Gangnam Parents Transfer Homes to Children, Gangbuk Buyers Go All In... Seoul Apartment Transactions Rise but Total Amount Hits Yearly Low [Real Estate AtoZ]

Seoul Apartment Transaction Map Reshaped
December Sees Higher Transaction Volume, But Sharp Drop in Total Value
Genuine Buyers Motivated by "Buy Before It's Too Late"
Intensive Purchases of Northern Seoul Apartments Priced Under 900 Million

The Seoul apartment sales market is being reorganized around mid- to low-priced properties and genuine demand. Despite an increase in transaction volume in December 2025, the total transaction value sharply declined. This is attributed to a significant drop in transactions in the main price-driving districts such as the three Gangnam districts (Gangnam, Seocho, Songpa) due to the government’s strong real estate regulations, including the October 15 measures. Meanwhile, genuine buyers, motivated by a sense of urgency to purchase before it’s too late, focused on acquiring apartments priced at 900 million won or less in northern Seoul. Experts point out that if this trend becomes established, it could serve as a new catalyst for rising home prices.

Transaction Volume Rebounded, but Focused on Mid- to Low-Priced Properties

According to an analysis of the Ministry of Land, Infrastructure and Transport’s actual transaction price system on January 14, as of the previous day, there were 3,751 reported Seoul apartment sales in December 2025 (excluding canceled transactions and purchases by public institutions), a 12.4% increase from the previous month (3,337 cases). Although the reporting deadline for December transactions is the end of this month, the number already exceeds November’s figure by more than 400 cases. The market expects the final tally to surpass at least 6,000 transactions.

Last year, the Seoul apartment market was clearly a “government-controlled roller coaster,” with fluctuations driven by the strength of government lending regulations. In June, just before the June 27 policy announcement, last-minute demand surged and transactions peaked at 11,192-the highest for the year. However, after the 600 million won loan cap was implemented in July and August, transactions plummeted to the 4,100 range. The market rebounded to the 8,400 range in September, but after the October 15 measures designated all of Seoul as a land transaction permit zone, transactions dropped to the 3,300 range in November before rebounding again in December.

The majority of transactions in December 2025 took place in areas concentrated with mid- to low-priced apartments. Transactions in Nowon-gu (81.3%) and Guro-gu (52.1%) surged, while those in Seocho-gu (-60.3%), Yongsan-gu (-53.5%), and Gangnam-gu (-50.8%) were cut in half. As transactions in areas that had seen sharp price increases last year dried up, previously neglected districts saw an uptick in activity.

By complex, Hanmaeul Apartment in Guro-gu ranked first in Seoul with 19 transactions, followed by Byeoksan Live Park in Gangbuk-gu (16 transactions), Byeoksan Blooming in Gwanak-gu (15 transactions), and Taegang Apartment in Nowon-gu (15 transactions). Among the top 20 complexes by transaction volume, the only one in the three Gangnam districts was Jamsil Jugong 5 Complex in Songpa-gu (14 transactions).

The head of a real estate agency near Hanmaeul Apartment, which had the highest transaction volume, said, "After the October 15 measures, things were quiet, but transactions started picking up again in December. Even with high loan-to-value (LTV) ratios for special newborn loans or first-time homebuyers, the maximum loan amount is 600 million won, so the practical price ceiling is under 900 million won." He added, "Large complexes near subway stations that can be purchased within this budget are in high demand. As transactions have concentrated, listings have almost disappeared, and prices have risen by around 50 million won." The exclusive 59㎡ units in this complex, which were trading at 750 million to 800 million won, are now being offered at up to 820 million won.

The head of a real estate agency near Byeoksan Live Park, which ranked second in transaction volume, said, "As rental listings have disappeared, many genuine buyers, such as newlyweds, are switching to purchases. There is still a lot of interest, but with no listings available, the number of transactions is decreasing."

Total Actual Transaction Value Hits Yearly Low

Despite the increase in transaction volume, the total transaction value actually plummeted. The total sales amount in December was 4.1225 trillion won, a 5.8% decrease from November’s 4.3757 trillion won, marking the lowest point of the year. As transactions focused on mid- to low-priced apartments, the rise in volume did not translate into a higher total value. Transactions of 900 million won or less accounted for 50.9% of all deals, surpassing half. In contrast, the share of transactions exceeding 1.5 billion won fell from 26.5% to 17.9%. As deals concentrated in the sub-900 million won range, the average transaction price dropped by about 200 million won, from around 1.3 billion won to approximately 1.1 billion won.

This outcome reflects that buyer sentiment has not been dampened by the government’s strong real estate policies, such as reduced loan limits. As the affordable price range for buyers has fallen, genuine buyers have targeted mid- to low-priced apartments, resulting in increased transaction volume but decreased total value. Even for first-time homebuyers with a 70% LTV, the maximum loan amount is 600 million won, so the highest home price that can be covered by a loan is around 850 million won. For general buyers with a 40% LTV, more cash is required, further narrowing their options to apartments priced under 900 million won.

Experts believe this concentration on mid- to low-priced properties could lead to a “price leveling” effect. Yoon Sumin, a real estate specialist at NH Nonghyup Bank, said, "In the market, new constructions rise first, followed by reconstruction projects, and then the trend spreads to existing homes. New and reconstructed apartments have already seen significant price increases. As demand spreads to reconstruction projects in areas like Nowon, it is part of the process of closing the price gap, and the next stage could see buying interest spread to preferred residential complexes in areas like Guro and Geumcheon." He added, "Existing homeowners (with general LTV) find it hard to move due to loan limits, but first-time buyers with higher LTV ratios are driving a rebound in the mid- to low-priced market around the 1 billion won mark."

"Galpoja" (Those Who Give Up Upgrading) Flock to Jeonse Rentals

View of Seoul apartments from 63 Square, Yeongdeungpo-gu, Seoul. Photo by Hyunmin Kim

As the market shifts toward genuine buyers seeking to own a home, concerns about a "jeonse" (long-term lease) crisis are growing. Genuine buyers who have lost their opportunity to climb the housing ladder are flooding into the jeonse market, exacerbating supply-demand instability.

In December 2025, the total actual transaction value for jeonse rentals was about 6.6 trillion won, 1.6 times that of sales. In November, jeonse transactions (about 7.3 trillion won) were nearly double those of sales. Usually, the total actual transaction value of sales exceeds that of jeonse rentals. However, as supply shrank due to delays in new housing and reconstruction projects and landlords’ preference for monthly rentals, while demand postponed by loan regulations shifted to jeonse, the supply-demand imbalance worsened. In October, just before the policy measures, sales exceeded jeonse (about 6.7 trillion won) by about 4 trillion won. A real estate agent in Guro-gu said, "There are no jeonse listings at all. After the October 15 measures, homes with jeonse tenants cannot be sold, and since only genuine buyers are transacting, there are virtually no listings available."

In Gangnam, where the number of prospective buyers has decreased, more people are turning to gifting properties to their children out of concern for possible tax reform. According to the Supreme Court’s real estate registration information, there were 1,054 cases of gifting apartment units in Seoul in December, a 47% increase from the previous month and the highest monthly figure in three years. In particular, the three Gangnam districts saw a 70% surge, from 187 cases to 318, far surpassing the Seoul average. In Jamsil-dong, Songpa-gu, the number of gift registrations soared more than fourfold from 10 in November to 42 in December, while Banpo-dong, Seocho-gu, saw an increase from 7 to 20 cases. This is interpreted as a preemptive move in anticipation of the possible reinstatement of heavy capital gains tax in May.

Kwon Youngsun, team leader at Shinhan Bank’s Real Estate Investment Advisory Center, said, "The three Gangnam districts have many multi-homeowners and high property tax burdens, so gifting is a major consideration. As home prices rise further and gift taxes increase, more people are trying to transfer properties to their children in advance."