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

Three Gangnam Districts and Gangbuk See Simultaneous Drop in Land Permit Applications

Gangnam Listings Increase by 25%, Gangbuk Down by 3.6%

Gangbuk Asking Prices Rise Amid Surge of End-Users

Buyers Remain on Sidelines Despite Forced Sales in Apgujeong

Following the implementation of a high-intensity tax reform, both the Gangnam and Gangbuk areas have seen a sharp decline in land transaction permit applications, yet the purchasing trends are heading in completely opposite directions. In Gangbuk, despite an increase in property listings due to tax burdens, transactions have shrunk. In Gangnam, on the other hand, driven by end-users with limited cash, asking prices are rising. For the time being, it is expected that the divergence in pricing across different segments of the Seoul real estate market will become even more pronounced.

According to The Asia Business Daily’s compilation of land transaction permit application data submitted to Seoul’s Saeol e-government system, the three Gangnam districts saw a drop of more than 40% in applications last month (August 3 to September 3) compared to this June (June 3 to July 3).

Among the three Gangnam districts, Songpa-gu received 199 permit applications last month, down 42.8% from 348 in June, representing the largest decrease among the 11 autonomous districts surveyed. Gangnam-gu and Seocho-gu also saw declines; applications dropped from 209 and 150 in June to 135 and 102 last month, marking decreases of 35.4% and 32%, respectively.

A similar drop in land transaction permit applications was observed in Gangbuk districts as well. Seodaemun-gu recorded the sharpest fall in Gangbuk, with applications plunging by 38.3% from 243 in June to 150 last month. Eunpyeong-gu and Seongbuk-gu followed, with decreases of 36.6% and 28.9%, respectively, over the same period. Gangbuk-gu also saw transaction numbers fall by 33.9% from 168 to 111 during this time frame.

Despite a clear contraction in transaction volume across Seoul, buying sentiment is showing stark differences by region. In Gangbuk, where apartments priced below 2 billion won are concentrated—such as Seongbuk-gu—a rapid inflow of buyers has resulted in dwindling listings and rising asking prices. This means sellers simply cannot meet the demand. According to local property data service Asil, the number of apartments for sale in Seongbuk-gu, Nowon-gu, and Eunpyeong-gu decreased by 3.6%, from 8,700 listings as of June 3 to 8,388 during the relevant period.

Mr. A, head of a real estate agency in Gireum-dong, Seongbuk-gu, noted, “Gireum-dong is not affected by the comprehensive real estate tax, so there are very few people putting their homes on the market due to tax burdens. Recently, the demand from young couples and newlyweds moving from Gangbuk or Dobong-gu has been concentrated here, so the most desirable units and floors were snapped up, and as sellers have responded by raising their asking prices—sometimes above the previous record price—transactions are not closing smoothly.”

In contrast, the three Gangnam districts, where luxury housing is concentrated, are seeing an increase in listings but a slowdown in transactions. As older property owners rush to list their homes to reduce tax burdens, buyers have shifted to a wait-and-see approach in anticipation of further price drops.

At Hyundai 14th Apartment in Apgujeong, for example, a unit with an exclusive area of 84 square meters was recently put on the market as a forced sale for 5 billion won—875 million won lower than the previous transaction price. Yet, according to local real estate agents, there has been little buying interest. Mr. B, head of a real estate office in Apgujeong, commented, “The average asking price for this unit type is about 5.5 billion won, showing drops of roughly 600–800 million won compared to last month. Although there are occasional forced sales, buyers are expecting further price cuts and are adopting a wait-and-see attitude.”

Experts forecast that, in the Gangnam area, as forced sales continue to appear and buyers remain cautious, some price adjustments will occur for now. However, if a significant portion of these forced sales are absorbed before the 1 billion won cap for the long-term holding special deduction comes into effect in 2029, an upward price trend may resume. Kwon Youngsun, team leader at Shinhan Bank’s Real Estate Investment Advisory Center, stated, “Even within the same apartment complex and the same unit size, there are properties with price differences of 500–600 million won, so for the time being, we may see further price adjustments driven by urgent sales.” He added, “Once the urgent sales run out, prices may rise again.”

Regarding Gangbuk, he explained that with the recent rapid absorption of listings and sharp price increases, a consolidation phase may be ahead. Kwon noted, “In Gangbuk, a dramatic decrease in supply has been accompanied by continuous hikes in asking prices with each transaction, making current prices burdensome for buyers. Rather than an outright price correction, I expect a consolidation period with a moderate pace of price increases.”

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