"Effect of 1·3 Measures"... Real Estate Sales Volume and Transaction Amount Increase in Q1 This Year

Market Activation Compared to Q4 Last Year
Recovery Trend Present but Weaker Than a Year Ago
Commercial Real Estate Recovery Remains Slow

Thanks to the 1·3 measures and the stabilization of the base interest rate, real estate sales volume and transaction amounts in the first quarter of this year increased compared to the previous quarter.

On the 11th, Real Estate Planet, a commercial real estate specialist company based on big data and artificial intelligence, analyzed the Ministry of Land, Infrastructure and Transport's actual transaction price data (as of April 15) and found that the nationwide real estate sales volume in the first quarter of this year was 236,406 cases, a 15.5% increase compared to 204,666 cases in the fourth quarter of last year. The transaction amount also expanded by 26% to 64.0059 trillion KRW from 50.8054 trillion KRW in the previous quarter. Considering that the sales volume and transaction amount in the fourth quarter of last year were the lowest levels in the past five years, there is an analysis that the real estate market has entered a recovery phase.

However, compared to one year ago, sales volume (313,863 cases) and transaction amount (90.7543 trillion KRW) decreased by 24.7% and 29.5%, respectively, so it is expected that it will take time for a full recovery of the real estate market.

Real estate transactions in the first quarter of this year were led by apartments. Nationwide apartment transaction volume was 83,669 cases, a 77.9% increase compared to 47,035 cases in the previous quarter. The transaction amount was also recorded at 31.7505 trillion KRW, a 128.3% increase from 13.9083 trillion KRW in the previous quarter.

By region, apartment transaction volume in Seoul increased by 204.6% compared to the previous quarter, and all 17 cities and provinces nationwide saw increases in transaction volume, including Gyeonggi (138.8%), Sejong (117.3%), Incheon (116.3%), and Daegu (80.1%). In particular, apartment transaction volume in Incheon exceeded 2,000 cases in February this year, marking the first time in 17 months since September 2021.

On the other hand, the recovery of the commercial real estate market is somewhat slow. The nationwide commercial and office building transaction volume in the first quarter was 2,698 cases, a 3.6% decrease compared to 2,800 cases in the fourth quarter of last year. The transaction amount also fell to 4.657 trillion KRW, down 39.1% from 7.6484 trillion KRW in the previous quarter.

However, in Seoul, building transaction volume recorded the lowest level since 2008 with 52 cases in January this year, but transactions rebounded for two consecutive months with 97 cases in February and 104 cases in March.

Jung Soo-min, CEO of Real Estate Planet, said, "The real estate market in the first quarter was a period where various interpretations could arise as multiple indicators fluctuated," adding, "Although it will take some time for an overall real estate market recovery, signs of rebound are appearing in some real estate types and regions, so it is an important time to closely monitor market changes and respond promptly."