"Accumulated Supply and Weakening Demand
Recovery Unlikely in the Short Term"
In the third quarter of this year, both the number of transactions and the total transaction value of knowledge industry centers across the country fell to their lowest levels for any quarter in the past five years.
According to data analyzed by commercial real estate specialist Real Estate Planet on December 9, there were 520 sales transactions of knowledge industry centers nationwide in the third quarter, with a total transaction value of 208.9 billion won. This represents the lowest figures for both the number of transactions and total value since data collection began in 2021.
The decline is even more pronounced compared to the previous quarter. In the second quarter, there were 814 transactions with a total value of 349.2 billion won, meaning the number of transactions and transaction value dropped sharply by 36.1% and 40.2%, respectively.
Compared to the third quarter of last year, when there were 987 transactions totaling 449.3 billion won, the number of transactions decreased by 47.3% and the total value fell by 53.5%, effectively halving the market size in just one year.
However, despite the transaction drought, the average sale price showed a slight increase. In the third quarter, the nationwide average sale price per 3.3 square meters for knowledge industry centers was 16.29 million won. This is a 3.8% increase from the previous quarter's 15.69 million won and the highest price since the third quarter of last year, when it reached 18.79 million won.
Jung Sumin, CEO of Real Estate Planet, stated, "In the third quarter, the knowledge industry center market saw both transaction volume and value decline as supply pressures accumulated and demand weakened. Given that it is difficult for the market environment to improve at present, it will be hard to expect a clear recovery in the short term."
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