsil, Samseong, Daechi, and Cheongdam-dong-which were removed from the LTPS designation, the number of multiplex and multi-family housing transactions actually declined, further highlighting the polarization in the market.

Last month, apartment transactions in the three Gangnam districts totaled 1,105, a 137% increase from 466 during the same period last year. However, multiplex and multi-family housing transactions were limited to 159, a 24% decrease from 208 a year earlier. Even compared to January of this year, apartment transactions in these districts increased by 55% from 715, but multiplex and multi-family housing transactions rose by only 4% from 153.

A Dabang representative stated, "While the announcement of the lifting of the Land Transaction Permission System has led to increases in both apartment transaction volumes and sale prices, the impact on multiplex and multi-family housing has been minimal." The representative added, "Despite the deregulation, ongoing fears of jeonse fraud and the prolonged slump in the non-apartment market continue to have a persistent impact across the market."