Seoul Real Estate Market Update: High-End Apartment Transactions Exceed 20%, Overall Transaction Volume Rises

Recent trends in Seoul's housing market reveal a significant increase in high-end apartment transactions

Recent trends in Seoul's housing market reveal a significant increase in high-end apartment transactions, with properties exceeding 15 billion KRW making up over 20% of all sales—a record high. Additionally, overall transaction volumes have surged, highlighting notable changes in the city's real estate dynamics. This article explores the recent surge in housing transactions and what the future might hold.

In June, Seoul's housing transaction volume reached 10,784 cases, surpassing the 10,000 mark for the first time since August 2021. Notably, apartment transactions alone amounted to 7,362, marking the highest volume since December 2020, when transactions peaked at 7,745.

Key trading areas include Songpa-gu, which led with 731 transactions, followed by Gangdong-gu (700 transactions) and Gangseo-gu (661 transactions). Gangnam-gu (595 transactions) and Seocho-gu (562 transactions) also ranked high, indicating a continued concentration of activity in the so-called Gangnam Three Districts. Mapo-gu (562 transactions) and Seongdong-gu (539 transactions) also saw significant trading volumes, each exceeding 500 cases.

However, in July, the number of Seoul apartment transactions declined to 4,186. This decrease is expected, as July and August are typically considered off-seasons for real estate transactions. Choi Hwan-seok, from Hana Bank's Real Estate Investment Advisory Center, noted, "Transaction volumes may increase again during the fall moving season."

Noteworthy is the rise in transactions of high-end apartments. In the first half of this year, apartments priced over 15 billion KRW made up 20.45% of all sales, the highest percentage since the start of real transaction data in 2006. Additionally, apartments exceeding 9 billion KRW accounted for 54.02% of transactions. Ham Young-jin, from Woori Bank's Real Estate Research Lab, stated, "The trend of moving toward newly built areas with high price recovery potential is expected to continue for the time being."

The Seoul real estate market is experiencing a notable increase in high-end apartment transactions, with the percentage of ultra-expensive properties reaching new heights. Although transaction volumes have temporarily decreased, they are likely to rebound in the upcoming fall moving season. Keeping an eye on high-end property transactions and regional price trends will be crucial for navigating the evolving real estate landscape in Seoul.