Nationwide Housing Transactions Frozen... Seoul Down 15%, Provinces Down 2.5% in One Month

Ministry of Land Announces October Housing Statistics
Nationwide Transaction Volume Declines Including Seoul Metropolitan Area
Buying Demand Weakens Amid Perception of Peak House Prices
Unsold Units Accumulate in Local Lines Like Sejong

View of Seoul apartments from 63 Square. Photo by Hyunmin Kim kimhyun81@

As fatigue over rising house prices and the government's tightening of loan regulations rapidly cool housing demand, the volume of transactions in Seoul and other metropolitan areas has significantly decreased. In some local areas such as Sejong, unsold housing inventory is also accumulating, leading to forecasts that house prices will remain stagnant for the time being.

According to the 'October Housing Statistics' released by the Ministry of Land, Infrastructure and Transport on the 3rd, the total number of housing sales transactions nationwide in October, based on the reporting date, was 75,290. This represents a 7.8% decrease compared to the previous month (81,631 transactions) and an 18.8% decrease compared to the same month last year (92,769 transactions). The cumulative housing sales transactions from the beginning of this year through October totaled 894,238, a 12.5% decrease compared to the same period last year (1,022,266 transactions).

In October, the metropolitan area (31,982 transactions) saw a 14.1% decrease compared to the previous month, while local areas (43,308 transactions) decreased by 2.5%, indicating that the decline in transaction volume was greater in the metropolitan area than in local regions. By type, apartment transactions (48,796) decreased by 11.6% compared to the previous month, whereas non-apartment transactions (26,494) slightly increased by 0.2%. This is interpreted as demand shifting somewhat from rapidly price-increased apartments to villas, officetels, and other types of housing.

In fact, on a cumulative basis through October, apartment transactions (597,557) decreased by 19.1% compared to the same period last year, while non-apartment transactions (296,681) increased by 4.5% during the same period.

View of Seoul apartments from 63 Square. Photo by Hyunmin Kim kimhyun81@

The total number of jeonse and wolse (long-term lease and monthly rent) transactions in October, based on the reporting date, was 189,965. This is a 5.8% increase compared to the previous month (179,625 transactions). The cumulative jeonse and wolse transactions through October (1,943,192) also increased by 6.0% compared to the same period last year (1,832,823).

In the metropolitan area (129,656 transactions), transaction volume increased by 4.0% compared to the previous month, and in local areas (60,309 transactions), it increased by 9.8%. Apartment transactions (92,090) increased by 5.9%, and non-apartment transactions (97,875) increased by 5.6%. By lease type, jeonse transactions totaled 105,120, an 8.1% increase compared to the previous month, and wolse transactions (84,845) increased by 3.0%.

As buying sentiment weakens, unsold housing is gradually increasing, especially in local areas. As of the end of October, the total number of unsold houses nationwide was 14,075, a 1.7% increase compared to the previous month (13,842).

In the metropolitan area, there were 1,290 unsold houses, an 8.7% decrease compared to the previous month (1,413), but in local areas, the number increased by 2.9% from 12,429 to 12,785 within a month. Until September, local areas showed a decreasing trend in unsold houses due to the overheated real estate market, but recently, some regions are seeing a slight increase again. In particular, Sejong recorded 129 unsold houses, the first occurrence since April 2016 (3 houses).