Seoul Sees Record Land Transaction Permit Applications in March Amid Tax Deadline Rush

Seoul's real estate market is showing complex dynamics, with a record number of land transaction permit applications filed in March, driven by an impending tax deadline. The Seoul Metropolitan Government reported a significant 69.7% jump in applications, reaching 7,653, the highest monthly figure since the city-wide land transaction permit system was implemented last October. This surge is largely seen as a response to the expiration of a tax grace period for multi-homeowners, prompting them to sell properties before the deadline.

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Apartment land transaction permit new applications recorded 7,653 cases, an increase of 69.7% compared to the previous month (4,509 cases) as of the end of last month.

Analysis from the city indicates a shift in application proportions. Areas like Gangnam, Yongsan, and the Han River belt, which had previously seen a decline in applications, experienced an uptick. This is directly linked to the concentration of multi-homeowner properties in these affluent districts. Conversely, applications in northern and western Seoul saw a slight decrease. The data suggests that the tax burden on multi-homeowners, particularly in high-value areas, is a significant factor influencing market behavior.

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The number of land transaction permit applications last month was the largest monthly application volume since the implementation of the city-wide land transaction permit system.

Despite the record number of applications, the overall property price trend in Seoul saw a marginal decrease of 0.08% in March. While mid-to-low priced areas and outer districts, driven by genuine demand, continue to see modest price increases, the high-priced luxury markets in Gangnam and along the Han River are experiencing downward pressure. This is attributed to an increase in properties listed by multi-homeowners facing stricter regulations and a market increasingly dominated by distressed sales. The city's real estate policies continue to exert a notable influence on market activity and price stabilization.

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The city analyzes that the applications increased as properties subject to the expiration of the multi-homeowner capital gains tax deferral (April 9) were concentrated.