Applications for land transaction permits for apartments in Seoul have decreased for three consecutive months, dropping to half of the peak recorded in April. This decline is accompanied by a slowdown in price increases in the Gangnam area, while the upward trend is spreading to the Gangbuk area and some regions in Gyeonggi Province.
On August 14, the Seoul city government reported that the number of new applications for land transaction permits for apartments in July totaled 4,681. This figure marks a decline from the peak of 8,911 in April, with subsequent months showing decreases: 6,021 in May, 5,304 in June, and 4,681 in July. The July applications represent a 47.5% drop from April and an 11.7% decrease from the previous month.
The average daily number of applications has also fallen, with July's average at 212.8, down 15.8% from June's 252.6, marking the lowest level this year. As of the end of July, a total of 53,114 applications have been submitted since the implementation of the land transaction permit system in Seoul, with 51,698 (97.3%) processed.
The Korea Real Estate Agency announced on August 13 that the national apartment sales price index rose by 0.08% compared to the previous week as of the second week of August. The metropolitan area saw a 0.14% increase, while Seoul's prices rose by 0.21%. However, the increase in Seoul has slowed from 0.26% the previous week.
Notably, there is a significant temperature difference between the Gangnam and Gangbuk areas. The 11 districts in Gangnam saw a 0.14% increase, while the 14 districts in Gangbuk experienced a 0.29% rise. Seocho and Gangnam districts recorded declines of 0.04% and 0.02%, respectively. In contrast, Jungnang district rose by 0.46%, Seongbuk by 0.43%, Seodaemun by 0.41%, and both Jung-gu and Gangbuk by 0.40%.
Some regions in Gyeonggi Province also showed strong upward trends. Jungwon district in Seongnam recorded the highest increase in the metropolitan area at 0.55%, followed by Byeongjeom district in Hwaseong at 0.42% and Gwangmyeong at 0.40%. However, Icheon and Paju saw declines of 0.14% and 0.10%, respectively.
The rental market also showed a relatively strong increase in the Gangbuk area. The average rent for apartments in Seoul rose by 0.20%, a decrease from the previous week's 0.25%. However, the 14 districts in Gangbuk saw a 0.24% increase, surpassing Gangnam's 0.16%. Gangnam district also experienced a 0.03% drop in rental prices. Key areas in Gangbuk, such as Seongbuk, rose by 0.40%, Nowon by 0.35%, Seodaemun by 0.29%, and Mapo by 0.26%, indicating a notable upward trend in rental prices.
According to Zigbang's analysis of apartment transaction data from the Ministry of Land, Infrastructure and Transport, 53.8% of transactions in the price range of 1.5 billion to 2 billion won in July were recorded as new highs. There was also an increase in new high transactions in the 600 million to 2 billion won range. Despite a general market contraction, some demand for high-end apartments continues.
In transactions utilizing loans, regional disparities have emerged. According to an analysis by Jikbum on August 11, the average loan index for collective buildings in Seoul's 25 districts was recorded at 50.47 in July, down 3.34 points from 53.81 in the same month last year and 1.52 points from 51.99 in June. Eunpyeong district had the highest index, while Gangnam had the lowest.
In the office market, despite an increase in vacancy rates due to rising supply, demand remains strong for quality assets. Al Square reported on August 12 that the average vacancy rate for offices in Seoul reached 6.5% in the second quarter of 2026, up 0.4 percentage points from the previous quarter, largely due to a significant increase in new office supply. However, rental prices and investment demand for quality assets continue to show a solid trend, indicating a clear differentiation in the office market.
While public sector contracts have increased, private sector contracts have sharply declined, leading to polarization in the construction market. The Korea Construction Industry Institute reported on August 12 that construction orders in June totaled 18.7 trillion won, a 21.7% decrease from the same month last year. Public sector contracts increased by 29.2% due to large projects like the Jecheon-Yangwon Expressway and the Jeju Clean Energy Complex, while private sector contracts fell by 41.5% across civil engineering, housing, and non-residential sectors.
Construction performance improved, particularly in public and non-residential building sectors. June construction performance reached 14.1 trillion won, up 19.9% from the previous month and 1.6% from the same month last year. Public sector performance increased by 12.2% year-on-year, while non-residential building performance rose by 22.9%. The simultaneous occurrence of poor private sector orders and expanded public sector contracts continues to create disparities within the construction market.
* This article has been translated by AI.
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