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Real estate market defies post-Oct. 15 expectations as interest in lower-priced apartments in Seoul surges

Published: 19 Nov. 2025, 07:00

Apartment buildings are seen from the Seoul Sky observatory in Songpa District, southern Seoul, on Sept. 21. [NEWS1]

One month after Seoul imposed sweeping new property restrictions, the city’s housing market is proving unexpectedly resilient, with apartments under 1.5 billion won ($1 million) drawing a surge of buyers and a sharp rise in permit filings across its more affordable districts.

A man in his 30s surnamed Park recently applied for a land transaction permit at the Seongbuk District Office after agreeing to purchase a 59-square-meter (635-square-feet) unit at Gireum New Town Complex 4 in Gireum-dong, Seongbuk District, central Seoul.

“After signing the preliminary contract, prices kept rising, so I was nervous the owner might change their mind,” Park said Monday. “When I contacted the district office, they said permit applications were so backed up that quick processing would be difficult.”

The unit had traded in the upper-800-million-won ($547,400) range before the Oct. 15 real estate measures but is now selling for around 970 million won, up about 80 million won.

One month after the Oct. 15 measures, the market has defied expectations that transactions would freeze. Buyer interest has been rising, especially for mid- to low-priced apartments in northern and southwestern Seoul, where many units fall below the 1.5-billion-won mortgage regulation threshold. Outer districts such as Nowon, Dobong and Gangbuk are also seeing a surge in inquiries.

Despite triple restrictions — including regulated zones, overheated speculation districts and the land transaction permit system — anxiety about rising home prices is driving buyers to chase mid-price units.

Apartment complexes are seen from central Seoul's Namsan on Nov. 14. [NEWS1]

From Oct. 20, when the permit system took effect, through last Wednesday, a total of 3,127 permit applications were filed across Seoul’s 25 districts. Songpa District received the most with 297 applications, followed by Nowon with 257, Seongbuk with 220, Gangseo with 207, Guro with 159, Eunpyeong with 153, Seodaemun with 146 and Jungnang with 120. Most of these districts are dense with mid- to low-priced apartments. Dobong saw 102 applications, and Gangbuk reported 89.

Because the entire city is now subject to the land transaction permit system, buyers must apply for a permit with the local district office and can finalize a purchase only after approval, which typically takes two to three weeks. As a result, permit filings have become a key indicator of market activity after the Oct. 15 measures.

“I expected things to quiet down after the measures, but calls keep coming in from people wanting to view homes,” said a realtor in Sanggye-dong, Nowon District, northern Seoul. “A 59-square-meter unit in Sanggye Jugong Complex 1 has climbed by about 20 million won and now trades at around 600 million won.” Many of the inquiries, the realtor added, come from young buyers relying on loans.

Apartments are seen from Mount Namsan in central Seoul on Nov. 13. [YONHAP]

A newly married couple in their 30s also purchased an 11-year-old apartment in Hwagok-dong, Gangseo District, for more than 1.4 billion won. “I think prices will continue to rise next year,” the husband said. “If we don’t buy now, we’ll be pushed out to Gyeonggi, so we borrowed as much as we could.” The complex has seen rising demand because units priced under 1.5 billion won are eligible for up to 600 million won in mortgage loans.

Although the 3,127 applications filed citywide since the Oct. 15 measures represent a drop from the 9,387 applications in the heated weeks before the policy, the figure is still 16 percent higher than during the same period last year. Many northern and southwestern districts have seen their activity rise more than 50 percent compared to a year ago.

Kim Eun-sun, head of big data at real estate app Zigbang, said fear of missing out — fueled by concerns that prices in prime districts will climb further, as well as a shortage of jeonse (lump-sum deposit) units — is driving buyers to act quickly. “This trend is feeding real demand into apartments under 1.5 billion won in northern and outer Seoul,” Kim said.

Apartment complexes are seen in Seoul on Nov. 13. [NEWS1]

Nam Hyuk-woo, a real estate researcher at Woori Bank, noted that many northern and outer districts still have not returned to their 2021 peak prices. “Buyers are also responding to expectations of future gains,” he said.

By contrast, districts along the “Han River belt,” such as Mapo and Seongdong, which saw explosive price growth during the boom, have cooled significantly. Following the Oct. 15 measures, Seongdong received just 62 permit applications, Mapo 88 and Gwangjin 39, all far fewer than mid-priced districts. Transaction volume has fallen sharply amid price fatigue, loan limits and a lack of listings.

Still, brokers say prices are unlikely to fall much because asking prices remain high and wealthy buyers continue to make occasional purchases.

Apartments are seen from Lotte World Tower in southern Seoul on Nov. 6. [NEWS1]

In contrast to the diverging trends in the Han River belt and the northern and southwestern districts, the three Gangnam districts — Gangnam, Seocho and Songpa — remain strong despite the tough regulations. Songpa saw the most permit filings of any district, while Gangnam reported 141 and Seocho 119.

Gangnam is also the only area in Seoul that has continued to see new record-high transactions since the policy was announced. According to Zigbang, Songpa recorded 187 all-time-high sales after the measures. A 59-square-meter unit at Jamsil LLL's traded at 3.1 billion won earlier this month, surpassing the 3-billion-won threshold for the first time. Gangnam recorded 99 such transactions, and Seocho 77.

“Amid widespread anxiety about limited supply, the land transaction permit system may reduce trading volume but does not push prices down,” said Park Won-gap, senior real estate expert at KB Kookmin Bank. “The past month has reaffirmed that Gangnam is effectively immune to regulation.” Nam added that prices in the ultra-high-end Gangnam market are unlikely to fall given the depth of demand from wealthy buyers.

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
BY BAEK MIN-JUNG [[email protected]]