Reporter Park Jae-na] Seoul’s apartment transaction volume recovery seems to be in full swing. The number of transactions exceeded 3,000 in April, thanks to the exhaustion of quick sales, switching transactions, and demand from homeowners.

According to the Seoul Property Information Plaza on the 4th토토사이트, the number of apartment transactions in Seoul in April was 3,185. This is the first time Seoul apartment transaction volume has exceeded 3,000 since August 2021 (4065). It has recovered nearly 90 per cent of the volume of transactions in April 2021 (3657), at the beginning of the surge in apartment prices.

Along with the slowdown in transaction volume, prices are also on the rise. According to the Korea Real Estate Agency, apartment prices in Seoul have been on the rise for two consecutive weeks, following a decline since the end of March this year. This week, apartment prices in Seoul rose by 0.04 per cent, up from 0.03 per cent last week.

In some neighbourhoods, transaction volumes were higher than in April 2021. These include Gangdong-gu, Songpa-gu, Mapo-gu, Seodaemun-gu, Seongdong-gu, Dongdaemun-gu, and Eunpyeong-gu. In particular, Gangdong recorded 245 transactions, an increase of 87 transactions from April 2021 (158). Dongjak-gu, Seongbuk-gu, and Yeongdeungpo-gu have less than five transactions between them, and other districts have recovered by 80-90%.

In the case of Seoul apartments, sporadic rebound transactions were seen in the first quarter of the year, following the exhaustion of bargain hunting, but experts said at the time that it was difficult to generalise due to insufficient transaction volumes. “The absolute transaction volume itself is still insufficient, so it’s important to look at the movement after the bargain hunting,” said Yoon Ji-hae, head of research at Real Estate R114. Kim In-man, head of the Real Estate Research Institute, also said, “The volume indicator is very important, so it should be normalised.”

This sentiment is likely to be driven by demand for upscale properties and home purchases through special mortgage loans. Signs of a rebound were first detected in Gangnam and central Seoul, as the share of transactions for apartments priced between 600 million and 900 million won, which are eligible for the special mortgage, rose. According to the Ministry of Land, Infrastructure, and Transport’s Real Estate Transaction Disclosure System, the share of Seoul apartments worth between 600 million won and 900 million won transacted in the first quarter of this year was 29.4 per cent, up 7.2 percentage points from the previous quarter (22.2 per cent). The special security deposit loan is an exception to the total debt service coverage ratio (DSR) regulation, allowing borrowers to borrow up to 500 million won regardless of income. The interest rate applied to this product is a fixed rate in the low 4% range.

However, it is unclear whether the upward trend in transaction volume will continue, as the interest rate of special deposit loans is higher than that of mortgages from commercial banks, which has slowed down demand, and the price is significantly higher than the eye level of buyers. “Seoul apartment sales prices hit their lowest point in December last year, and interest rate risks have decreased,” said Park Won-gap, a senior real estate expert at KB Kookmin Bank. “The recovery of transaction volume depends on the movement of pending demand.”