Ranking of Sales Volume Changed After One Year... Gangnam-gu Surpasses Nowon-gu in Yeongkkeul Buying

Low-to-Mid Price Concentrated Areas like Nowon and Gangseo
Transaction Volume Rankings Both Decline from Jan-Apr This Year
Buyers Strengthen Selection Process
Shift Back to 'Smart Single Property' Investment

[Asia Economy Reporter Hwang Seoyul] Due to the effects of the sorting phenomenon, loan regulations, and interest rate hikes, the ranking of apartment sales transaction volumes by Seoul autonomous districts has changed. Nowon-gu, which ranked first in transaction volume last year as buyers who borrowed to the limit flocked in, has given up its position to Gangnam-gu this year.

According to the Korea Real Estate Board's apartment sales transaction status as of the 28th, the number of apartment sales transactions in Gangnam-gu from January to April this year (based on the reporting date) was 837, rising from 3rd place (1,171 transactions) in the same period last year to 1st place. Nowon-gu, which was 1st last year (1,953 transactions), dropped to 2nd place with 376 transactions this year, a decrease of 80.75% in transaction volume.

The fortunes of the two districts also diverge in sales prices. Nowon-gu's apartment sales price index fell from 105.8 in January this year to 105.4 last month. On the other hand, except for February this year, Gangnam-gu's index rose every month, increasing from 105.9 to 106.1 during the same period.

Not only Nowon-gu but also districts with a concentration of mid- to low-priced apartments have mostly fallen in transaction volume rankings since the beginning of this year. Gangseo-gu, which ranked 2nd last year (1,214 transactions), ranked 5th this year with 298 transactions. Seongbuk-gu, ranked 6th (1,029 transactions), dropped to 13th place. However, Seocho-gu, classified as one of the Gangnam 3 districts, rose one rank from 5th place (1,041 transactions) last year to 4th place (349 transactions) this year, and Songpa-gu moved up one rank from 7th (954 transactions) to 6th (258 transactions).

This appears to be the result of buyers' intensified sorting behavior. Instead of 'panic buying,' the focus has shifted to owning a 'smart single property,' leading demand to move toward districts where housing prices are expected to continue rising. Nowon-gu and Seongbuk-gu, where aggressive borrowing buyers surged last year, saw housing prices rise excessively, leaving a strong perception of a peak. The average apartment sale price in Nowon-gu, which was 490 million KRW in January last year, rose 41.84% to 695 million KRW in July last year. In contrast, the Gangnam 3 districts, which have many redevelopment issues, riverside locations along the Han River, and premium apartments, still maintain expectations that prices will continue to rise even during the real estate downturn.

Another reason analyzed is that real buyers gave up purchasing due to difficulties in financing caused by loan regulations and the overlapping interest rate hikes. Nowon-gu and Seongbuk-gu recorded proportions of buyers in their 20s and 30s?who are highly affected by financial policies?at 55.59% and 49.22% respectively among all buyers this year. This proportion is higher than in Gangnam (23.3%), Seocho (33.81%), and Songpa (35.27%), where many houses exceed the 1.5 billion KRW mortgage loan regulation threshold and thus are less affected by loan regulations.

There are also voices suggesting that real demand will increase in undervalued areas following the implementation of the Yoon Seok-yeol administration's real estate normalization measures. Yoon Sumin, a real estate specialist at NH Nonghyup Bank, said, "In the second half of the year, there is a possibility that real demand will enter relatively affordable districts with residential convenience, such as Jungnang-gu and Seodaemun-gu."

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