Listings Pile Up in Gangnam, While Gangbuk Has None Left to Sell... As Seoul Transactions Dwindle, Buying Sentiment Diverges [Real Estate A to Z]

Gangnam 3 Districts and Gangbuk See Decline in Land Transaction Permit Applications

Property Listings Up 25% in Gangnam While Down 3.6% in Gangbuk

As Buyer Demand Grows, Asking Prices Rise in Gangbuk

Buyers Take a Wait-and-See Appr

After a major overhaul of the real estate regulations, the number of land transaction permit applications has plummeted in both Gangnam and Gangbuk districts, but the buying trends are moving in opposite directions. In Gangnam, despite more properties being listed due to higher tax burdens, transactions have stagnated. In contrast, Gangbuk has seen property prices surge as genuine buyers with limited cash reserves are entering the market. Experts predict that these differences in market temperatures by price segment across Seoul’s real estate market will become even more pronounced in the near future.

According to The Asia Business Daily’s analysis on September 5 of land transaction permit applications submitted through the Saeol e-Government portal across 11 districts, the "three Gangnam districts" saw their applications in the most recent month (August 3 to September 3) drop by more than 40% compared to June (June 3 to July 3).

Among the three Gangnam districts, Songpa District received 199 permit applications last month, a 42.8% decrease from 348 in June—the steepest drop among the 11 districts. Gangnam District and Seocho District also saw significant declines. Gangnam dropped from 209 applications in June to 135 last month (down 35.4%), and Seocho from 150 to 102 (down 32%).

In Gangbuk, the overall number of land transaction applications also shrank sharply. Seodaemun District posted the biggest decline, with June's 243 applications down to 150 last month—a 38.3% drop. Eunpyeong District and Seongbuk District followed, with decreases of 36.6% and 28.9% respectively over the same period. Gangbuk District went from 168 applications to 111, a 33.9% decrease.

Although transaction volume is waning throughout Seoul, buying trends show striking contrasts. Gangbuk areas such as Seongbuk District, where mid- to low-priced apartments under 2 billion won are clustered, are seeing a surge in buyers which is rapidly depleting listings and pushing up asking prices. In other words, the market has become one where nothing is left to sell. According to data from Asil, the number of apartments listed for sale in Seongbuk, Nowon, and Eunpyeong districts dropped 3.6% from 8,700 listings on June 3 to 8,388 during the same period.

Mr. A, a real estate agent in Gireum-dong, Seongbuk District, explained, "This area is not affected by the comprehensive real estate tax burden, so it is extremely rare for owners to sell because of tax reasons." He continued, "Lately, demand has been coming from newlywed couples and younger buyers moving in from Gangbuk or Dobong Districts, and as prime-location and high-floor units are snapped up, sellers have started to raise asking prices above previous highs, making it difficult to conclude deals."

Conversely, in the three Gangnam districts, where high-end homes are concentrated, more properties are coming to market but transactions are slowing down. Older homeowners have been listing properties quickly to reduce their tax burden, but buyers are taking a wait-and-see approach, expecting further price cuts.

For example, a 84 square meter unit in Hyundai 14th Complex in Apgujeong recently hit the market at 5 billion won—a steep 875 million won drop from the previous transaction price. However, multiple real estate agencies in the area concurred that genuine purchase inquiries remain scarce. The representative of real estate agency B in Apgujeong commented, "The average asking price for this size is around 5.5 billion won, which means asking prices have generally fallen by about 600 to 800 million won compared to last month. While a few properties are selling quickly, most buyers believe prices could go down even more and are waiting on the sidelines."

Experts anticipate that in the Gangnam area, more urgent listings will continue to emerge for the time being, leading to some price adjustments as buyers remain cautious. However, as the 1 billion won capital gains tax exemption cap (applies in 2029) approaches and urgent listings are absorbed, a rebound is expected. Kwon Youngsun, Head of the Real Estate Investment Advisory Center at Shinhan Bank, explained, "Even in the same apartment complex and the same unit size, we are seeing price spreads of 500 to 600 million won, so some level of price adjustment via urgent sales is likely for now." He added, "But once these listings are gone, prices could rise again."

Regarding Gangbuk, he analyzed that the sharp decrease in available properties and rapid price increases could result in a consolidation phase for the time being. "In Gangbuk, properties have dried up in a very short period, and with every transaction, asking prices keep rising, making affordability more challenging for buyers," said Kwon. "Rather than a price correction, I see the market entering a phase of stable prices with more gradual increases."

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