The number of applications for housing demolition permission, or "tocheo" in Korean, for Seoul apartment buildings has been decreasing for three consecutive months. This trend is also reflected in the slowing down of rising apartment prices in Seoul. According to the Seoul Metropolitan Government, the number of tocheo applications received from January to March this year was 6,337. This represents a 32.7% decrease compared to the 9,421 applications received during the same period last year. Compared to the monthly figures, January saw 2,568 applications, February 2,091, and March 1,678. The number of applications has been decreasing for three consecutive months since January. The decrease in tocheo applications is also reflected in the slowing down of rising apartment prices in Seoul. According to the Korea Real Estate Board, the average price of apartments in Seoul rose 0.38% in March. This is a decrease from the 0.45% increase in February and the 0.83% increase in January. Experts say that the decrease in tocheo applications and the slowing down of rising apartment prices are due to the government's measures to control the real estate market. The government has been implementing various measures to cool down the real estate market, including increasing the down payment ratio and tightening lending regulations. As a result, experts predict that the real estate market will continue to slow down in the coming months. However, some experts also note that the decrease in tocheo applications may not necessarily mean that the real estate market is slowing down. They argue that the decrease in applications may be due to the fact that many developers are choosing to delay their projects until the government's policies become clearer. In any case, the trend of decreasing tocheo applications and slowing down of rising apartment prices is expected to continue in the coming months. The government will continue to monitor the real estate market and implement measures to ensure that it remains stable.
Seoul apartment land-use permit applications have been steadily decreasing for three consecutive months, with the rate of price increases also halving. Among the hardest-hit areas are Gangnam-gu and Jung-gu, while low-to-mid-priced apartments in Jongno-gu and southern Seoul continue to show relative strength. The Seoul government reported on July 14 that the new land-use permit applications for Seoul apartments totaled 4,681.
This was a 47.5% decrease from April's 8,911 applications and an 11.7% drop from June's 5,304 applications. The decline has persisted for three months since April, with an average of 212.8 applications per day, the lowest since this year began. Since Seoul designated all land-use permit application districts as zoning districts last October, the cumulative applications have reached 53,114.
Within the metropolitan area, the largest decrease was seen in Gangnam-gu and Jung-gu, with a 21.6% decline in applications from June (691) to July (542). The share of total applications also fell from 13.0% to 11.6%. Meanwhile, the share of applications in Gangnu-gu's 10 districts increased from 46.2% to 46.7%, while it rose from 18.8% to 19.7% in southern Seoul's four districts.
The land-use permit application fees rose by 1.41% compared to the previous month, but the increase rate slowed down compared to the 2.67% growth in June. Gangnam-gu and Jung-gu saw increases of 0.38% and 0.63%, respectively, while Gangnu-gu and southern Seoul experienced rises of 1.78% and 2.29%. The Seoul government analyzed that the real impact of the loan regulation on low-to-mid-priced housing is reflected in the continued demand for smaller properties.
The reduction in applications for housing that can be lived in due to the government's extension of the exemption policy accounted for 4.5% of the total. The Seoul government views the decrease in applications from June by 23.6% as not significant due to the government's expansion of the exemption target. This report is based on data formed prior to the release of the government's 8·3 tax reform bill on June 13.
The Seoul government expects the 8th month land-use permit statistics to show the first reaction of the Seoul housing market to the two policy measures announced that day.
Written by urgent.news from Hankyoreh's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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- A foreign man and two women were arrested on suspicion of abandoning a dead body on hospital grounds in Toyokawa, Aichi Prefecture. The three, whose nationalities were not disclosed, are suspected of leaving the body of a man in his 50s on the grounds of a hospital in Toyokawa late on July 22. Police received a tip about a suspicious person and found the body. The three suspects, who are believed to have been in Japan illegally, were arrested on July 23 on suspicion of abandoning a dead body. They told police they had been asked by someone to dispose of the body. The three are being held in police custody. asahi.com
