In Seoul, housing listings are rising as the deadline for the tax exemption for multiple homeowners approaches, yet potential buyers are hesitant and waiting for clearer government policies.
As of May 9th, the end of the tax exemption for multiple homeowners is causing a noticeable increase in housing listings in Seoul, particularly in regulated areas. Despite this increase, buyers are adopting a 'wait and see' approach, hesitant to make purchases due to uncertainties regarding government policies and price fluctuations. The real estate industry anticipates that recent government announcements concerning housing regulations will lead to further market shifts.
According to data from the real estate platform Asil, the number of housing listings in Seoul rose to 59,706 by June 6, reflecting a 7.2% increase from 55,695 listings just ten days earlier. Significant increases in listings are particularly notable in districts like Gangnam and the Han River belt, with districts like Songpa and Seongdong seeing increases of 14.9% and 16.5% respectively. Market analysts interpret this rise in listings as a reaction to messages from President Lee Jae-myung targeting multiple homeowners and reports from the Ministry of Economy and Finance regarding the end of preferential tax treatment for multiple homeowners.
The buying and selling sentiment in the market is weakening, as indicated by the declining transaction demand index. The index for apartments in the southern Seoul region has fallen to its lowest level in 21 weeks, suggesting that the supply of sales is outpacing demand. The anticipated government policy allowing a grace period for buyers who purchase properties occupied by tenants adds a layer of uncertainty, possibly impacting the market further as buyers remain alert to these developments.
