Nationwide Commercial Building Transaction Volume Increases for Third Consecutive Month

April Nationwide Commercial Building Transactions Total 1,307
Rising for 3 Consecutive Months
Transaction Amount Down 34.4% from Previous Month
Decrease in Ultra-High-Price Deals
6 of Top 10 Transaction Amounts Located in Gangnam-gu, Seoul

On the 28th, a clear sky stretched over the city viewed from the 63 Square Observatory in Yeouido, Seoul. Photo by Jinhyung Kang aymsdream@

In April, the volume of commercial and office building transactions nationwide slightly increased compared to the previous month, but the transaction amount significantly decreased. This was mainly because buildings in relatively lower price ranges were traded compared to March.

According to Real Estate Planet, a commercial real estate specialist company, the total number of commercial and office building transactions nationwide in April was 1,307, an increase of 4 transactions (0.3%) from the previous month.

The transaction volume has been increasing for three consecutive months since January this year (1,034 transactions). This is the highest figure since August 2022 (1,297 transactions). However, the transaction amount was 2.6633 trillion KRW, down 34.4% from the previous month (4.0608 trillion KRW).

A representative from Real Estate Planet stated, "In March, there was a base effect due to multiple ultra-high-priced buildings being traded, including the 'Arc Place' in Yeoksam-dong, Gangnam-gu, Seoul, which was close to 800 billion KRW. The highest transaction price in April was the 'YD318' building located in Daechi-dong, Gangnam-gu, Seoul, sold for 105 billion KRW."

By region, Seoul recorded 177 transactions in April, with a transaction amount of 1.4019 trillion KRW. Compared to the previous month, the transaction volume decreased by 8.3%, and the transaction amount decreased by 53.5%. However, among the top 10 buildings by transaction amount in April, six are all located in Gangnam-gu, Seoul.

In Jeju, 22 transactions were recorded, representing a 57.1% increase from the previous month. The transaction amount also rose by 55.1% to 27.6 billion KRW.

Jung Soo-min, CEO of Real Estate Planet, said, "The nationwide commercial and office building transaction volume has risen for three consecutive months and is maintaining a good trend compared to the transaction volume trend over the past 20 months. Although the timing of the base interest rate cut has been delayed, there are signs of proactive investment movements by individual and corporate investors who are hopeful for a rate cut within the year," conveying the market sentiment.