Seoul Apartment Land Transaction Permit Applications Down 30%... Decline in Three Gangnam Districts and Hangang Belt

"Slowdown in Core Area Transactions... Shift Toward Outlying Districts"

Application Prices Up 0.57% from Previous Month

An apartment complex in downtown Seoul. Photo by Yonhap News Agency

Last month, the number of new applications for apartment land transaction permits in Seoul decreased by nearly 30% compared to the previous month. This decline was mainly attributed to fewer applications in the three Gangnam districts and the Hangang Belt. While application prices continued to rise, the upward trend in core high-priced areas slowed, whereas buying activity persisted in mid- to low-priced regions.

According to the Seoul Metropolitan Government on March 18, the number of new apartment land transaction permit applications in February stood at 4,521, a 29.8% drop from the previous month. The number of land transaction permits processed last month totaled 5,765, which is expected to lead to future contracts and be reflected in the number of reported sales. By the end of last month, the cumulative number of apartment permit applications was 20,895, of which 18,846 (90.2%) had been processed. Since the October 15 Real Estate Measures last year, the entire city of Seoul has been designated as a land transaction permit zone, requiring buyers to obtain permission from the relevant municipal or district office to purchase apartments exceeding 6 square meters in residential areas.

Examining the regional distribution of last month's permit applications, the proportion in the three Gangnam districts (Gangnam, Seocho, Songpa), Yongsan District, and the seven Hangang Belt districts (Gwangjin, Seongdong, Mapo, Dongjak, Yangcheon, Yeongdeungpo, Gangdong) all decreased. The share for the three Gangnam districts and Yongsan fell from 12.3% in January this year to 11.2% last month. The share for the seven Hangang Belt districts also dropped from 24.1% to 21.5% during the same period. Stricter lending regulations appear to have weakened buying demand for high-priced apartments, which in turn has affected the proportion of permit applications in the three Gangnam districts, Yongsan, and the seven Hangang Belt districts.

In contrast, the share of applications in the ten districts of northern Seoul (Jongno, Jung, Gangbuk, Nowon, Dobong, Dongdaemun, Seongbuk, Jungnang, Seodaemun, Eunpyeong) and the four districts in southern Seoul (Gangseo, Gwanak, Guro, Geumcheon) increased. The proportion for the ten northern districts rose from 45.2% to 47.5%, while the four southern districts increased from 18.4% to 19.8%. The city explained, "While transactions in core areas with concentrations of expensive apartments are slowing, activity is moving toward mid- to low-priced and outlying areas where the price burden is relatively lower."

An analysis of application prices submitted last month showed a 0.57% increase compared to the previous month. Although the rise in core high-priced areas has slowed, buying activity for actual use in mid- to low-priced and outlying areas continues, sustaining an upward price trend.

By region, the ten northern districts and the four southern districts (Gangseo, Gwanak, Guro, Geumcheon) saw increases of 1.05% and 1.55%, respectively, compared to the previous month—higher than the overall increase for Seoul. With the mortgage loan limit restricted to a maximum of 600 million won for homes priced at 1.5 billion won or less, demand from actual buyers has become concentrated on more affordable apartments and those in outlying areas, where access to funds is relatively easier.

On the other hand, the rate of increase for the three Gangnam districts and Yongsan fell by 1.27% from the previous month, and the rate for districts near the Hangang Belt dropped by 0.09%. The city stated, "Recently, with the end of the temporary suspension of heavier capital gains taxes for multiple home owners and the possibility of stricter regulations for multiple property owners being announced, there has been an increase in listings from these owners. In particular, the decrease in applications and transactions focused on urgent sales in major areas such as Gangnam appears to have contributed to this trend."

In January 2026, the actual transaction price for apartment sales in Seoul rose by 1.59% compared to the previous month. On a year-on-year basis, it was up 15.12%.

The city explained the continued rise in sales prices as follows: "The application prices for land transaction permits in December last year and January this year, which saw steep increases, are now being reflected in actual transaction prices with a time lag, ahead of the official implementation of stricter regulations on multiple property owners at the end of January."

All residential areas—including the urban center zone (Jongno, Yongsan, Jung Districts) and the southeastern zone (Gangnam, Seocho, Songpa, Gangdong Districts)—recorded price increases, with the urban center zone leading the trend at a 3.32% increase from the previous month. By apartment size, large units (over 135 square meters) saw the biggest jump, up 4.07%.

In January 2026, the actual transaction prices for apartment leases (jeonse) in Seoul rose by 0.27% compared to the previous month. The northwestern region (Eunpyeong, Seodaemun, Mapo Districts) recorded the highest increase at 1.35%. The northeastern region (Gangbuk, Dobong, Nowon, Seongbuk, Jungnang, Dongdaemun, Seongdong, Gwangjin Districts) fell by 0.09%. While most apartment sizes saw increases, smaller units (over 40 square meters and up to 60 square meters) recorded the highest rise at 0.78%.

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