An apartment complex in Seongdong District, Seoul. (Yonhap)
SEOUL, Dec. 7 (Korea Bizwire) — Seoul’s apartment market has slipped into a sharp slowdown following the government’s October 15 real estate policy, with transaction volume dropping steeply and demand in key Han River districts all but evaporating, government data show.
According to the Ministry of Land, Infrastructure and Transport’s real transaction system, there were 2,372 registered apartment sales in Seoul as of December 6, excluding public-sector purchases. That represents a 72.6 percent decline from 8,663 transactions in October.
Although additional November contracts may still be reported through the end of this month, analysts say the final volume is likely to fall to around the level seen in August — roughly half of October’s total — as the chill in sentiment deepens.
A panoramic view of downtown Seoul as seen from Inwangsan Mountain. (Yonhap)
The downturn follows an expansive tightening of housing rules. Under the October 15 policy, all of Seoul has been placed under three layers of regulation — including designation as speculation zones and price-control areas — while apartments have been newly added to land transaction permit districts. The shift has sharply curbed mortgage lending and effectively blocked “gap investment,” a practice in which buyers acquire homes by taking over existing rental deposits.
District-level data show that the steepest declines occurred in Han River–belt neighborhoods such as Mapo, Seongdong, Gwangjin, Dongjak, and Gangdong — areas that had led price gains prior to the new restrictions. Buyers who rushed in before the policy change are now sitting on the sidelines, leaving a pronounced vacuum in demand.
Gwangjin District reported only 18 November transactions so far, down 91.4 percent from 210 in October. Seongdong fell 89.8 percent, from 383 to 39. Gangdong declined 89.6 percent, Mapo 89.2 percent — the four largest drops in the city.
Conversely, Gangnam, Seocho, Songpa and Yongsan — districts already subject to overlapping restrictions prior to the October policy — experienced milder pullbacks. Seocho’s registered volume fell just 29.4 percent from 218 to 154, and Gangnam’s declined 31.4 percent. With additional filings expected by month’s end, both districts could end November near or above their October levels.
An apartment complex in Seongdong District, Seoul. (Yonhap)
The broader chill shows no sign of lifting as December begins. Major banks, attempting to cap household lending totals for the year, have raised rates and in some cases suspended housing loans. As of December 6, only 105 sales had been reported citywide, and not a single transaction had been registered in Seongdong, Gangdong, Jongno or Yongsan.
Analysts say the combination of expanded regulatory zones and sharply reduced mortgage availability has left the market increasingly dependent on cash buyers, limiting liquidity and deepening the slowdown.
“With both gap investment and financing effectively cut off, buying a home now requires immediate cash,” said one Mapo-based real estate agent. “There are almost no purchase inquiries. The transaction freeze could continue well into the end of the year.”
M. H. Lee (mhlee@koreabizwire.com)
