Applications for land transaction permits in Seoul, a leading indicator of apartment sales, edged higher in September, with analysts pointing to a partial easing of the comprehensive real estate holding tax as a possible factor. Prices rose most sharply in the city's outer districts.
The Seoul Metropolitan Government said on the 15th that new permit applications for Seoul apartments totaled 3,678 in September. The figure marked the first increase in five months, following four straight monthly declines after April.
September applications were up 24.1%, or 715 cases, from 2,963 the previous month, but were 58.7%, or 5,218 cases, below the 8,896 filed in April. The city government said the increase may reflect the partial easing of plans to expand the comprehensive real estate holding tax burden, which was included in the government's tax reform proposal announced on Sept. 1.
"It is difficult to conclude from the rise in applications alone that the housing market is recovering or that the tax overhaul is taking effect," the city government said. "Future trends need to be watched alongside the possibility of tax adjustments during parliamentary deliberation and lending conditions."
By area, the three Gangnam districts and Yongsan District posted the steepest gain, up 51.5% from the previous month. The southwestern area and the Han River belt rose 30.4% and 29.2%, respectively. The 10 districts north of the Han River recorded the largest volume at 1,646 applications, though their growth rate was 13.0%. The northern area accounted for 44.8% of all applications, followed by the Han River belt at 21.2%, the southwestern area at 19.5%, and the three Gangnam districts and Yongsan at 14.6%.
Prices listed in September permit applications across Seoul rose 1.43% from the previous month. Core areas such as the three Gangnam districts, Yongsan and the Han River belt saw price gains decline or slow, while outer areas including the northern and southwestern districts posted wider increases. The pattern is attributed to owner-occupier buyers moving into lower- and mid-priced areas.
The northern and southwestern areas led the city with gains of 2.07% and 2.45%, respectively, from the previous month. The three Gangnam districts and Yongsan fell 0.32%, while the seven districts in the Han River belt rose 0.19%, a slowdown from the previous month's 0.74% gain.