Rush of Urgent Sale of Gangman Apartments

The property transactions in Gangnam of Seoul look freezing by the government announcement for property stability policies. Without concerning of the size, many of apartments valued more than 600 million won come out for sell as the government established to impose property conveyance tax on the base of market value.

▽ 20-30 enquiry calls for sale = Park Myung-kyun, the President of Woojin Real Estate Agency in Gaepo-dong, Gangnam-gu, Seoul spoke at 13th “as the government extend the criteria of luxury housing at 11th, 20-30 inquiry calls for sale rush every day and 3 properties for urgent sale came out a day.

Some real estate agencies Jamsil of Sonpa-gu, has already 10 properties for urgent sale. Kim Chi-soon, the President of Eden Real Estate Agency said, “The persons considering the time of sale decided to sell the properties as confirming the government’s strong will to stabilize the market.”

In Apgujeong-dong of Gangnam-gu, Secho-dong of Secho-gu, the purchasing enquiry stopped, but properties for urgent sale come out by lowing the price 10-20 million won.

▽ Increasing tendency has stopped = As the affect of the announcement of property market stability policy in the last month and seasonal factors, the market price began to decrease rapidly.

According to the announcement of Kookmin Bank, the housing price in Kangnam of Seoul dropped by 0.1% at 8th compared to 1st of October.

At 4th, ‘UniAsset’ Franchise announcing market tendency every week announced the housing price of Kangnam, Secho and Songpa increased only 0.05% at 11th compared to 4th.

‘Proprety 114’, an Internet property information company, announced housing price of Kangnam-gu decreased by 0.08% at 10th compared to 3rd. The decreasing tendency of Kangnam-gu was first since October of the last year.

Oh Kun-seok, Manager of UniAsset forecasted, “According to the result of a survey, assuming the designation of apartment valued more than 6 million won as luxury housing, the luxury housing will increase by three times (55,623 units) of present criteria (13,201 units) and some of them will come out for urgent sale and the price may decrease further.”

Kim Seon-deok, the Representative of Strategy Research for Construction Industry, said, “Considering the obscurity of property market in next year, urgent sale will increase until the end of this year and the price will decrease further.”

▽ Housing construction companies postpone the sale of resident right = as the possibility of property market including Gangnam freezing increases, housing construction companies such as Hyundai, Daerim, Daewoo etc began to postpone or change the scale of construction.

An executive of large-sized construction companies said, “Many of housing demanders tend to apply resident rights when the possibility of housing price increase is high. If the price decreases, as the resident rights market contracts, we need to change management strategy for net year.”