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As mortgage rules tighten, investors cash out stocks for Gangnam homes

Published: 11 Feb. 2026, 17:12

An aerial view from Mount Nam in central Seoul shows apartment complexes in the capital city on Feb. 5. [NEWS1]

Homebuyers in Seoul funneled trillions of won from stock and bond sales into property purchases after the government began tightening mortgage rules in June last year, with more than a third of the money flowing into the affluent southern districts of Gangnam, Seocho and Songpa, data released Tuesday showed.

Buyers used a combined 2.4 trillion won ($1.7 billion) from stock and bond sales to purchase homes in Seoul between July 2025 and January 2026, according to data from housing purchase fund procurement plans submitted to the Ministry of Land, Infrastructure and Transport and obtained by Rep. Kim Jong-yang of the People Power Party.

Of that total, 909.8 billion won, or 37.9 percent, went to Gangnam, Seocho and Songpa, some of Seoul’s most expensive residential areas and home to many of the city’s high-end apartment complexes.

Gangnam District alone accounted for 378.4 billion won, the largest amount among the capital city’s districts.

Monthly figures show the inflow nearly tripled from 184.1 billion won in August to 463.1 billion won in September, before reaching a peak of 576 billion won in October. The amount later moderated to 299.5 billion won in November, 377.7 billion won in December and 301.8 billion won in January.

The broader trend has accelerated in recent years. Proceeds from stock and bond sales used for home purchases in Seoul totaled 576.5 billion won in 2022 and 1.06 trillion won in 2023, rising to 2.25 trillion won in 2024. For all of 2025, the figure reached 3.89 trillion won.

A pedestrian walks past a real estate agency displaying housing listings in Gangnam District, southern Seoul, on Feb. 8. [NEWS1]

Analysts link the shift to tighter mortgage rules introduced on June 27, 2025, that capped home-backed loans in the greater Seoul area at 600 million won, prompting some buyers to cash in gains from financial markets to fund property purchases.

October’s surge coincided with the benchmark Kospi topping 4,000 points for the first time.

Under current regulations, buyers must submit a housing purchase fund procurement plan when acquiring a home in a regulated area — designated as an adjustment target area or speculative overheating zone — or when purchasing a home priced above 600 million won in a nonregulated area. The form requires disclosure of funding sources, including deposits, proceeds from stock and bond sales, gifts or inheritances, sales of existing property and loans from financial institutions.

“Stronger lending regulations and a rally in the stock market overlapped, prompting buyers with ample cash to move into high-end homes in the Gangnam area," an industry insider said.

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 BAE JAE-SUNG [[email protected]]