Number and Transaction Amount of Commercial Real Estate Transactions Excluding Apartments in June 2024, Gangnam-gu Ranks First

Real estate transaction data company Silgeorae.com announced the 2024 commercial real estate transaction statistics. Starting from 2019, when the real estate market was most active in the past 10 years, the number of transactions and transaction amounts reached their peak until 2021.

Looking at the graph below, based on building sales, small building sales, building sales, and commercial-residential building sales, the total number of transactions in June 2019 across 25 districts of Seoul was 156.

[Information provided by Silgeorae.com]

However, the highest number of transactions was recorded in June 2020 (226 transactions) and June 2021 (342 transactions), then starting from June 2022 (213 transactions), the number of transactions fell by 38% compared to the previous year, continuing to decline to 116 transactions in June 2023. In June of this year, the number of transactions (134) increased by 16% compared to last year.

Additionally, looking at the actual transaction rankings for June 2024 in Seoul (25 districts) for overall building sales, small building sales, multi-family house sales, commercial-residential building sales, and land sales, Gangnam-gu ranked first with an average transaction amount per unit of 14.97 billion KRW, followed by Gangbuk-gu (2.18 billion KRW) in second place and Mapo-gu (2.35 billion KRW) in third place.

Especially in June of this year alone, Gangnam-gu ranked first in Seoul for average building sales including small buildings, with an average transaction amount per unit of 15.85 billion KRW, followed by Jongno-gu with 12.29 billion KRW in second place, and Mapo-gu with 4.36 billion KRW in third place.

However, real estate expert Park Jongbok, director of Naheyo Academy LLC, warned, “Except for certain areas, rushing to purchase real estate before the bubble disappears is a very risky idea,” urging caution.

He also stated that lowering loan interest rates and recovering the real estate bubble require more observation, and that a sufficient preparation process and knowledge will reduce the probability of failure and enable stable and proper real estate transactions.