“Just one month after the implementation of the October 15 housing market stabilization measures, the Seoul apartment market has effectively come to a ‘transaction cliff.’
According to real estate research firm Real Today, the number of Seoul apartment transactions between October 16 and November 11 was 2,320, a 77.4% decrease compared to the 10,254 transactions in the 27 days prior to the policy’s enactment.
The reduction was most significant in key areas along the Han River, such as Yeongdeungpo-gu (-93.9%), Gwangjin-gu (-90%), Seongdong-gu (-89.6%), and Gangdong-gu (-85.1%). In the Gyeonggi region, newly regulated areas like Bundang (-86.6%), Gwangmyeong (-85.4%), and Hanam (-80.9%) also saw sharp declines.
This policy reduced the loan-to-value (LTV) ratio for first-time homebuyers and conditional one-homeowners from 70% to 40%, and linked land transaction clearance zones to a mandatory two-year residency, effectively curtailing gap investment demand.
On the contrary, there was little change in transactions in existing regulated areas including Gangnam 3-gu (Gangnam, Seocho, Songpa) and Yongsan-gu. In Songpa-gu, the transaction volume decreased by only 2.9%, and Gangnam (-29.7%) and Seocho (-7%) remained relatively stable.
While the total transaction value in Seoul decreased by over 74% from 12.3 trillion won to 3.1 trillion won in a month, the average transaction price slightly increased to 1.36 billion won due to some high-priced properties being sold at record prices.
Meanwhile, the relaxation of regulations in some areas of Gyeonggi led to a balloon effect, with transaction volumes in Suwon Gwonseon-gu increasing by 67.6% and Hwaseong by 44.6%.
The Ministry of Land, Infrastructure, and Transport stated that “jeonse supply is actually increasing,” deeming the market instability limited. However, experts warn that the recent increase is due to existing housing supply, and a long-term decrease in supply could lead to a resurgence of jeonse shortages.”
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