Record-High Housing Transactions Continue Amid 'Panic Buying'...

Cumulative Housing Sales Volume by August Each Year (Provided by the Ministry of Land, Infrastructure and Transport)

[Asia Economy Reporter Lee Chun-hee] It has been revealed that the cumulative volume of housing sales transactions up to August this year has reached the highest level since statistics began to be compiled. Analysts suggest that due to the side effects of the government's high-intensity policies, housing prices have continued to rise, leading to panic buying driven by fears that it will become increasingly difficult to become a homeowner if one delays further.

According to the Ministry of Land, Infrastructure and Transport and the Korea Real Estate Board on the 20th, the cumulative housing sales transactions this year amounted to 847,569 cases. This is the highest level since housing transaction statistics began to be compiled in 2006. It increased by 89.2% compared to 447,963 cases in the same period last year, and by 34.8% compared to the five-year average of 628,938 cases. If the current trend continues, the annual transaction volume this year may surpass the record high of 1,193,691 cases in 2015.

However, last month's housing sales transactions were 85,000 cases, a 39.7% decrease compared to July. Nevertheless, it still increased by 28.2% compared to the same month last year and by 1.2% compared to the five-year average.

By region, all areas showed a significant decrease compared to the previous month. Last month, the number of housing sales transactions in the Seoul metropolitan area was 43,107 cases, down 43.1% compared to the same month last year. Seoul itself recorded 14,459 cases, a 45.8% decrease compared to the same month last year, and the provinces saw a 35.8% decline.

However, the cumulative figures up to August this year still show considerably high numbers. The cumulative housing sales transactions in the Seoul metropolitan area this year reached 458,335 cases, which is 116.0% higher than the same period last year and 39.4% higher than the five-year average.

The volume of jeonse and monthly rent transactions showed a similar trend. Although last month's transaction volume slightly decreased compared to the previous month, the cumulative figures still maintain record highs. Last month's jeonse and monthly rent transactions were 175,355 cases, down 4.3% from the previous month but up 10.2% compared to the same month last year. The cumulative jeonse and monthly rent transactions up to August were 1,484,882 cases, showing an increase of 12.8% compared to the same period last year and 25.3% compared to the five-year average.

However, since the jeonse and monthly rent reporting system has not yet been introduced, the transaction volume is counted only for some contracts that have received a confirmed date.