"I'll Just Move In": Only 149 More Seoul Apartments Listed Despite Government's Planned Regulations

Non-Resident Single-Homeowner Listings Remain Quiet
Skepticism Over Homeowners Selling Amid Jeonse Shortage
High-Priced Homes See Owners Preparing for Self-Occupancy

"No one is looking to sell their home, only people wanting to move in." (A realtor near Apgujeong-dong)

As the government has announced plans to introduce regulations targeting non-resident single-home owners, the market has yet to see a clear increase in properties for sale. Analysts point out that a decline in the number of available new homes and the ongoing jeonse (long-term lease) crisis have made it difficult for single-home owners to sell their properties. In particular, in the case of high-priced homes, there are already increasing instances of owners moving in themselves and evicting tenants, indicating that non-resident single-home owners are opting to hold rather than sell.

According to Asil, a real estate big data company, as of April 17, there were 75,650 apartment listings for sale in Seoul. In the ten days following President Lee Jaemyung's order at the April 6 Cabinet meeting to review 'sales with tenants' for single-home owners, the number of listings increased by only 149 from 75,500. In contrast, after President Lee officially announced the end of the temporary suspension of the capital gains tax surcharge for multi-home owners on January 23, the number of listings increased by 855 from 56,219 to 56,984 over ten days. This recent increase is relatively marginal.

Apartments in the area as seen from Seoul Sky in Songpa-gu, Seoul. Photo by Yonhap News Agency

However, since the government has not yet officially permitted sales with tenants for non-resident single-home owners, at present, only those whose lease contracts have expired can sell their homes. If sales with tenants become permitted, the number of properties for sale could increase further. In addition, financial authorities are considering tightening jeonse loan regulations for non-resident single-home owners, which is expected to intensify pressure to sell.

Double Trouble: Jeonse Crisis and Decreased Supply... Rush to Move into High-Priced Homes

Yonhap News Agency

Nevertheless, prevailing opinion in the market is that these measures are unlikely to result in a significant increase in properties for sale. This is because the number of new homes available for occupancy in Seoul is expected to decrease sharply next year compared to this year, and the jeonse shortage has made it difficult to even find rental homes. According to joint data released by Korea Real Estate Board and Real Estate R114, the number of new apartment units scheduled for occupancy in Seoul next year is expected to be 17,197, a 36% decrease from this year’s 27,158 units. In other words, even if single-home owners sell their homes, there will not be many new properties for them to purchase.

The manager of a real estate agency in Jamsil-dong, Songpa-gu said, "So far, there have been no cases of current non-resident single-home owners putting their homes up for sale. The moment someone sells their home, they become homeless, and with rental prices having surged so much, it is expected to be difficult for them to sell at this time."

The manager of a real estate agency near Geumho-dong, Seongdong-gu also commented, "Sales with tenants have not been permitted yet, and the details of the regulations have not been clarified, so no owners have listed their homes for sale. If single-home owners put their homes on the market, they will be forced back into the rental market, so they are unlikely to sell easily."

In ultra high-priced apartment complexes, there are even signs that owners are preparing to move in themselves as lease contracts expire. A realtor near Apgujeong Hyundai Apartment explained, "With news reports that the government will regulate non-resident single-home owners, more clients are considering whether they should move in themselves. In fact, there have been multiple cases of landlords who previously rented out their homes and lived overseas or in other apartments returning to occupy their property when the lease ends or is renewed."

Experts believe that there is little chance of a large number of non-resident single-home owners rushing to put their properties on the market in the short term. Unlike multi-home owners facing the end of the capital gains tax suspension, non-resident single-home owners do not have a set deadline by which they must sell. Nam Hyukwoo, a researcher at Woori Bank Real Estate Research Institute, stated, "Non-resident single-home owners, unlike multi-home owners, are not subject to time-limited regulations, so it is unlikely that a large volume of their properties will be released onto the market at any particular time."

However, there are projections that the number of properties for sale could vary depending on the strength of the regulations. Nam added, "Non-resident single-home owners may later switch to monthly rent or move into their own property, so it is uncertain whether a large volume of homes will come onto the market immediately. The impact on the market will depend on the direction of tax reforms and the intensity of the regulations."

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