Seoul's Luxury Apartment Market Faces Sharp Decline

A recent survey highlights a dramatic decrease in high-price apartment transactions in Seoul, following the government's introduction of stringent loan regulations. These new rules cap mortgage loans at 600 million won for properties in the metropolitan area and other regulated regions.

Before and After the Regulation

Analysis by real estate platform Zigbang shows a 74% drop in high-price transactions in the two weeks post-announcement compared to the prior two weeks. Previously, high-price transactions accounted for 24.3% of all apartment sales, with a notable rise in prices across key districts.

Impact Across Districts

Districts like Seongdong-gu and Mapo-gu saw reductions of 84% and 87%, respectively, in high-price transactions. The cooling market has prompted a cautious stance among buyers and sellers, with potential shifts in demand towards less regulated areas.

Market Outlook

Experts suggest the market is in a period of observation, with possible dispersion of demand to regions with lighter regulations. The full impact of these changes remains to be seen, as the market adjusts to the new financial landscape.