Seoul Real Estate Gifting Reaches Highest Level in 3 Years
A notable shift is emerging in Seoul's real estate gifting market. According to recent statistics released by the Court Registration Information Plaza, the number of collective building transfers including apartments and villas in Seoul reached 8,491 cases last year. This represents approximately a 30% increase compared to 6,549 cases in 2023, marking the highest figure since 12,142 cases in 2022.
The upward trend in gifting continues this year. Seoul real estate transfers in the past month reached 785 cases, representing approximately an 87% increase from 419 cases during the same period last year. If this growth trajectory continues throughout the year, 2024 is projected to surpass 10,000 cases for the first time since the Moon Jae-in administration, a phenomenon regarded as highly unusual in Seoul's real estate market.
Capital Gains Tax Surcharge Exemption Expiration Sparks Gifting Rush
The surge in real estate gifting is primarily driven by the scheduled expiration of capital gains tax surcharges on multi-property owners. The government has officially announced plans to terminate the exemption period for capital gains tax surcharges on multi-property holders by May 9, and in response to this policy change, multi-property owners are actively choosing family transfers over sales.
Strong motivation to avoid tax burdens has intensified gifting activity, particularly in areas with sustained expectations of rising property values. This phenomenon is especially pronounced in Gangnam's three districts. Seocho-gu saw gifting transactions surge 80% year-over-year to 1,908 cases, while Songpa-gu increased approximately 85% from 654 to 1,208 cases, revealing a stark polarization within Seoul's real estate market.
Real estate data analysis experts interpret this phenomenon as a result of psychological learning effects. Multi-property owners are strategically choosing gifting over listing sales to minimize tax burdens, drawing lessons from past policy changes. This tendency is particularly pronounced in areas like Gangnam's three districts where property value appreciation potential is higher.
Concerns Over Market Impact from Property Listing Freeze
Experts warn that if capital gains tax surcharge exemptions truly expire after May 9, unexpected repercussions may occur in Seoul's real estate market. The primary concern is that strengthened tax regulations may prompt multi-property owners to adopt a holding strategy rather than actively listing properties.
Should this situation intensify, a significant decrease in available listings—which play a crucial role in the market—could occur. An official from Shinhan Financial Group noted that when tax burdens prevent properties from coming to market, supply shortages will intensify after existing distressed sales are absorbed. Persistent listing shortages could create imbalances where supply significantly lags demand.
Experts' primary concern is that prolonged property listing freezes could reignite upward pressure on Seoul real estate prices. If preemptive gifting choices driven by tax concerns extend beyond a temporary phenomenon, mid-term price increases due to supply constraints may become inevitable. Given that the current gifting rush could lead to future real estate market supply-demand imbalances and price volatility, careful monitoring by market participants is essential.
This content is general information compiled based on publicly available data. Please verify details through official announcements from relevant authorities.
