"Since the 9th, most homeowners have pulled their listings, and no new ones have come on the market," a real estate agent said.
Seoul's apartment transaction market is cooling sharply after the expiration of the capital gains tax moratorium for multi-home owners. Multi-home owners who failed to sell by the 9th and single-home owners expecting price gains are withdrawing their listings, causing transactions to plunge. As supply shrinks, prices are climbing in some complexes, with deals now closing at higher levels.
According to apartment big data firm Asil, Seoul apartment listings totaled 64,383 as of the 13th. That marks a 6% decline, or 4,112 units, from 68,495 on the 9th, the final day of the capital gains tax moratorium for multi-home owners. Seoul apartment listings peaked at 80,080 on March 21 before steadily declining, returning to the level of 63,745 recorded on February 13.
The head of a real estate agency inside the Mapo Prestige Xi complex in Yeomni-dong, Mapo-gu, said, "From February, all transactions were on properties from multi-home owners, but this week every agency is quiet without a single inquiry call." He added, "With no new listings since the 9th, homeowners who believe prices will rise further have pulled one 84-square-meter unit and two 59-square-meter units from the market."
As multi-home owner listings disappear, signs of a price rebound are emerging in some areas. At the Gaepo Xi Presidence complex in Gaepo-dong, Gangnam-gu, 59-square-meter units traded in the 2.8 billion to 2.9 billion won range in March and April, driven by distressed sales from multi-home owners. That was more than 10% below the record high of 3.35 billion won set in November last year.
The mood has shifted since the capital gains tax surcharge on multi-home owners was reinstated. A real estate agency head at the complex said, "Since the 9th, asking prices for 59-square-meter units have risen from the 2.8 billion to 2.9 billion won range to 3.1 billion to 3.2 billion won." He added, "Buyers are still anchored to the earlier distressed-sale prices, but sellers are now holding out for the previous record high, so no deals are being made." He continued, "Multi-home owners who failed to sell by the 9th plan to transfer the properties as gifts or hold them while watching the market, so low-priced listings are unlikely to appear."
The situation is similar in northern Seoul. At SK Bukhansan City in Mia-dong, Gangbuk-gu, the minimum asking price for 84-square-meter units was 750 million won earlier this month but has risen to 820 million won as multi-home owners pulled their listings.
With listings shrinking and prices rising, transactions have fallen quiet. According to the Saeol e-government civil affairs window, Seoul's land transaction permit applications totaled 208 as of the 12th, down about 55% from the daily average of 462 filed last month. In the Gangnam Three Districts (Gangnam, Seocho, and Songpa), where high-priced apartments are concentrated, daily average filings fell 63% to 27, from 73 the previous month.
