"Are Policy Measures Losing Steam?"...The Stirring Real Estate Market [Real Estate AtoZ]

18% Drop in Seoul Apartment Sale Listings After Policy Announcement
Record-High Transactions for Low 1 Billion-Won Apartments in Northern Seoul
"Account Number Unavailable in One Out of Three Sale Transactions"
Proportion of Jeonse Contracts Over

The Seoul apartment market, which had been quiet following the October 15 policy measures, is showing signs of instability. As the number of listings has plummeted, more areas on the outskirts of Seoul are recording new high prices. In particular, with the expansion of land transaction permit zones, the supply of rental properties has dried up and prices are fluctuating, prompting more people to consider buying. Analysts say the effects of the policy measures are gradually wearing off.

No Listings, But Home Prices Keep Rising

According to the real estate big data platform Asil, as of the 11th, the number of apartment listings in Seoul had decreased by 18.0% compared to October 16, immediately after the announcement of the policy measures. Listings fell from 72,997 to 59,883. Even considering that winter is typically a slow season for real estate, the decline in listings is notable. By district, several areas have seen more than a 30% drop in listings: Seongbuk District (-32.7%), Seodaemun District (-32.4%), Gangseo District (-30.2%), Mapo District (-29.0%), and Dongdaemun District (-28.0%) experienced the largest decreases. This indicates a significant reduction in listings in areas favored by actual homebuyers. Seongbuk, Seodaemun, and Gangseo Districts, in particular, have many properties priced under 1.5 billion won, which are eligible for loans of up to 600 million won.

As listings have decreased, prices are rising. The price surge is especially pronounced for small apartments. With rental supply for both jeonse and monthly leases extremely tight, buyers are willing to take on debt to purchase small apartments in the 1 billion to 1.5 billion won range, resulting in transactions at record-high prices.

For example, a 59-square-meter unit at Nokbeon E-Pyunhansesang Castle in Eungam-dong, Eunpyeong District-an area popular among young professionals commuting to the city center-was sold for 1.2 billion won, surpassing the previous record of 1.175 billion won. A representative from a nearby real estate agency said, "There are virtually no listings. When a transaction does occur, it sets a new record high. There are buyers looking for properties around 1.1 billion won, but sellers are listing at the mid-1.2 billion won range." The representative added, "Sometimes, even when a buyer is found and requests the seller's bank account information, about one out of three sellers refuses to provide it, hoping to get a better price. In some cases, sellers are able to sell at their desired price, but the transaction falls through because the owner of the property they want to buy won't provide their account information."

On the 27th, apartment prices in Mapo and Seongdong districts of Seoul were announced to have risen at the largest rate since related statistics began to be published in 2013. The expectation that Seoul apartment prices will continue to rise is forecasted to sustain the upward trend for the time being. The photo shows a panoramic view of apartment complexes in downtown Seoul as seen from Namsan, Seoul. 2025.06.27 Photo by Dongju Yoon

The situation is similar in the Yangpyeong-dong area of Yeongdeungpo District, where the shortage of small apartment listings is severe. The head of an agency in Yangpyeong-dong said, "Recently, every listing that comes on the market is sold immediately, so there aren't many properties available."

In northern Seoul, apartments priced in the low 1 billion won range are also setting new record highs this month. A 59-square-meter unit at Bomun Parkview Xi in Bomun-dong, Seongbuk District, was sold for a record 1.115 billion won on the 2nd of this month, 45 million won higher than the previous transaction. An 84-square-meter unit at DMC Parkview Xi in Namgajwa-dong, Seodaemun District, was sold for 1.5 billion won on the 2nd, approaching the previous record of 1.54 billion won set in September 2021. A 59-square-meter unit at Ujangsan Hillstate in Naebalsan-dong, Gangseo District, changed hands for 1.36 billion won on the 2nd, 63 million won above the previous record.

As Jeonse Prices Keep Rising, "Let's Buy a Home"

Jeonse prices are expected to continue rising, which could further increase demand for home purchases. As jeonse prices rise, transactions over 600 million won now account for nearly 50% of all jeonse deals. According to the Ministry of Land, Infrastructure and Transport's actual transaction price system, as of the 11th of this month, 30.9% of Seoul apartment jeonse transactions were in the 600 million to 900 million won range, up 5.75 percentage points from 25.15% in January of this year. The proportion of high-value jeonse transactions exceeding 900 million won also increased to 15.31%, up 4.99 percentage points from 10.32% in January. According to Asil, as of the 12th, the number of jeonse listings for Seoul apartments dropped by 6.1% over the past month, from 26,467 to 24,854.

There are growing indications that the effects of the October 15 policy measures are weakening. According to the Korea Real Estate Board's weekly apartment price trends for the second week of December, Seoul apartment prices rose by 0.18%, with the rate of increase accelerating compared to the previous week. Songpa District (0.34%), Dongjak District (0.32%), Yongsan District (0.28%), Seongdong District (0.27%), and Yeongdeungpo District (0.26%) recorded the largest increases. Ham Youngjin, head of the Real Estate Research Lab at Woori Bank, said, "The regulatory environment is unlikely to change significantly next year. With jeonse listings having already decreased due to a shift to monthly rentals, and for-sale listings also declining, there is a possibility that the supply of new homes will also decrease. The rising proportion of high-value jeonse transactions around 900 million won is also a sign that jeonse prices are increasing. The decrease in jeonse listings and the higher volatility in jeonse prices could drive more people to purchase homes."