Gangnam Owners Transfer to Children, Gangbuk Buyers Max Out Loans... Seoul Apartment Transactions Rise but Annual Transaction Value Hits 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 amount plummeted. This is attributed to a sharp decline in transactions in key areas such as the three Gangnam districts (Gangnam, Seocho, Songpa)-the epicenters of price surges-due to strong real estate regulations like the October 15 measures, while genuine buyers, motivated by a sense of "buy before it's too late," concentrated on purchasing apartments priced under 900 million won 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 Rebounds, But Focus on Mid- to Low-Priced Properties

According to an analysis of the Ministry of Land, Infrastructure and Transport's actual transaction price system as of January 13, the number of reported Seoul apartment sales in December 2025 was 3,751 (excluding canceled transactions and purchases by public institutions), up 12.4% from the previous month (3,337). Although the deadline for reporting December transactions is at the end of January 2026, the number is already more than 400 higher than the total for November. Market forecasts suggest the total could exceed 6,000 transactions.

The Seoul apartment market in 2025 clearly exhibited a "government-controlled rollercoaster" pattern, swaying with the intensity of government lending regulations. In June, right before the June 27 measures were announced, last-minute demand pushed transactions to an annual high of 11,192. However, after the 600 million won loan cap was implemented in July and August, transactions plummeted to around 4,100. The number rebounded to about 8,400 in September, but after the October 15 measures designated all of Seoul as a land transaction permit zone, transactions fell to around 3,300 in November before rebounding again in December.

Most transactions in December 2025 took place in areas with concentrations of mid- to low-priced apartments. Increases were notable in Nowon-gu (81.3%) and Guro-gu (52.1%), while Seocho-gu (-60.3%), Yongsan-gu (-53.5%), and Gangnam-gu (-50.8%) saw their transaction volumes halved. While transactions dried up in areas that had previously experienced sharp price increases, activity picked up in regions that had been previously overlooked.

By apartment 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 ranked first in transaction volume, said, "It was quiet right after the October 15 measures, but transactions started picking up again in December 2025. Even with high loan-to-value (LTV) ratios for special newborn loans or first-time homebuyer programs, the maximum loan is capped at 600 million won, so buyers are effectively limited to homes under 900 million won." He added, "Many buyers are looking for large complexes near subway stations within this price range. As transactions surged, most listings have been sold, and prices have risen by around 50 million won." The exclusive 59-square-meter units in this complex, which used to trade at 750 million to 800 million won, are now being listed at up to 820 million won.

The head of a real estate agency near Byeoksan Live Park, which ranked second in transaction volume, also noted, "As jeonse (long-term deposit lease) listings have disappeared, many genuine buyers, such as newlyweds, are switching to purchases. There are still many inquiries, but with no listings available, transactions are declining."

Total Actual Transaction Value Hits Annual Low

Despite the increase in transaction volume, the total transaction value actually dropped sharply. The total sales amount in December was 4.1225 trillion won, down 5.8% from November's 4.3757 trillion won, marking the lowest level of the year. Since transactions were concentrated on mid- to low-priced apartments, the total transaction amount declined even as the number of deals increased. Transactions under 900 million won accounted for 50.9% of all deals, surpassing half. Meanwhile, the share of transactions over 1.5 billion won fell from 26.5% to 17.9%. As deals concentrated in the under-900-million-won segment, the average transaction price dropped by about 200 million won, from around 1.3 billion won to about 1.1 billion won.

This is the result of buyer sentiment remaining resilient despite the government's strong real estate measures, such as reduced loan limits. As genuine buyers with lower purchasing power focused on mid- to low-priced apartments, transaction volume rose but the total amount fell. Even for first-time homebuyers eligible for a 70% LTV, the maximum loan is 600 million won, so the maximum home price that can be covered by loans is around 850 million won. For general buyers subject to a 40% LTV, even more cash is needed, narrowing their choices to apartments under 900 million won.

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

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

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 crisis" are growing. Genuine buyers who have lost their "housing ladder" are turning to the jeonse market, exacerbating supply-demand instability.

In December 2025, the total actual jeonse transaction value reached about 6.6 trillion won-1.6 times higher than sales. In November, jeonse (about 7.3 trillion won) was nearly double the sales total. Typically, the total value of sales transactions exceeds that of jeonse. However, with supply shrinking due to delays in move-ins and reconstruction and landlords preferring monthly rentals, while demand postponed by loan regulations is shifting to jeonse, the supply-demand imbalance is worsening. In October, just before the new 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. Since the October 15 measures, homes with jeonse tenants are not selling, and with only genuine buyers active, there are virtually no listings available."

In Gangnam, where the number of buyers has declined, more homeowners are opting for gifts and inheritance transfers, fearing upcoming tax reforms. According to the Supreme Court's real estate registry, there were 1,054 cases of collective building gifts 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 to 318 cases during the same period, far outpacing the citywide average. In Jamsil-dong, Songpa-gu, gift applications soared from just 10 in November to 42 in December, more than quadrupling, while Banpo-dong, Seocho-gu, saw an increase from 7 to 20. This is interpreted as a preemptive move ahead of the expected reinstatement of heavier capital gains taxes in May 2026.

Kwon Youngsun, team leader at Shinhan Bank's Real Estate Investment Advisory Center, said, "The three Gangnam districts have many multi-homeowners and high holding tax burdens, so there is a lot of consideration about gifting. It appears that more people are transferring homes to their children in advance, before further price increases lead to higher gift taxes."