8 Out of 10 Apartment Transactions in Seoul in April Were for Units Priced at 1.5 Billion Won or Less

Of the 6,851 Total Transactions, 5,477 Were Mid- to Low-Priced Units

Nowon District Recorded the Highest Volume with 888 Transactions

Rental Transactions Dropped by 23.7% to 15,796 Compared to the Previous Month

With the expiration of the temporary suspension of higher capital gains tax for owners of multiple homes approaching, Seoul apartment transactions surged by more than 25% last month, with 80% of all transactions concentrated in mid- to low-priced homes valued at 1.5 billion won or less.

The Seoul Metropolitan Government announced on the 21st that, as of May 15 (based on reporting date), the number of apartment transactions in April was tallied at 6,851. This represents an increase of 25.1% compared to the previous month's 5,477 transactions, marking the largest monthly increase since December of last year (40.6%). Given that real estate transactions must be reported within 30 days of the contract date, the final number of April transactions is expected to rise further.

In particular, apartments priced at 1.5 billion won or less accounted for 80.8% of last month’s transactions. This means that 8 out of every 10 sales involved mid- to low-priced apartments, which are subject to relatively fewer lending restrictions. Under the government’s October 5 real estate policy last year, the loan limit for apartments priced above 2.5 billion won was set at 200 million won, and for those between 1.5 billion and 2.5 billion won, at 400 million won. However, loans of up to 600 million won are still available for apartments priced at 1.5 billion won or less.

The district with the highest number of transactions was Nowon-gu, known for its concentration of mid- to low-priced apartments, accounting for 888 transactions, or 13% of Seoul’s total last month. Apart from Nowon-gu, transactions were also active in Gangseo-gu, Seongbuk-gu, and Guro-gu, in that order.

During this period, transaction volumes also increased month-on-month in the Gangnam area and the Han River belt. Gangnam-gu saw 278 transactions, a 67.5% increase from the previous month’s 166. Gwangjin-gu (66.1%), Seongdong-gu (58.3%), Dongjak-gu (40.9%), and Songpa-gu (34.1%) also recorded high growth rates.

In contrast, the number of monthly and long-term lease (jeonse) transactions decreased. In April, there were 15,796 lease transactions, 23.7% fewer than in March (20,709). Of all transactions, jeonse leases fell by 21.8% from 10,283 to 8,046, while monthly rentals declined by 25.7% from 10,426 to 7,750.

Among jeonse transactions, contract renewals accounted for more than half at 50.9%, and in 51.6% of these cases, tenants exercised their right to request contract renewal.

Meanwhile, according to the Korea Real Estate Board’s announcement this month, the actual transaction price index for Seoul apartments in March fell by 0.28% compared to the previous month.

The largest decline in transaction prices was observed in the southeastern region, which includes the three Gangnam districts and Gangdong-gu. The actual transaction price index for this region in March was 214.1, down 16.53 points (3.10%) from 183.8 in February. The central region, including Jongno, Yongsan, and Jung-gu, also fell by 0.46%. In contrast, the northeastern region rose by 0.40% during the same period, and the southwestern region increased by 0.06%.

By apartment size, mid-to-large units (over 85㎡ and up to 135㎡ exclusive area) and large units (over 135㎡) led the decline. Units between 85㎡ and 135㎡ saw the largest drop at 2.48%, followed by units over 135㎡, which fell by 1.98%. In contrast, small apartments between 40㎡ and 60㎡ were the only size category to record an increase, rising by 0.70% during this period.

Unlike sales prices, the actual transaction price of jeonse leases for Seoul apartments in March rose by 1.36%. All regions except the central area saw increases, with the northeastern region (Gangbuk, Dobong, Nowon, Seongbuk, Jungnang, Dongdaemun, Seongdong, and Gwangjin) recording the highest growth at 2.14%.

This content was produced with the assistance of AI translation services.