Apartment listings in Seoul are piling up, especially in the three Gangnam districts. This month saw the largest increase in listings so far this year, and among the new listings, one out of five is located in the "Gangnam 3 Districts" (Gangnam, Seocho, Songpa). This is a result of a sharp decline in transaction volume in these areas.

Experts explained that the excessive rise in apartment prices in prime locations during the first half of the year, along with tighter mortgage loan limits, have contributed to this trend. However, they believe that even if listings accumulate in the Gangnam 3 Districts, housing prices are unlikely to fall.

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According to real estate big data platform "Asil" on the 24th, there were 87,981 apartment listings in Seoul as of the 23rd. This is an increase of about 7,400 units from a month ago (80,589 units on the 23rd of last month), showing a rapid accumulation. The buildup of listings in Seoul, where transactions were active from January to June this year, began in July (79,050 units).

Of the 7,392 new listings added over the past month, the largest share was in the Gangnam 3 Districts (19.8%, or 1,421 units). This was followed by "Nodogang" (Nowon, Dobong, Gangbuk) at 13.0% (959 units), "Mayongseong" (Mapo, Yongsan, Seongdong) at 9.8% (726 units), and "Geumgwanggu" (Geumcheon, Gwanak, Guro) at 9.0% (664 units).

On the 24th, as apartment transactions shrink due to loan regulations and other factors, sales and rental listings continue to accumulate. Flyers for sales and jeonse listings are posted at a real estate office in Gangnam, Seoul.

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The decrease in apartment transactions in Seoul was the reason for the surge in listings. According to the Seoul Real Estate Information Plaza, apartment transactions in Seoul last month (as of the 23rd) totaled 2,807, a drop of more than 3,000 from the previous month (6,300). By region, the decline in transaction volume from August to September was as follows: Gangnam 3 Districts down 726 (1,145 to 419), Nodogang down 440 (824 to 384), Mayongseong down 419 (705 to 286), and Geumgwanggu down 229 (465 to 236).

Experts diagnosed that the government's loan regulations have started to cause an accumulation of listings. Ham Youngjin, head of Woori Bank's Real Estate Research Lab, and Kim Jaekyung, director of Toomee Real Estate Consulting, said, "As the financial authorities implemented the second phase of the stress-based debt service ratio (DSR) last month, tightening the money supply and raising the bar for buyers, transactions have slowed." Ham added, "Since July, as transaction volume peaked and buyers grew fatigued by rising prices, this also contributed to the increase in listings."

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However, they predicted that even with the increase in listings centered on the Gangnam 3 Districts, it would be difficult for housing prices to fall. Kim said, "Even though transaction volume in Gangnam has decreased and listings have increased, there are still complexes setting new record-high prices." Ham added, "With expectations that the base interest rate will continue to be cut next year, demand to move up to prime locations may increase. In this situation, it is difficult for homeowners to lower their asking prices, so it is unlikely that housing prices will fall." He also said, "With jeonse prices still on the rise, even if listings increase, apartment prices are being supported."

Meanwhile, as listings in the Gangnam 3 Districts increased, some areas have seen transactions at lower prices. According to the Ministry of Land, Infrastructure and Transport's actual transaction price disclosure system, a 63m² unit in Hanyang 1st Complex, Apgujeong-dong, Gangnam-gu, was sold for 3.35 billion won on the 11th. This is 50 million won less than the previous transaction for the same unit type (3.4 billion won) on August 27. In Garak-dong, Songpa-gu, a Helio City 84m² unit was sold for 2.33 billion won as of the 12th, more than 100 million won lower than last month's highest price for the same unit type (2.435 billion won).

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