Seoul apartment gift transactions surged in the fourth quarter of last year...Led by "Gangnam 3rd District"

In the fourth quarter of last year, apartment donations in Gangnam, Seoul, increased sharply.

According to an analysis of statistics by apartment transaction sources compiled by the Korea Real Estate Agency, gifts accounted for 14.4% and 13.6% of the total transactions of apartments in Seoul in October and November last year, respectively.

This is the highest level since December 2022 at 29.9%, up from 4.9% in September and 7.9% and 7.2% in October and November last year.

In particular, the increase in the Gangnam area was noticeable, with Seocho-gu accounting for 55% of the apartments reported for transactions in October last year, and 40% in November.

In addition, Gangnam-gu showed 20% and 14.5% in October and November last year, respectively, and Songpa-gu showed 17% and 36% in October and November last year, respectively.

This is in contrast to the proportion of gifts in Nowon, Dobong, and Gangbuk-gu, where mid- to low-priced apartments are concentrated, which was only around 2-5% in October and November last year.

The demand for gifts increased in the fourth quarter of last year because the National Tax Service decided to expand its appraisal method to calculate gift taxes for residential real estate such as ultra-high-priced apartments from this year.

In addition, the decrease in transaction volume and the increase in actual transaction prices due to stricter loan regulations since September last year also seems to have affected the increase in gift transactions.