Seoul Land Transaction Permits Up 13% Since Late November... Nowon District Doubles [Real Estate AtoZ]

Zigbang Compares 40 Days Before and After Expansion of Land Transaction Permit Zones
5,252 Permits in First 40 Days After Expansion, Rising to 5,937 in the Most Recent 40 Days
Nowon District Sees Increase from 284 to 615 Permits

In the 40 days following the government's expansion of land transaction permit zones throughout Seoul under the October 15 real estate policy, the number of permits issued increased by approximately 13% compared to the period immediately after the policy was implemented. Notably, Nowon District saw its transaction volume more than double.

Yonhap News Agency

According to an analysis by Zigbang of Seoul's land transaction permit records released on January 12, there were 5,252 permits issued during the 40-day period from October 20 to November 28 last year. In the subsequent 40 days (from November 29, 2025, to January 7, 2026), the number of permits rose to 5,937, marking a 13% increase.

There is typically a time lag between receiving a permit within a land transaction permit zone and the actual signing of a contract. Previously, major areas such as Gangnam, Seocho, Songpa, and Yongsan, as well as some other redevelopment or planned development sites, had already been designated as land transaction permit zones. Acquiring land above a certain size in these zones requires prior approval from the local government, and buyers must fulfill requirements such as actual residence and submitting a funding plan. However, the number of permits issued does not always match the actual number of transactions. There is a time gap between permit issuance, contract signing, and the reporting of actual transactions, during which contracts may be withdrawn or canceled.

Zigbang commented, "The increase in land transaction permits indicates that the transaction sentiment, which had contracted immediately after the implementation of regulations, is partially recovering. Particularly, since buyers must meet actual residence requirements, the flow of transactions is being maintained at a certain level based on real demand rather than short-term speculative profit."

By district, there were contrasting trends between areas where the land transaction permit zone designation was maintained and those newly designated. The number of applications decreased in Songpa (827 to 439), Gangnam (484 to 233), Seocho (362 to 164), and Yongsan (199 to 90). In contrast, newly designated areas such as Nowon (284 to 615), Seongbuk (259 to 392), Eunpyeong (203 to 313), Guro (176 to 312), and Yeongdeungpo (131 to 311) saw a marked increase.

The decline in permits issued in the three Gangnam districts and Yongsan is interpreted as a result of fatigue from the continued regulatory environment. While transactions in these areas have been sustained mainly by buyers with ample financial resources, there is now a more cautious attitude due to concerns over high price levels and a growing perception that prices have peaked. Additionally, the potential for future changes in tax and regulatory policies is contributing to a weakening of additional demand inflows as buyers consider mid- to long-term risks.

In newly designated land transaction permit zones, after an initial period of wait-and-see following the introduction of regulations, transactions based on actual demand are gradually recovering. There is also evidence of buyers entering the market with the intention to meet actual residence requirements. This trend is especially pronounced in areas with steady residential demand or where a demand base centered on actual occupancy has formed. These developments suggest that selective buying is occurring in response to changes in policy conditions.

In Nowon District, the number of permits issued increased by about 117% to 615 in the 40 days after the designation as a land transaction permit zone, compared to 284 immediately after the designation. According to Ministry of Land, Infrastructure and Transport transaction statistics, the number of actual transactions also rose from 210 to 401 during the same period. Among Seoul's 25 districts, Nowon recorded the highest number of transactions. The relatively lower transaction prices compared to other areas and the mention of some complexes in Sanggye and Junggye as candidates for mixed-use redevelopment under district unit plans have contributed to the increased buying activity in Nowon. For example, 49 square meter units in Junggye Green Complex 1 traded between 553 million and 585 million won, while 58 square meter units in Sanggye Jugong Complex 9 changed hands at prices ranging from 500 million to 563 million won.

Experts point out that this year’s housing market will require close monitoring due to a range of potential policy and institutional variables, including additional real estate measures, tax adjustment discussions, and local elections.

Kim Minyoung, Manager of Zigbang’s Big Data Lab, stated, "As the market adapts to the regulatory environment, limited buying activity centered on actual residence demand continues, and even those who had been waiting on the sidelines are gradually reassessing the market. For the time being, rather than a clear rebound in transaction volume, it is likely that selective transaction flows will persist depending on region, price range, and demand characteristics."

He added, "Going forward, it will be important to observe not only the immediate responses to regulatory changes but also how shifts in perceptions of supply are reflected in the mid- to long-term decision-making of actual homebuyers."