Nationwide Real Estate Ice Age "Apartment Transactions All Decrease Simultaneously"

Real Estate Planet, Nationwide Sales Transaction Characteristics Report for November Last Year
Transaction Volume Down 14.9% and Transaction Amount Down 19.1%...17 Provinces and Cities All Decline Simultaneously

Apartment complex in Gayang-dong. Photo by Jo Yongjun jun21@

In November, both the nationwide real estate transaction volume and transaction amount declined compared to the previous month. The transaction amount decreased for the third consecutive month. The transaction volume, which had slightly rebounded in October, also decreased. In particular, apartment transactions showed a simultaneous decline across all 17 metropolitan cities and provinces nationwide.

Real Estate Planet, a big data and AI-based commercial real estate specialist company, revealed this through its November 2023 nationwide real estate transaction characteristics report by property type, based on the Ministry of Land, Infrastructure and Transport's actual transaction price data (as of January 2, 2024).

The nationwide real estate transaction volume in November 2023 was 78,905 cases, and the transaction amount was KRW 22.2973 trillion. Compared to October, the transaction volume (80,262 cases) and transaction amount (KRW 24.5148 trillion) both fell by 1.7% and 9%, respectively. This is the second lowest figure following January's transaction volume (59,382 cases) and transaction amount (KRW 16.3007 trillion), which were the lowest for the year last year.

Compared to November 2022, the transaction volume (67,838 cases) rose by 16.3%, and the transaction amount (KRW 16.6912 trillion) increased by 33.6%.

However, when examining nationwide real estate transactions for November over five years from 2018 to 2023, 2022 recorded the lowest transaction volume and amount, followed by November last year as the second lowest.

Transaction volume increased by 19% for factories and warehouses (general), 12.9% for land, 5.6% for commercial office buildings, and 5.3% for factories and warehouses (collective). Except for these, all other types declined compared to October, ranging from a 2.3% decrease (shops and offices) to a 14.9% drop (apartments).

Transaction amounts rose compared to October by 29.7% for factories and warehouses (collective), 28.2% for factories and warehouses (general), 7.4% for land, 5% for officetels, and 1.7% for detached and multi-family houses. The remaining types decreased, ranging from a 6.3% drop (townhouses and multi-family houses) to a 19.1% decline (apartments).

Last November, the decline in apartments was particularly notable. Nationwide apartment transaction volume in November was 26,549 cases, down 14.9% from October's 31,192 cases, and the transaction amount fell 19.1% from KRW 11.4646 trillion in October to KRW 9.2794 trillion, marking the largest drop among all real estate types.

The region with the steepest decline in November was Sejong, where transaction volume dropped 31.3% from 316 cases in October to 217 cases, and transaction amount fell 31.8% from KRW 153.1 billion to KRW 104.3 billion. Additionally, compared to November 2022, Sejong was the only region where both transaction volume and amount decreased year-over-year, falling 2.3% and 1.7%, respectively.

Compared to October 2023, the regions with the next largest declines after Sejong were Seoul and Chungbuk. Based on November transaction volume, Chungbuk decreased by 22.5% to 1,277 cases, and Seoul dropped 21.7% to 1,798 cases. In terms of transaction amount, Seoul fell 24.5% to KRW 1.8359 trillion, and Chungbuk decreased 24.2% to KRW 255.1 billion, both showing declines in the 20% range.