Seoul Apartment Listings Increase by 30%... Buyers and Sellers Begin Tug of War

As the real estate market shows signs of recovery, selling demand increases
After quick-sale properties are exhausted and prices rise, buyers adopt a wait-and-see stance
Analysis suggests multi-homeowners list properties due to reverse jeonse burden

The number of apartment listings in Seoul has increased by more than 30% compared to the beginning of the year, surpassing 65,000 units. As the real estate market showed signs of recovery following the January 3rd measures, more owners saw this as the 'right timing to sell' and put their homes on the market. However, after the quick-sale properties were exhausted, there has not been enough buying demand to meet the higher asking prices, leading to an accumulation of listings.

View of Seoul city apartments from Lotte World Tower Seoul Sky Observatory [Image source=Yonhap News]

According to Apartment Real Transaction Price (Asil), a real estate big data platform, the number of apartment sale listings in Seoul was recorded at 65,562 units as of the 18th. This represents an increase of 15,788 units (31.7%) compared to the day the January 3rd measures, which significantly eased real estate regulations, were announced (49,774 units).

The number of apartment listings in Seoul surpassed 55,000 units on February 17, 60,000 units on March 24, and then sharply increased to over 65,000 units on the 14th of this month. In Gangnam-gu, considered a barometer of Seoul housing prices, listings rose dramatically from 3,969 units on January 3 to 5,926 units on June 16, an increase of 1,957 units (49.31%).

The increase in Seoul apartment listings is due to more homeowners viewing the current period as an optimal time to sell. After the January 3rd measures, all areas except Gangnam, Seocho, Songpa, and Yongsan districts were removed from regulated zones, and loan and tax regulations were significantly eased, gradually reviving buying demand. The volume of apartment transactions in Seoul, which was only 559 units in October last year, has steadily increased to 2,458 units in February, 2,984 units in March, and 3,187 units in April. May is currently at 2,956 units, with a high possibility of exceeding 3,000 units.

As signs of market recovery became clear, many sellers raised their asking prices when listing their homes. However, experts explain that after the quick-sale properties were sold, there are not many buyers willing to accept the higher asking prices, causing listings to accumulate in the market. Yeo Kyung-hee, senior researcher at Real Estate R114, said, "It is judged that listings have accumulated because actual buyers are cautious about properties with raised asking prices after the quick-sale properties were sold."

Some analysts also suggest that reverse jeonse (rental deposit) situations have influenced the increase in Seoul apartment listings. Multi-homeowners who cannot return existing deposits with new deposits have decided to sell their homes, increasing the number of listings. Landlords who engaged in gap investment have no choice but to either take out loans or sell their homes if they cannot cover the deposit difference caused by reverse jeonse. Cha Sang-wook, CEO of Connected Ground, said, "The most expensive jeonse contracts in history will expire at the end of this year, and homeowners will have to return tens of millions of won to tenants," adding, "Panic selling due to reverse jeonse could occur, leading to a decline in housing prices."

However, opinions vary among experts regarding the impact of reverse jeonse on the sales market. Researcher Yeo explained, "Especially in Seoul apartments, the jeonse-to-price ratio is low, and the perception of a recent price bottom is spreading, so the possibility of selling listings due to reverse jeonse issues still appears low."

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