Seoul apartment land transaction applications drop for 3rd month, price hikes slow

Applications for land transaction permits in Seoul apartments have fallen for three months straight, with the pace of price increases also slowing considerably in July. The city recorded 4,681 new applications last month, down 11.7% from June and 47.5% from April's peak of 8,911. This marks the third consecutive monthly decline since April.

The steepest drop in applications was seen in the Gangnam 3 districts and Yongsan district, which saw a 21.6% decrease. Their share of total applications also fell to 11.6% from 13.0%. Conversely, the northern and southwestern districts saw their shares increase, indicating a shift in market focus.

While the average application price rose 1.41% in July, this was a slower increase than the 2.67% seen in June. The Gangnam 3 districts and Yongsan saw a modest 0.38% rise, while the northern and southwestern areas experienced higher growth rates of 1.78% and 2.29%, respectively. Seoul city officials attribute this to sustained demand for mid-priced apartments, even amidst loan restrictions.

The data predates the government's August 3rd tax reform announcement. Seoul anticipates that the full impact of these new policies, along with recent housing supply measures, will become evident in August's transaction permit statistics, offering the first glimpse into the market's reaction.