[비즈한국] The share of 'out-of-town' investors purchasing apartments in Seoul has fallen for two consecutive months. This is analyzed to be the aftermath of the October 15 measures last year, which tightly regulated the entire city of Seoul as a land transaction permit zone.
According to apartment transaction data by buyer residence from the Korea Real Estate Board on the 15th, out-of-town residents accounted for 19.98% of total purchases of Seoul apartments in December last year. This is the lowest figure in 3 years and 2 months since October 2022 (18.67%), when the out-of-town share was at its lowest due to interest rate hikes.
In particular, the share of out-of-town purchases in December for Seongdong-gu and Mapo-gu, which saw significant house price growth last year, dropped to 20.15% and 20.97% respectively, marking a 7 percentage point decrease from 27.61% and 27.07% in the previous month.
Conversely, the share of Seoul residents purchasing apartments in other regions reached 6.43% in December last year, the highest level in 3 years and 5 months since July 2022 (6.50%). It appears that demand for purchases outside of Seoul has increased as transaction permit zones were expanded to 12 locations across Seoul and Gyeonggi, and loan regulations were tightened.
Purchases of Seoul apartments by non-residents tend to be driven by real estate policy changes and loan interest rates. The share tends to rise temporarily when real estate regulations are eased or immediately following a policy announcement due to 'last-minute demand,' only to plummet when stringent loan regulations or actual residency requirements are enforced.
In fact, in January 2023, as soon as the Yoon Suk-yeol administration lifted the regulated area status for all of Seoul except for the three Gangnam districts and Yongsan, the share of out-of-town buyers rose to 22%. This was a vertical increase from the 15% range recorded the previous year due to interest rate hikes.
Furthermore, in February 2025, when Seoul Mayor Oh Se-hoon temporarily lifted the land transaction permit zones in the Gangnam area, the out-of-town purchase ratio jumped to 25.15%. Following public backlash, Mayor Oh immediately reinstated the permit zones for the three Gangnam districts and Yongsan-gu in March, causing the out-of-town share to decrease to 22.79%.
The share of out-of-town buyers was 24.8% in September last year, but it plummeted to 19.9% in December, two months after the Lee Jae-myung administration announced the Oct. 15 measures. With the tightening of actual residency requirements and the total blocking of loans for multi-homeowners, it has become physically difficult for those not living in Seoul to purchase apartments in the city.
As President Lee Jae-myung and policy authorities continue to emphasize regulations on multi-homeowners, the current trend in the real estate market is expected to persist for the time being.