Trade drought still persists despite increase in sales
Higher interest rates and regulations, etc., are burdensome for buyers
The number of apartments for sale in Seoul has increased due to the middle of the capital gains tax for multi-family owners and a one-year grace period, which was implemented at the same time as the Yoon Seok-yeol government was launched, but the drought in transactions has not been resolved.
According to the real estate big data company Asil on the 19th, the tenth day after the transfer tax was implemented, the number of apartments for sale in Seoul increased by 8.1% compared to the 9th (55,509), the day before the enforcement. In the last month (April 19 to May 19), 5953 cases increased, of which 76.2% (4538 cases) were released within ten days of the inauguration of the new government. It is analyzed that multi-homeowners are offering their properties to relieve the burden of transfer and ownership tax.
Previously, under the Moon Jae-in administration, if a multi-family homeowner sold a house in a regulated area, he had to pay up to 75% of the gain on the transfer, and 82.5% including local tax. Multi-homeowners did not put up the property or turned it into a gift despite the high ownership tax burden, and as a result, the number of transactions decreased. In response, the new government deferred the heavy transfer tax for one year, hoping that multi-homeowners would put up for sale.
However, it seems that the increase in listings does not lead to actual transactions. A representative of a brokerage firm in Sanggye-dong, Nowon-gu said, “Only items for sale are on the market, and there are few active purchase inquiries.” Actual trading volume is also small. As the transfer tax and the deferred plan were announced on March 31, properties for sale began to appear in early April. Even taking into account that the reporting deadline (end of May) remains, it is significantly lower than the 4,000 cases in August last year. In May, the trading volume was only 374. It is interpreted that this is because it is difficult to raise funds due to the lack of loosening of loan regulations, and concerns about interest rate hikes have made it difficult for consumers to purchase. There is also a strong perception that house prices have risen sharply over the past two years and are still at their peak.
Song Seung-hyeon, CEO of Urban and Economic Cooperation, said, “There is a big difference in the fair price that buyers and sellers think.
Reporter Shin Jin-ho
