September Housing Transactions Decrease Compared to Previous Month... Cumulative Total Still at Record High Level

Housing Sales Transaction Volume Trends as of September 2020 (Provided by Ministry of Land, Infrastructure and Transport)

[Asia Economy Reporter Lee Chun-hee] Last month, the volume of housing sales transactions decreased by 3.9% compared to August. However, it remains higher than the 5-year average, and the cumulative housing sales volume for this year continues to reach record highs.

According to housing sales transaction statistics released on the 20th by the Ministry of Land, Infrastructure and Transport and the Korea Real Estate Board, last month's housing sales volume was 81,928 transactions, down 3.9% from 85,272 transactions in the previous month. Compared to 64,088 transactions in the same month last year, it increased by 27.8%, and it is 1.8% higher than the 5-year average for September of 80,469 transactions.

Recently, nationwide housing sales volumes have shown a decline compared to the previous month. In August, the sales volume dropped by as much as 39.7% compared to the previous month, marking two consecutive months of decline. However, some analyses suggest this is a base effect following 'panic buying' in June and July, when sales volumes reached record highs of 138,578 and 141,419 transactions respectively, the highest since statistics began in 2006.

In fact, as of last month, the cumulative housing sales volume for this year stands at 929,497 transactions, maintaining the highest level since statistics began. This is an increase of 81.5% compared to 512,051 transactions in the same period last year, and 31.0% higher than the 5-year average of 709,406 transactions.

By region, the metropolitan area showed a decline compared to the previous month, while non-metropolitan areas showed an increase. Last month, housing sales in the metropolitan area totaled 38,089 transactions, down 11.6% from the previous month. Seoul also decreased by 25.6% to 10,755 transactions compared to the previous month. In contrast, non-metropolitan areas increased by 4.0% to 43,839 transactions.

The volume of jeonse and monthly rent transactions showed a slight decrease. Last month, the volume of jeonse and monthly rent transactions was 175,126, down 0.1% from the previous month. However, compared to the same month last year, it increased by 18.1%, and compared to the 5-year average, it rose by 32.7%.

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