Seoul Land-Deal Permit Filings Fall for Fourth Month

* Editor's note: AI PRISM (Personalized Report & Insight Summarizing Media) is an artificial intelligence-based personalized news recommendation and summary service developed with support from the Korea Press Foundation. It selects and provides six news items tailored to each reader type.

1. Deepening Wait-and-See Mood: Seoul Land-Deal Permit Filings Fall for Fourth Month

Key summary: New applications for land transaction permits for Seoul apartments came to 3,012 last month, down 34.8% from 4,618 the previous month. Compared with the April peak of 8,896, that is a 66.1% plunge and the lowest level since the entire city of Seoul was designated a land transaction permit zone in October last year. Price trends diverged by area. The 10 districts in northern Seoul rose 0.61% and the seven districts along the Han River belt gained 0.52%, while the three Gangnam districts and Yongsan District fell 0.34% and southwestern Seoul declined 0.99%. Northern Seoul's share of total applications in the city rose to 48.8% last month from 46.4% in July, in what analysts see as a clear shift of demand from people buying a home to live in toward areas with relatively lower price burdens.

2. "Flawed Levy Calculation Method Needs Review": Hong Ji-sun Vows to "Find a Reasonable Solution"

Key summary: In Seoul, 46 complexes are expected to face the excess profit recovery charge on reconstruction, with expected levies totaling 2.169 trillion won. The average expected levy per association member is estimated at about 320 million won at Raemian Trinione, the rebuilt Banpo Jugong Complex 1 District 3, and about 680 million won at Hangang Mansion in Yongsan. The associations argue that the index of actual transaction prices, rather than the Korea Real Estate Board's housing price trend survey, should be applied in calculating normal price gains, and they have signaled administrative litigation. Industry officials warn that if the levies are imposed as calculated, supply capacity of 370,000 to 610,000 homes in Seoul and the greater capital area could be curtailed. Hong Ji-sun, the nominee for land minister, said in written answers for a confirmation hearing that the ministry would work out a reasonable way to operate the system.

3. 6,500 Homes Planned in the "Back Streets of Seoul Station": Villa With 39-Square-Meter Land Share Asks 1.4 Billion Won

Key summary: Six redevelopment projects, including rapid integrated planning and Moa Town schemes, are being pursued simultaneously in the Seogye and Cheongpa neighborhoods of Yongsan District, with more than 6,500 homes to be supplied across five zones. The Seogye integrated zone (2,691 homes), Cheongpa District 2 (1,905 homes) and Cheongpa District 1 (697 homes) have advanced to the stage of approval for association establishment, and once the redevelopment plan for Cheongpa District 3 is finalized, the area will be remade into a large residential district of around 8,000 homes. Reflecting redevelopment expectations, a villa with a 39-square-meter land share in the Seogye integrated zone is listed at 1.4 billion won, and a low-rise multi-unit home with a 64-square-meter land share in Cheongpa District 1 is on the market at 1.55 billion won. Access to four subway lines, including the GTX-A, and proximity to downtown business districts are cited as strengths, and project viability has improved thanks to eased rules such as Seoul's recognition of existing floor area ratios.

4. Standard Construction Cost Jumps 4% in Two Months: Presale Prices to Rise Further in Gangnam, Yongsan and Third-Phase New Towns

Key summary: The government is adjusting the standard construction cost used under the price cap on new homes to 2.328 million won per square meter starting on the 15th. That is a 4.07% increase, or 91,000 won, in just two months from the 2.237 million won set in an off-cycle notice in July, and nearly 5% higher over half a year from the March notice. The main driver is a 9.77% jump in indirect construction costs, which account for 65% of this increase. Presale price increases are becoming visible in the third-phase new towns: the presale price for an 84-square-meter unit in Block A6 of Incheon Gyeyang is about 150 million won higher than in Block A2 two years ago, while Block A-3 of Namyangju Wangsuk 2 was set at 732.45 million won, roughly 30% above the estimated price at the pre-subscription stage.

5. Not Just Gangnam Was Hot: The Rediscovery of Dongdaemun District

Key summary: Seoul's residential property tax bill this year came to 3.8961 trillion won, up 511.8 billion won, or 15.1%, from last year. Dongdaemun District posted the largest increase at 26.4% year-on-year, driven by a sixfold jump in the number of taxed homes with published prices above 1.2 billion won, to 2,397 from 399 in a single year. The number of taxed homes with published prices above 1.2 billion won across Seoul also rose 43.9%, while the share held by the three Gangnam districts fell to 59.1% from 69.0% and the share of the eight Han River belt districts rose to 37.7% from 28.3%, in what analysts read as the spread of high-priced housing beyond Gangnam.

6. Even the Tax Agency Is Struggling With "Tax Law Interpretation": 230 Queries Unanswered for More Than a Year

Key summary: From January to July this year, queries seeking interpretation of real estate-related tax law — covering capital gains tax, the comprehensive real estate holding tax and inheritance and gift taxes — totaled 2,726, equal to 91.3% of the 2,987 queries filed for all of last year. Of those, 1,578 have gone unanswered, and 230 cases have received no reply even after 365 days, 2.3 times the 100 cases a year earlier. The backlog reflects successive policy changes, including the resumption in May of heavier capital gains taxes on multiple-home owners and the announcement of the Aug. 3 tax reform package, which have increased uncertainty for taxpayers. The average processing period is 114.5 days, with one case taking as long as 766 days.