Last Year, 40,000 Apartment Transactions in Seoul... Half Compared to Previous Year

The number of autonomous districts in Seoul where the average apartment sale price exceeds 50 million KRW per 3.3㎡ has more than doubled in one year. As of November last year, only Gangnam-gu, Seocho-gu, and Songpa-gu among the 25 autonomous districts in Seoul had average apartment sale prices exceeding 50 million KRW per 3.3㎡, but last month, Yongsan-gu, Seongdong-gu, Mapo-gu, and Gwangjin-gu were added, making a total of seven districts. The photo shows the view of Seoul apartments from 63 Square. Photo by Kim Hyunmin kimhyun81@

[Asia Economy Reporter Kim Hyemin] Last year, the volume of apartment sales transactions in Seoul sharply declined to about half of the previous year’s level. This trend appears to continue into the new year due to a combination of factors including recognition of peak housing prices, tax burdens, and financial sector regulations.

According to the Seoul Real Estate Information Plaza on the 7th, the number of apartment sales transactions in Seoul last year was recorded at 42,288. This figure is virtually final after a one-month reporting period. In comparison, the number of transactions in 2020 was 81,202, representing a 47.9% decrease.

Looking at the transaction volume over the past five years, the decline is also steep. Seoul’s apartment sales volume was 105,119 in 2017 and maintained an annual level of 70,000 to 80,000 from 2018 to 2020.

However, due to the rapid rise in housing prices and loan regulations, transactions slowed starting last year, and with interest rate hikes in the second half of the year, transactions nearly stopped by the end of the year. Monthly sales last year did not exceed 5,000 except in January. Until August, transactions remained in the 4,000 range but sharply dropped to the 2,000 range in September and fell to 1,360 in November. Particularly, December last year recorded 1,122 transactions, the lowest since records began in 2006.

This trend has continued into the new year, and monthly purchase volumes may decrease further. As of this day, January’s apartment sales transactions totaled 633. According to the Court Registry Information Plaza, the turnover rate of collective buildings in Seoul in January was 0.34%, down from 0.44% in December last year.

Yoon Jihae, Senior Researcher at Real Estate R114, said, "It would be more accurate to say there are almost no transactions in the current real estate market rather than just a decrease. A tug-of-war continues where people want to buy but cannot, and want to sell but do not, resulting in only occasional quick sales."