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Photo courtesy of Yonhap News |
[Alpha Biz= Paul Lee] Seoul’s apartment market experienced the highest contract cancellation rate since 2020, as rapid policy changes and rising uncertainty led more buyers and sellers to withdraw from transactions.
Government data shows that between January and November, Seoul recorded 75,339 apartment sale contracts, with 5,598 cancellations, representing 7.4% of all deals — the highest level since the government began publishing such data in 2020.
The figure marks a sharp increase compared with previous years. Cancellation rates climbed from 3.8% in 2020 to a peak of 5.9% in 2022, before stabilizing around the mid-4% range in 2023–2024. This year, the rate spiked to over 10% in June and July, following a series of major announcements including new lending restrictions, a large-scale supply plan, and expanded regulated zones.
Market analysts point to two main drivers:
Sellers canceling deals in expectation of stronger price gains, even after paying penalties.
Buyers withdrawing due to tightened lending rules and financing difficulties.
The average price of canceled contracts reached KRW 1.37 billion, suggesting an average penalty of about KRW 136 million, assuming a standard 10% forfeiture.
Some experts also raised concerns over potential false contract filings aimed at artificially boosting prices. Cancellation rates were particularly high in districts that saw strong price appreciation, including Seongdong, Yongsan, Jung, Seodaemun, Gangdong, and Gangnam—areas often referred to as Seoul’s “Han River Belt.”
알파경제 Paul Lee 특파원(hoondork1977@alphabiz.co.kr)
