High-priced housing line Gangnam and Seocho
Common life rate is low for the first time in their lives
May, the highest this year
![A panoramic view of apartments in Gangnam-gu, Seoul [News1]](https://wimg.mk.co.kr/news/cms/202607/05/news-p.v1.20260703.72c66a8a2a46401f946c8f641ca2d62e_P1.jpg)
Despite strong regulations, such as the limit on mortgage loans for homes worth 2.5 billion won or more, the “first buyer of life” recorded the highest figure this year in Gangnam and Seocho, which are full of high-priced apartments, in May.
Before the capital gains tax for multi-homeowners was imposed, it seems to be due to the desire to buy gifts using cash and real estate and “for-profit” with a large number of cash.
According to the court’s registration information square on the 5th, 224 people purchased their first real estate in Gangnam, the highest this year.
The number of first-time buyers in Gangnam-gu increased 5% from April (212). Compared to the beginning of the year (174 people), it soared 28%.
In particular, there were 130 buyers in their 30s between the ages of 30 and 39, more than those in their 40s (49) and 20s (21).
Seocho-gu also saw its first-time buyers surge last month. Seocho’s first-ever buyer in May was 205, exceeding 200 for the first time this year. The figure is up 19% from the beginning of the year (172 people). Like Gangnam-gu, Seocho-gu also had the largest number of buyers in their 30s (108). There were 44 and 26 buyers in their 40s and 20s, respectively.
The registration of transfer of ownership may be applied within a maximum of three months from the contract date. Therefore, the number of housing purchases in Gangnam and Seocho areas by first-time buyers may increase further.
As for the reason for the increase in the initial purchase of high-priced apartments of 3040, the industry and the market believe that the gift using parents’ assets and the purchase of some “for-profit” may have been combined. It also raises the possibility of low-cost transfers.
Low-cost transfer is the act of handing over real estate at a lower price than the market price between special relationships such as family members and relatives, and is virtually a gift. As long as there is cash to purchase a house, the transfer tax is relatively cheaper than the gift tax, so it is used as a method for multi-homeowners to give the house to their children.
![An apartment in the Banpo area of Seocho-gu from Gangbuk, Seoul [Maegyeong DB]](https://wimg.mk.co.kr/news/cms/202607/05/news-p.v1.20260703.20ba5a5ad40549b6a17299cd904405b7_P1.jpg)
Some say that the proportion of 3040 “for-profit” who purchased a rented house with cash has increased. However, as the transfer tax on multiple homeowners has resumed, all figures, including transactions and gifts in the Gangnam area and direct transactions expected to be low-cost transfers, are decreasing together.
Kim Hyo-sun, a senior real estate expert at KB Kookmin Bank, said, “Gangnam-gu and Seocho-gu are still the lowest areas in Seoul for the first time in their lives.
The government recently announced that it would look at the direction of the real estate tax reform by dividing houses for actual residential purposes, such as multi-homeowners and non-resident single-home owners, and houses for investment purposes.