Seoul Apartment Transactions Double... Sejong Also Up 2.6 Times on 'Presidential Office Relocation' Expectations

7,369 Apartment Transactions in Seoul in March
Transaction Volume and Total Amount Up 2.3 Times Compared to January
Sejong Also Sees Sharp Increases of 2.6 and 2.8 Times, Respectively

The appearance of apartments in the Seocho-gu and Gangnam-gu areas of Seoul. Photo by Yonhap News

Last month, the volume of apartment sales transactions in the Seoul area more than doubled compared to January. Additionally, the transaction volume in Sejong also increased more than twofold during the same period due to expectations surrounding the establishment of the presidential office.

According to real estate platform Zigbang on the 16th, the total number of apartment transactions in Seoul last month was 7,369, with a total transaction amount of 9.4947 trillion KRW. Both figures represent a 2.3-fold surge compared to January.

Zigbang explained, "Discussions about lifting the land transaction permit system and expectations of interest rate cuts, which have continued since January, shifted market sentiment," adding, "This appears to have supported the recovery trend by leading to actual transactions."

In March, the Seoul apartment market saw Gangnam-gu record the highest transaction volume among autonomous districts with 589 cases. This was followed by Gangdong-gu (518 cases), Seongdong-gu (491 cases), Nowon-gu (470 cases), Songpa-gu (452 cases), Yeongdeungpo-gu (445 cases), Dongjak-gu (442 cases), and Mapo-gu (421 cases).

Yangcheon-gu's transaction volume, which was only 100 cases in January, increased more than fourfold to 417 cases last month, attributed to renewed expectations for redevelopment in Mokdong. Other areas with transaction volumes increasing more than threefold compared to January include Gangnam-gu (192 cases → 589 cases), Jongno-gu (19 cases → 58 cases), Dongjak-gu (145 cases → 442 cases), and Gangdong-gu (175 cases → 518 cases).

Last month, Gangnam-gu had the highest total transaction amount among autonomous districts at 1.5058 trillion KRW, followed by Songpa-gu (786.3 billion KRW) and Seongdong-gu (732.4 billion KRW).

Following Seoul, the apartment markets in Gyeonggi and Incheon also saw increases in both transaction volume and amount last month. The Gyeonggi area with the highest transaction volume in March was Hwaseong-si with 939 cases, followed by Suji-gu in Yongin-si (663 cases) and Bundang-gu in Seongnam-si (572 cases). In terms of transaction amount, Bundang-gu in Seongnam-si led with approximately 763.6 billion KRW, followed by Suji-gu in Yongin-si (524.9 billion KRW) and Hwaseong-si (514 billion KRW).

Outside the metropolitan area, Sejong experienced the largest increase in transactions. Last month, the transaction volume was 687 cases, a 2.6-fold increase from 266 cases in January, and the total transaction amount rose 2.8 times to 351 billion KRW. This is believed to be influenced by the absorption of low-priced properties and the expectation of the presidential office being established in Sejong, which stimulated transaction sentiment.

Meanwhile, nationwide apartment transaction volume last month reached 44,181 cases, about twice the 26,050 cases in January. The March figure also exceeded February's 38,252 cases. The total transaction amount increased from 11.8773 trillion KRW in January to 20.3028 trillion KRW in February and 23.2192 trillion KRW in March. The March transaction amount nearly doubled compared to January.

Kim Eun-sun, head of Zigbang's Big Data Lab, said, "The price adjustments since the end of last year, expectations of base interest rate cuts, and some regulatory relaxations have combined to activate demand that had been on the sidelines, starting in the first quarter." She added, "The market showed signs of pausing again in early April, so it is necessary to observe the trend in the second quarter more closely."

She continued, "With the June presidential election approaching, policy directions remain uncertain, and the global economic slowdown and domestic economic conditions are also acting as burdens on the market," adding, "The scheduled implementation of the third phase of the Debt Service Ratio (DSR) in the second half of the year could also be a variable that restricts demand entry."