00:02You're listening to AI Prism from Seoul Economic Daily.
00:06Before you sign anything in Korea's property market.
00:10The numbers just shifted under everyone's feet.
00:14Seoul apartment sales fell to 5,065 units in June, the lowest monthly total this year.
00:21The Housing Affordability Index in Seoul hit 179.3, the highest level in over three years.
00:29Land transaction permit applications are down nearly 15% a day this month.
00:35Meanwhile, Seoul prices just posted a 76th straight week of gains.
00:42It's Wednesday, July 29th.
00:44Let's look at what's happening in Korea's property market.
00:49Seoul's transaction drought stems from the expiration of a capital gains tax exemption in May,
00:54which had briefly flooded the market with discounted sales.
00:58Since then, buyers have been waiting on the government's tax reform announcement,
01:02unsure how holding taxes on high-value and multi-home properties will change.
01:08At the same time, banks have cut mortgage limits and raised rates,
01:12tightening the financing side of the market just as buyers turn cautious.
01:18Here's what the numbers show.
01:20Seoul recorded 5,065 apartment sales in June,
01:24its lowest monthly count this year,
01:27down more than 40% from the tax exemption rush in April and May.
01:32Daily land transaction permit applications in Seoul fell 14.7% this month,
01:39pointing to an even steeper slowdown in July.
01:42The Housing Affordability Index for Seoul reached 179.3 in the first quarter,
01:48up 14.2 points from the previous quarter,
01:52the highest level since the buying frenzy of late 2022.
01:56A median income household earning 5 million won a month,
02:00about $3,420,
02:03now spends roughly 2.3 million won,
02:06about $1,570,
02:09on mortgage payments alone,
02:11nearly 46% of income.
02:13Major banks cut mortgage limits on apartments under 1.5 billion won
02:18from 600 million to 300 million won,
02:22while raising rates alongside this month's policy rate hike to 2.75%.
02:28Seoul apartment prices still rose for a 76th consecutive week,
02:33up 6.03% so far this year,
02:36even as transaction volume collapsed.
02:40So what does this mean for buyers weighing a purchase this year?
02:43Earlier, we said Seoul's affordability index just hit 179.3.
02:49Here's what that actually means for you.
02:52Financing a median-priced home
02:54now eats up nearly half of a typical household's income
02:58before any other living costs.
03:01With tax rules still unsettled,
03:03real buyers are shifting toward outer boroughs like Nohwan and Dobong,
03:07where new supply,
03:09including a fresh 2,800-unit project in Bangnakdang,
03:13offers a lower entry point.
03:15Watch whether the coming tax reform narrows or widens the gap
03:19between high-priced and mid-priced districts,
03:23because that will decide where the next wave of demand lands.
03:28That's today's AI Prism Real Estate.
03:31This episode was produced with AI Assistants,
03:34based on Seoul Economic Daily reporting
03:36and reviewed by a human editor.
03:39AI Prism is a Juan Ifra award-winning series.
03:43We'll be back tomorrow.
03:44You've been listening to AI Prism
03:46from Seoul Economic Daily.
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