Seoul Apartment Pre-sale and Move-in Rights Also Face Trading Freeze

58 Transactions This Year, One-Fifth of Last Year's Level

[Asia Economy Reporter Noh Kyung-jo] As the downward trend in housing prices continues, transactions of apartment pre-sale rights and move-in rights in Seoul are also freezing up. Although a considerable number of union member move-in rights are coming out in complexes scheduled for move-in around the year-end and New Year, it is difficult to convert them into actual transactions.

According to the Seoul Real Estate Information Plaza on the 15th, a total of 58 apartment pre-sale rights and move-in rights in Seoul have been traded so far this year. Compared to last year (263 cases), this is about one-fifth. Monthly transactions have recorded single digits except for April (11 cases), and there were none in August. Even after more than half of this month has passed, the number remains '0'.

There were more transactions of move-in rights than pre-sale rights, which have stricter resale restriction periods. Trading pre-sale rights and move-in rights is one way to enter a new apartment when it is difficult to win due to low subscription points. It is also used for capital gains. However, as the market sentiment has cooled, it is a transaction cliff similar to general sales.

Major complexes with move-in rights transactions by district include Raemian One Bailey in Seocho-gu, Songpa Signature Lotte Castle in Songpa-gu, Gongdeok Xi and Mapo The Classy in Mapo-gu, Gaepo Presidents Xi in Gangnam-gu, and Dream Forest I-Park in Seongbuk-gu. Pre-sale rights were traded in places such as Jungang Heights Mokdong Felicity in Yangcheon-gu and Hyosung Villa Cheongdam 1012th in Gangnam-gu.

Most complexes recorded only 1 to 2 transactions, and there were quite a few cases of cancellations afterward. Some complexes have no transactions at all.

Heukseok River Park Xi in Dongjak-gu, scheduled for move-in in February next year, has many move-in rights available, but no transactions have been conducted. This complex, redeveloped from Heukseok 3 District, recorded an average competition rate of 95.9 to 1 for first-priority subscription and even had applicants with perfect scores.

A representative from nearby A Real Estate Agency said, "There are only phone inquiries now, but no actual transactions," adding, "Although it does not have a Han River view, the infrastructure is good, and since the area is a redevelopment zone, the environment is expected to improve, but perhaps due to interest rates, there are very few transactions."

Many view that pre-sale rights transactions have shrunk due to the longer resale restriction period. In response, the government recently decided to reduce the pre-sale rights resale restriction period from a maximum of 5 years to 3 years, but it is uncertain whether this will have a real effect. A representative from B Real Estate said, "Since this regulatory easing was announced together with the lifting of the adjustment area designation, many people are confused," adding, "We need to observe a bit more to see if it will be effective."

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