[Reporter’s Notebook] Temporary Two-Homeowners Trapped by Transaction Cliff

The number of autonomous districts in Seoul where the average apartment sale price exceeds 50 million KRW per 3.3㎡ has more than doubled in one year. As of November last year, only Gangnam-gu, Seocho-gu, and Songpa-gu among the 25 autonomous districts in Seoul had average apartment sale prices exceeding 50 million KRW per 3.3㎡, but last month Yongsan-gu, Seongdong-gu, Mapo-gu, and Gwangjin-gu were added, making a total of seven districts. The photo shows the view of Seoul apartments from 63 Square. Photo by Kim Hyun-min kimhyun81@

"I neither have the money nor the will as a multi-homeowner, yet I am suddenly on the brink of becoming a credit defaulter."

Mr. A, a worker in his 40s living in Seoul, was a single-homeowner but decided to move due to his children's education and purchased a new home in March this year for what is called a 'trade-up.' Since there were about nine months left until the final payment, he put his previous home on the market and also took out a mortgage loan in June for the purpose of purchasing the new home, paying the intermediate payment. The problem is that the old house shows no sign of selling at all. If the old house does not sell by the end of the year, he will face a situation where he cannot pay the remaining balance for the new home purchase nor repay the bank loan. Mr. A lamented, "I lowered the asking price by more than 100 million won, visited dozens of real estate agencies until my feet were worn out, and even paid tens of thousands of won for consultations on 'how to sell a house well,' but not a single person has come to see the house."

The outcry from genuine buyers who have become temporary two-homeowners like Mr. A is growing louder. This is due to the deepening 'transaction cliff' phenomenon caused by fatigue from the rapid rise in apartment prices, interest rate hikes, and loan regulations. As buying demand decreases, inventory listings are piling up. According to the real estate information company Asil, the number of apartment sale listings in Seoul, which was below 40,000 until mid-October, reached 46,000 as of this date. Licensed officials in the Seoul area unanimously say, "Listings have increased, but there are no buyers."

Temporary two-homeowners are facing a sudden blow this year with the imposition of comprehensive real estate tax surcharges because the tax rates for multi-homeowners apply to them, even though they are not owners of high-priced homes or speculative multi-homeowners. If they fail to dispose of their existing home within the prescribed period after taking out a mortgage loan, the loan will be recalled, and they will be barred from obtaining related loans for three years. This is due to the reduction of the disposal and move-in obligation period to six months under last year's June 17 measures.

Despite various regulations being announced, there have been continuous calls to open an exit to facilitate smooth home transactions. However, the government, turning a deaf ear, repeatedly claims that "housing prices have peaked" and insists on a stable downward trend. On the other hand, the market is forecasting that housing prices will maintain an upward trend next year. Recently, due to the discord between the government and the ruling party, conscious of next year's presidential election, innocent victims continue to emerge. Policies have been introduced urging people to sell their homes, but I want to ask who will take responsibility for making it impossible to sell even if they want to.

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