Gap Investment in Gangnam 4 Districts Halved... Effect of 6·17 Measures

Status of Gap Investment by Kim Sang-hoon, MiTongDang Lawmaker
Seoul Gap Investment Plummets... -33% in One Month

[Asia Economy Reporter Moon Jiwon] Since the government's June 17 real estate measures to recall jeonse loan funds when purchasing apartments over 300 million KRW in regulated areas, 'gap investment' in Seoul has decreased by 33%. In particular, the gap investment ratio in the Gangnam area has sharply dropped to about half.

According to gap investment status data received by Kim Sang-hoon, a member of the Future United Party, from the Ministry of Land, Infrastructure and Transport on the 24th, the total gap investments in Seoul decreased by 33%, from 6,940 cases in June to 3,638 cases last month. The number of gap investment cases was counted when purchasing homes over 300 million KRW and the buyer's fund procurement plan stated 'for rental purposes after succession of the jeonse deposit.' In other words, it refers to cases where the property was purchased with jeonse but not occupied by the buyer.

Gap investments in the four Gangnam districts (Gangnam, Seocho, Songpa, and Gangdong) totaled 860 cases last month, a 54.4% decrease compared to 1,885 cases in June. Gangnam-gu decreased from 500 to 229 cases, Seocho-gu from 368 to 224 cases, Songpa-gu from 624 to 211 cases, and Gangdong-gu from 393 to 196 cases.

Earlier, the government announced through the June 17 measures that jeonse loan funds would be recalled when purchasing apartments over 300 million KRW in speculative overheated zones and regulated areas, and this was implemented starting from the 10th of last month.

In the Gangnam area, the government designated Daechi, Samsung, and Cheongdam-dong in Gangnam-gu and Jamsil-dong in Songpa-gu as land transaction permission zones, completely banning purchases except for actual residence purposes, which is interpreted as a factor further reducing gap investment cases.

The ratio of gap investments to total transactions in Seoul also decreased. From March, the gap investment ratio in Seoul had been increasing monthly, reaching 40.8% in June, but dropped to 36.1% last month. Although the total number of apartment contracts in Seoul increased by 37%, gap investments actually decreased. During the same period, the gap investment ratio in Gangnam-gu fell from 66.0% to 56.5%, and in Songpa-gu from 53.1% to 46.2%.

However, in the outskirts of Seoul, where many mid- to low-priced complexes are concentrated, a balloon effect phenomenon appeared with gap investments focusing there. For example, Unit 1 of Sindong-A Apartments in Dobong-gu, Seoul, with an exclusive area of 53.16㎡, was traded for 355 million KRW on the 27th of last month, rising about 67 million KRW in about a month. This is because after the June 17 measures, buying demand shifted from high-priced complexes to mid- to low-priced complexes under 300 million KRW.

This content was produced with the assistance of AI translation services.