Proportion of Highest-Priced Transactions Falls in Two Weeks After Regulations
Mapo Sees 87% Drop in Highest-Priced Deals
Following the government's implementation of strict lending regulations last month, the number of highest-priced apartment transactions in Seoul dropped by 74% over the subsequent two weeks compared to the previous period.
According to an analysis by the real estate platform Zigbang of the Ministry of Land, Infrastructure and Transport’s actual transaction data for Seoul apartments, the number of highest-priced transactions in the two weeks after the real estate policy announcement on June 27 decreased by 74% compared to the two weeks prior (June 13?26).
In the two weeks before the announcement, there were 1,141 highest-priced transactions out of a total of 4,693, accounting for 24.3% of all deals. In particular, anxiety that “prices will rise further if I don’t buy now” spread to areas such as Mapo-gu, Seongdong-gu, and Gangdong-gu, leading to a concentration of highest-priced transactions. However, after the government’s lending restrictions took effect and the market cooled rapidly, the number of total transactions in the two weeks following the announcement (June 27?July 10) fell to 1,312, with only 300 highest-priced transactions. The proportion of highest-priced transactions also shrank to 22.9%, down from the previous two weeks.
Seongdong-gu, which had the highest number of highest-priced transactions in the two weeks before the announcement at 139, saw this figure drop by 84% to 22 afterward. In Mapo-gu, the number of highest-priced transactions fell by about 87% to 18 after the policy announcement.
Gangdong-gu also experienced an 80% decrease in highest-priced transactions to 23 after June 27, while Gangnam-gu saw a 63% reduction to 41. Other districts such as Dongjak-gu (from 85 to 15), Yeongdeungpo-gu (from 82 to 18), Gwangjin-gu (from 50 to 16), Gangseo-gu (from 34 to 16), and Dongdaemun-gu (from 30 to 4) also recorded declines in highest-priced transactions.
A Zigbang representative commented, “It is still too early to draw conclusions about market trends based solely on transaction volume, but the overall atmosphere in the Seoul and greater metropolitan housing market has entered a pronounced wait-and-see mode.” The representative added, “Due to the impact of the stringent regulations, there are signs that asking prices for existing listings are being partially adjusted, and as buyer inquiries decrease, transactions have virtually come to a halt.”
The representative continued, “There is also a possibility that demand from heavily regulated areas such as Seoul’s Gangnam region or redevelopment hubs may partially shift to less regulated districts. As buyers with limited financial resources seek relatively lower-priced options, some non-regulated areas on the outskirts of Seoul or certain parts of Gyeonggi Province may temporarily attract attention as alternatives, making it necessary to monitor these areas further.”
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