In the second quarter of this year, both the nationwide real estate sales transaction volume and transaction amount increased compared to the previous quarter. In particular, the apartment transaction volume in Gyeonggi Province in the second quarter of this year led the rise in apartment transactions, increasing by 76.2% compared to the same period last year. The previously sluggish nationwide commercial and office building transaction volume also showed a slight increase in the second quarter.
According to an analysis of nationwide real estate sales transactions by type in the second quarter of this year based on actual transaction price data from the Ministry of Land, Infrastructure and Transport by Real Estate Planet, a big data and AI-based commercial real estate specialist company, the nationwide real estate sales transaction volume in the second quarter was 275,370 cases, a 12.9% increase compared to the first quarter (243,938 cases). The sales transaction amount also recorded 85.498 trillion KRW, up 27.8% from the previous quarter (66.9254 trillion KRW).
By type, transaction volumes showed an upward trend across all categories compared to the previous quarter. Apartments showed the largest increase at 24.2% compared to the first quarter, followed by △townhouses and multi-family houses at 22.9%, △commercial and office buildings at 21.2%, △detached and multi-household houses at 21.1%, △factories and warehouses (collective) at 16.2%, and △shopping centers and offices at 15%.
Except for a slight decrease (3.5%) in factories and warehouses (general), sales transaction amounts increased across all types compared to the previous quarter. The largest increase was seen in shopping centers and offices (52.9%), followed by commercial and office buildings (51.9%), apartments (34.2%), detached and multi-household houses (30.4%), and townhouses and multi-family houses (29.8%).
Real Estate Planet explained, "Compared to the second quarter of last year, sales transaction volume is still down 20.5% and sales transaction amount down 19.4%, but with an overall upward trend led by apartments, the second half performance is expected."
Active Apartment Transactions in Q2... The Only Category with Increased Volume and Amount Compared to the Same Period Last Year
In the second quarter real estate market, apartment transactions stood out with a noticeable increase. The total number of apartment sales transactions in Q2 was 105,769, up 24.2% from Q1 this year. The sales transaction amount in Q2 was 43.6617 trillion KRW, a 34.2% increase from the previous quarter and approximately 66.9% higher than the same period last year.
Among major regions, Sejong City was the only area to see a decrease in both sales transaction volume (-5.4%) and amount (-8.9%), while all other 16 metropolitan cities and provinces nationwide recorded double-digit growth rates.
The region with the highest transaction volume was Gyeonggi Province. During Q2, 28,457 transactions were concluded in Gyeonggi, accounting for 26.9% of the total market. The transaction amount was also the highest among the 17 metropolitan cities and provinces nationwide at 14.2224 trillion KRW, representing 32.6% of the total. Compared to the same period last year, Gyeonggi’s transaction volume and amount increased by 76.2% and 97%, respectively, driving the nationwide real estate market upward.
Q2 Commercial and Office Building Transaction Volume Up 21.2% from Previous Quarter... Transaction Amount Up 51.9%
In the second quarter, nationwide commercial and office building sales transaction volume totaled 3,478 cases, and transaction amount was 7.8376 trillion KRW, up 21.2% and 51.9% respectively from the first quarter. By region, transaction volumes increased compared to the previous quarter in all areas except Daegu (16%) and Jeju (22.8%). Unlike apartments, Sejong City’s commercial and office building market boomed, with Q2 transaction volume surging 133.3% compared to the previous quarter. This was followed by Seoul (46.8%), Chungbuk (43.5%), Gwangju (43.1%), and Jeonbuk (36.7%). However, compared to the second quarter of last year, both transaction volume and amount are still down by half.
Officetel Transaction Volume and Amount Slightly Up from Q1... Sejong City Sales Volume Up 344.4%
The officetel market in the second quarter of 2023 fell 52.4% in volume and 53.3% in amount compared to the same period last year, but showed slight increases in transaction volume (2.3%) and amount (9.2%) compared to the previous quarter.
Among the 17 metropolitan cities and provinces nationwide, Sejong, Daejeon, and Jeju showed significant growth. In particular, Sejong City’s transaction volume surged 344.4% and sales transaction amount soared 293% compared to Q1 this year, contrasting with the sluggish apartment market.
Jung Soo-min, CEO of Real Estate Planet, said, "In the second quarter, nationwide real estate transactions showed an overall upward trend not only in apartments but across all types, signaling a green light for a soft landing of the market. However, monthly fluctuations suggest it is premature to say the market has fully recovered, so close monitoring is necessary."
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