Transaction Volume of Non-Apartment Properties Including Officetels Rebounds
In October, the nationwide real estate transaction volume recorded the second-lowest level since January this year, when it hit its lowest point, due to a decline centered on apartment sales.
On the 15th, Real Estate Planet, a big data and artificial intelligence (AI)-based commercial real estate specialist company, analyzed nationwide real estate sales in October based on the Ministry of Land, Infrastructure and Transport's actual transaction price data (as of the 1st of this month), revealing these results.
The total number of real estate transactions nationwide in October was 76,906, marking a decline for two consecutive months since August (87,378 transactions). It was also the second-lowest level following January (59,382 transactions), which had the lowest transaction volume this year. Compared to September (79,038 transactions), it decreased by 2.7%. The drop in transaction amount was even more significant than the volume. The transaction amount in October was 23.7187 trillion KRW, down 9.2% from the previous month (26.134 trillion KRW).
By type, apartment transaction volume was 31,123 cases, down 7.9% from the previous month (33,801 cases). The transaction amount also fell to 11.4085 trillion KRW, a 20.4% decrease from the previous month (14.3293 trillion KRW).
By region, Seoul showed the largest decline nationwide, with apartment transaction volume and amount dropping by 31.3% and 34.5%, respectively, compared to the previous month. Following Seoul, transaction volumes decreased in nine regions including Gyeonggi (19%), Incheon (12%), Sejong (11%), and Gwangju (9.3%). In terms of transaction amounts, 12 regions including Seoul, Gyeonggi (26.2%), Ulsan (17.4%), Gwangju (17.3%), and Incheon (16.4%) saw declines compared to the previous month.
Unlike September, when all transaction volumes decreased, volumes for single-family and multi-family houses (13.3%), row houses and multi-unit buildings (5.5%), officetels (3.8%), commercial and office buildings (2.5%), and shops and offices (0.8%) increased compared to the previous month.
In particular, officetel transaction volume (2,230 cases) rose 3.8% from the previous month (2,148 cases), breaking the downward trend that had continued since July and rebounding. However, the transaction amount was 432.5 billion KRW, down 7% from the previous month, showing a different trend from the volume.
Jung Soo-min, CEO of Real Estate Planet, said, "As apartment transactions, which have driven the nationwide real estate market, shrink, the overall transaction volume has been declining for two consecutive months. Although the upward trend compared to last year is maintained, the outlook for next year's real estate market remains uncertain due to key variables such as the continuation of high interest rates, government real estate policies, and economic stability."
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