Seoul Land Transaction Permit Applications Double Ahead of Capital Gains Tax Hike

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1. Land Transaction Permit Applications Hit 919 in One Day as Capital Gains Tax Deadline Approaches

- Key Summary: Ahead of the end of the multi-home owner capital gains tax moratorium on May 9, land transaction permit applications surged to 919 on May 4, double the April daily average of 462. Applications concentrated in mid-to-low-priced complexes under 1.5 billion won, including Nowon-gu (102 cases), Songpa-gu (60 cases), and Guro-gu (55 cases). Seoul apartment listings fell by about 10,000 units (12.42%) from the March peak of 80,080 to 70,133. At Sanggye Jugong Complex 10 in Nowon-gu, a 58-square-meter unit traded at 660 million won, 20 million won below the asking price, while Jamsil Trizium also saw transactions at discounts of 50 million to 100 million won below actual prices. Ham Young-jin, head of Woori Bank's Real Estate Research Lab, projected that "with distressed sales from multi-home owners in the final stage, prices will remain firm or rise."

2. Recognized Jeonse Fraud Victims Approach 40,000

- Key Summary: The Ministry of Land, Infrastructure and Transport (MOLIT) finalized approval of 855 cases through three plenary meetings of the Jeonse Fraud Victim Support Committee in April, bringing cumulative victim cases to 38,503 since the law took effect in June 2023. Of total cases reviewed, the victim recognition rate was 61.0%, with 22.2% rejected for failing to meet requirements. LH has purchased 8,357 damaged properties to date, acquiring a monthly average of 840 units through last month this year. Victims can convert auction gains into deposits for up to 10 years of residence and receive immediate payment upon move-out, while an interest-free installment repayment program of up to 20 years is available for those struggling to repay jeonse loans.

3. From Energy to Senior Housing: Mid-Sized Builders Seek New Business

- Key Summary: According to the Construction & Economy Research Institute of Korea, orders for mid-sized and small construction firms halved from 34.2 trillion won in 2021 to 15.7 trillion won last year. The combined urban redevelopment orders of the top five firms—Hyundai Engineering & Construction (000720), Samsung C&T (028260), GS E&C (006360), POSCO E&C, and HDC Hyundai Development—totaled 3.69 trillion won, 3.1 times the combined 1.18 trillion won of the sixth-to-tenth ranked firms. Bando Engineering & Construction is developing U.S. housing in LA's Koreatown as a recurring revenue model, while BS Hanyang expanded its energy and infrastructure revenue share from 24% in 2024 to 30% this year. Woomi Construction is pursuing a 346-unit long-term 20-year lease project for middle-class seniors at LH's Guri Galmae Station Silver Stay project, targeting move-in by the end of 2029.

4. Mia-dong 791 'Rapid Integrated Planning' Transforms into 525-Unit Residential Complex

- Key Summary: The Seoul Metropolitan Government will develop the Mia-dong 791 area (25,215.4 square meters) in Gangbuk-gu into a 525-unit residential complex up to 23 stories high through the Rapid Integrated Planning redevelopment project. The site had been restricted from development for 50 years, with self-initiated redevelopment as the only option, but project feasibility was strengthened through height restriction easing in the altitude district (average 45 meters) and a profitability correction coefficient of 2.0. The project was converted to a joint redevelopment method between the association and construction firm, with plans linked to Samyang Sageori Station and a living cluster development. The Seoul city government plans to accelerate the project by supporting follow-up procedures from redevelopment plan drafting and notification to association establishment approval.

5. Yongin Gorim 'Dongmun The East' Draws Attention as GTX-A Beneficiary Complex

- Key Summary: Dongmun Construction will supply 'Yongin Gorim Dongmun The East,' a 350-unit complex across six buildings up to 23 stories high, in Gorim-dong, Cheoin-gu, Yongin, Gyeonggi Province. The units consist of small-to-medium sizes: 59 square meters (74 units), 75 square meters (170 units), and 84 square meters (106 units). The complex offers access to major business districts including Giheung and Pangyo via Gojin Station on the Everline and Guseong Station on GTX-A, with 20-minute access to Samseong Station from Guseong once the line is fully operational. Gojin Elementary, Gojin Middle, and Gorim High schools are within walking distance within a 500-meter radius, along with living infrastructure including Hanaro Mart and E-Mart.

6. Government Targets Farmland Speculation with Stronger Disposal Orders

- Key Summary: The Ministry of Agriculture, Food and Rural Affairs reported a full farmland inspection plan utilizing a supplementary budget of 58.8 billion won at the 20th Cabinet meeting, launching the first-ever comprehensive status check. The core focus is strengthening penalties after detection, making disposal orders—previously at local governments' discretion—mandatory and expanding the scope to allow immediate disposal orders for violations within land transaction permit zones. Name transfers to spouses or direct family members to avoid disposal orders will also be blocked, and the government plans to induce swift sales through reduced grace period provisions and increased enforcement penalties. President Lee directly pointed out the problem of disposal orders being effectively neutralized by asking prices up to five times market value and ordered forced purchase measures, significantly expanding risks for non-farmers holding farmland for investment purposes.