Last Year, Total Real Estate Transactions Down 40%, Transaction Amount Down 46%

[Asia Economy Reporter Tae-min Ryu] Last year, transactions of all types of real estate, including apartments and officetels, sharply decreased compared to the previous year.

On the 19th, Real Estate Planet, a big data and AI-based commercial real estate specialist company, analyzed last year's nationwide real estate transaction characteristics by type based on the Ministry of Land, Infrastructure and Transport's actual transaction price data. The analysis showed that last year's nationwide real estate transaction volume decreased by 39.5% compared to the previous year. This is the lowest level since the disclosure of actual transaction price data.

In particular, apartment transaction volume fell to less than half during the period. Apartment transactions were 581,424 in 2021 but dropped to 254,717 in 2022, a decrease of 326,707 transactions (56.2%) in one year. Transactions of multi-family and row houses amounted to 110,285 last year, down 43.3% from 194,604 the previous year. Following this, single-family and detached houses decreased by 38.7%, commercial and office buildings by 34.5%, officetels by 32.4%, land by 27.8%, and shops and offices by 26.6%, showing a downward trend in that order.

As transaction volume declined, the transaction amount also plunged by 46.4% compared to the previous year. Nationwide real estate transaction amounts were recorded at KRW 530.2245 trillion in 2021 and KRW 284.3212 trillion last year. This is the largest drop since the actual transaction price data was disclosed in 2006.

The transaction amount had been decreasing since 2020, but recording an amount in the 200 trillion KRW range is the first time since 2013 (KRW 257.7891 trillion). Apartment transaction amounts decreased by 63.3%, from KRW 202.2183 trillion in 2021 to KRW 74.1811 trillion last year. Multi-family and row houses decreased by 43.7%, single-family and detached houses by 42%, officetels by 40%, shops and offices by 34.8%, commercial and office buildings by 34.1%, and land by 32.3%, respectively.

Jung Soo-min, CEO of Real Estate Planet, explained, “Analyzing the nationwide real estate transaction data by type in 2022, both transaction volume and transaction amount sharply declined compared to 2021, with the decline in apartments being the most pronounced.”