Seocho and Yongsan Districts Report '0 Transactions' Since Toheo District Designation

Only 9 Transactions Reported in Total for Gangnam 3 Districts and Yongsan-gu
Reported Transactions May Increase as the 30-Day Reporting Period Is Not Over
Authorities Working to Establish Unified Standards for Redevelopment Move-In Rights and Multi-Homeowner Sales in Land Transaction Permission Zones

About two weeks after the entire apartment areas in Seoul's Gangnam 3 districts and Yongsan-gu were designated as land transaction permission zones, apartment transactions in these areas have sharply declined.

Yonhap News

According to the Ministry of Land, Infrastructure and Transport's actual transaction price system on the 6th, since the designation of the land transaction permission zones on March 24, the total number of reported apartment transactions in Seoul was only 629. In the four districts including the Gangnam 3 districts and Yongsan-gu, only 9 transactions were reported. In particular, Seocho-gu and Yongsan-gu had no reported transactions for two weeks.

Transactions in Gangnam-gu and Songpa-gu were also minimal. Most of the 8 transactions in Gangnam-gu were in redevelopment project complexes already designated as land transaction permission zones, and in Songpa-gu, only one transaction was reported for Jamsil Woosung Apartment sold through direct person-to-person trade. However, since the reporting period for actual transactions is 30 days, there is still room for the number of transactions to increase.

The proportion of direct transactions surged during the housing price decline in the second half of last year but decreased again as apartment prices rose this year. It is analyzed that there was an increase in bargain sales transactions before and after the expansion of the land transaction permission zones. Some believe that gift-like low-price transfers temporarily increased.

Meanwhile, Seoul City and the Ministry of Land, Infrastructure and Transport have reported confusion regarding redevelopment move-in rights and multi-homeowner sales criteria related to the land transaction permission zones and plan to establish unified standards.