"Take the Opportunity While You Can": Did the President's Warning Work? Slight Increase in Seoul Apartment Listings

Sharing Article on "Gangnam Property Slashed by 400 Million Won"
Ahead of End to Capital Gains Tax Relief
57,468 Seoul Apartments Listed for Sale
Up 3.1% in Five Days... "Still Testing the Waters" in a Wait-and-See Mood

On February 2, President Lee Jae-myung, who has been consistently sending real estate messages targeting owners of multiple homes, shared a news article on X (formerly Twitter) about a property in Gangnam, Seoul, being listed for sale at a price 400 million won lower than before. This move comes after he reiterated his commitment to steadily pursue policies aimed at stabilizing the housing market, and it demonstrates that he is closely monitoring market trends. There are also signs of a shift in the market, with the number of apartment listings in Seoul, which had been steadily declining, now beginning to rise again.

According to data from the real estate platform Asil as of January 31, the number of apartments (including officetels) listed for sale in Seoul reached 57,468, an increase of 3.1% compared to five days earlier. This represents an increase of nearly 2,000 listings, the highest growth rate among metropolitan municipalities. Industry insiders attribute this to homeowners rushing to list their properties ahead of the reinstatement of heavier capital gains taxes.

President Lee Jae-myung speaking at the Cabinet meeting. Photo by Cheongwadae Press Corps, Yonhap News Agency

After exceeding 90,000 listings around March of last year, the number of apartments for sale in Seoul had been on a steady decline. Loan regulations and the designation of all of Seoul as a land transaction permission zone had restricted transactions, but even after the current administration took office, sellers continued to withdraw their listings, expecting home prices to keep rising. This led to a prolonged seller's market. However, the recent reversal and clear signs of an increase mark a significant change in the market dynamics.

The timing of the increase in listings has drawn attention, as it closely coincides with President Lee's recent comments on real estate. From last weekend through the morning of February 2, President Lee posted six real estate messages on X, putting strong pressure on owners of multiple homes. On January 31, he wrote, "Take the opportunity while you can... Soon you will realize this was your last chance." He also posted, "Just like the valley clean-up or achieving a stock index of 5,000... I will succeed in stabilizing home prices no matter what it takes." On February 1, targeting the so-called "bolt from the blue" narrative, he questioned, "After seeing the country ruined by real estate speculation, why do you still side with speculators?" He also pointed out that the temporary suspension of the heavier capital gains tax has "dragged on for almost four years."

By drawing lessons from the previous Moon Jae-in administration, President Lee is sending a strong message that "this time will be different." He has made it clear that, unlike the previous government, there will be no compromise with the market after implementing policies. This is interpreted as an attempt to preemptively block speculative demand that is trying to "hold out."

In the market, there is a wait-and-see attitude about whether the recent increase in listings will continue. An agent at a real estate office in Mapo-gu, Seoul, said, "Since the President's comments, some homeowners have put up properties that are either cheap or have relatively low asset value, but for apartments with high demand, there has been no change, as many still believe that if they hold out, prices will eventually rise, just like during the Moon administration."

A real estate agent in Ichon-dong, Seoul, said, "After the President's comments on the heavier capital gains tax, two listings from owners of multiple homes appeared, but asking prices did not drop much. They seem to be thinking of selling soon, and if it sells now, that's good, but if not, they are not in a hurry to dispose of their properties."

Some believe the increase in listings will remain limited due to the many restrictions on apartment transactions. A real estate agent near Gireum New Town said, "Most properties owned by multiple homeowners are rented out, and with lease contracts still in effect and other restrictions, it's difficult to list them even if they want to. The properties that came on the market in anticipation of the heavier capital gains tax have already been sold, and some homeowners are still competing to raise their asking prices."