June Seoul Apartment Sales Plummet to Half of May Levels

The Seoul apartment market experienced a sharp downturn in June, with sales volume dropping to less than 60% of the previous month's figures. According to data from the Ministry of Land, Infrastructure, and Transport's real transaction disclosure system, only 4,783 apartment sales were reported in Seoul by June 19th. This represents a significant decrease from May's 8,739 transactions, which had been the highest this year, partly due to a surge in sales before the implementation of increased capital gains taxes for multiple homeowners on May 10th. The current trend suggests July's sales may also fall below June's figures, with only 1,287 transactions reported by the 19th. The decline was most pronounced in districts like Gangdong-gu, which saw a 66.7% drop from May, followed by Yongsan-gu (-64.7%). The affluent Gangnam three districts, Seocho (-60.1%), Songpa (-59.8%), and Gangnam (-56.2%), also experienced substantial decreases. This slump is linked to homeowners withdrawing properties from the market in anticipation of potential tax policy changes. Conversely, areas with a higher concentration of mid-priced apartments, such as Yeongdeungpo-gu (-24.7%), Nowon-gu (-26.3%), and Dobong-gu (-26.8%), saw relatively smaller decreases, indicating continued activity in the lower to mid-price segments.