Gangnam transactions rose 30.5% in September; over half in Gangnam and Seocho were lower
Following the announcement of the August 3 tax reform plan, there has been an increase in transactions at lower prices in Seoul's Gangnam area. Transactions in Gangnam surged over 30% in September compared to the previous month, with more than half of comparable transactions in Gangnam and Seocho being finalized at lower prices. Long-term owners, aware of impending tax burdens, are increasingly listing properties for what is termed 'urgent sales.' According to an analysis by Aju Economy of brokerage transactions, out of 294 comparable transactions in the three districts of Gangnam in September, 131 (44.6%) were concluded at lower prices than previous deals. Among these, 52 transactions were more than 5% lower, and 20 were more than 10% lower. In Gangnam and Seocho, 88 out of 165 comparable transactions (53.3%) were lower-priced deals. This proportion rose from 35.9% in July to 38.7% in August and then to 53.3% in September. In contrast, Songpa saw a decrease from 37.0% in August to 33.3% in September.
As high-end areas become less accessible, buyers shift to cheaper neighborhoods
Since the August 3 tax reform, the housing market in Seoul has contracted, leading to a trend where demand is shifting to relatively lower-priced areas. Buyers who have given up on purchasing in high-priced regions are moving to neighborhoods like Nowon, Gangbuk, and Dobong, raising concerns about a potential balloon effect. If homeowners, mindful of tax burdens, choose to sell rental properties or occupy them, existing tenants may be pushed back into the rental market, creating secondary burdens. An analysis by Aju Economy of real estate big data platform Asil and the Ministry of Land, Infrastructure and Transport's actual transaction data revealed that in the past three months, the number of apartment listings increased in 24 out of 25 districts in Seoul. Overall listings in Seoul rose by 16.8%, from 100,105 to 116,882. Only Seocho saw a 2.4% decrease. Despite the increase in listings, transactions have not kept pace. Listings in Mapo, Dongjak, Nowon, and Yangcheon increased by a combined 28.0% compared to three months ago, but September transaction volumes dropped by 24.8% from August. Dongjak saw a decrease from 124 to 81 transactions, a drop of 34.7%, while Mapo (-25.7%), Nowon (-22.9%), and Yangcheon (-22.4%) also experienced declines.
37% of major redevelopment projects in Seoul lack sufficient information disclosure
Among redevelopment projects in Seoul that have entered the project implementation approval stage, 37% have fallen short of the Seoul government's transparency evaluation, scoring below 100%. More than half of the projects in the sales stage also received similar evaluations. There are calls for improved information disclosure management to ensure that key documents, such as construction costs and member contributions, can be verified in a timely manner. An analysis by Aju Economy of the Seoul government's 'Comprehensive Information on Maintenance Projects' list found that there are a total of 320 housing maintenance-type redevelopment projects. Of these, 64 are registered as operational projects in various stages, including project implementation approval, management disposition approval, demolition, construction commencement, and sales. Out of these 64 projects, 59 had their transparency scores assessed, and 22 (37.3%) scored below 100%. This indicates that some projects failed to receive appropriate evaluations due to delays in disclosure or lack of documentation.
Daewoo Engineering & Construction requests mediation in Czech nuclear power negotiations; Ministry of Trade says it lacks legal authority
Daewoo Engineering & Construction has requested mediation from the Ministry of Trade, Industry and Energy in response to the breakdown of negotiations over the construction contract for a new nuclear power plant in the Czech Republic. The ministry stated that it has not received any formal mediation requests and lacks the legal authority to mediate negotiations between companies. On November 2, Daewoo Engineering & Construction issued a statement expressing serious regret over receiving a notice from Korea Hydro & Nuclear Power, the primary contractor for the Czech nuclear project, regarding the termination of construction contract negotiations on October 30. Previously, on October 29, Korea Hydro & Nuclear Power had ended negotiations with the Daewoo Engineering & Construction and Doosan Enerbility consortium regarding the construction contract for the new Czech nuclear power plant. According to the notice released by Daewoo Engineering & Construction, Korea Hydro & Nuclear Power determined that there were significant disagreements between the parties, as the consortium's revised proposal did not accommodate requests to reflect increased construction volumes and additional work in the existing contract amount.
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.