Seoul’s collective housing market, including apartments and officetels, saw brokerage transactions climb to 1,980 last month, nearing 2,000 and marking the highest monthly total in three years and four months. This surge outpaces March’s 1,345 deals by 47.2%, fueled by anticipation of stricter capital gains taxes.
National and Seoul Trends Surge
Nationwide, brokerage transactions for similar properties reached 5,560, the most since December 2022’s 9,342. Single-family home deals also rose, but brokerage activity dominated due to tax burdens on direct sales through early May.
Direct apartment transactions in Seoul gained momentum too. Registrations jumped from 109 in February to 185 in March and 234 in April, overtaking the prior month. Of 4,544 nationwide registrations in April, just 5.15% involved direct deals without brokers.
Top Districts Lead the Boom
Jongno-gu topped the list with 161 brokerage transactions, nearly double March’s 82—a 96.3% increase. Yangcheon-gu followed at 135, Nowon-gu at 118, Seocho-gu at 115, Yongsan-gu at 106 (up 95.3% from 54), Gangnam-gu and Dongjak-gu at 104 each, and Gwangjin-gu at 100.
April estimates show Seocho-gu with the highest direct deal ratio at 15.8%, followed by Gangnam-gu (7.8%), Yeongdeungpo-gu (7.3%), and Gwangjin-gu (7.3%).
Market Drivers and Expert Views
Buyers prioritize central locations despite high mortgage rates, viewing them as solid investments amid special factors like family ties. Experts note that three-month price gains near 30% keep interest burdens manageable under 3 million won, supporting reasonable pricing and sustained brokerage volume.
A Seocho-gu real estate agent observed, “Ahead of capital gains tax hikes, multi-homeowners rushed to transfer properties last month—it’s commonplace. Sale prices have room to climb another 300 million won, making now the ideal time for such moves.”
Tax consultant Kim Jong-pil added, “Capital gains tax bases on contract market value regardless of declared price, offering limited savings. Yet it eases buyer funding burdens. Handing over cherished homes via family transfer avoids brokerage fees and aligns with last month’s demand surge.”
