Impact of COVID-19... Over 10% Decline in Accommodation Facility Sales in Q1

Sangga Information Research Institute "Jeju Island Sales Volume Increased but Average Sales Price per 3.3㎡ Plummeted"

[Asia Economy Reporter Onyu Lim] The volume of accommodation facility sales transactions in the first quarter of this year decreased by more than 10% compared to the same period last year. This is analyzed to be due to the contraction of domestic tourism sentiment caused by the impact of the novel coronavirus disease (COVID-19).

On the 21st, according to an analysis by the Commercial Information Research Institute of the Ministry of Land, Infrastructure and Transport's real transaction price disclosure system, the number of accommodation facility sales transactions in the first quarter was 1,655. This is a decrease of 231 transactions, or 12.2%, compared to 1,886 transactions last year.

Among the metropolitan areas and provincial metropolitan cities, Incheon showed a notable decline. The number of accommodation facility transactions in Incheon in the first quarter was 32, down by 30 from 62 in the same period last year. This was followed by ▲Busan (131 → 115, decrease of 16) ▲Seoul (59 → 48, decrease of 11) ▲Ulsan (11 → 2, decrease of 9) ▲Gwangju (19 → 15, decrease of 4).

There were also regions where transactions increased. The number of accommodation facility transactions in Gyeonggi-do was 162, an increase of 26 from 136 in the same period last year. ▲Daejeon (16 → 36, increase of 20) ▲Daegu (17 → 24, increase of 7) also saw an increase in transaction volume.

Jeju Island also showed a significant increase, with 124 transactions compared to 57 in the same period last year, an increase of 67. However, the average sale price per 3.3㎡ dropped by 6.65 million KRW to 8.01 million KRW from 14.66 million KRW in the same period last year.

Researcher Hyuntaek Cho of the Commercial Information Research Institute said, "Due to the impact of COVID-19, the decrease in foreign tourists and the restraint on outings have dampened tourism sentiment, causing damage to the accommodation industry." He added, "Some accommodation businesses have come onto the market as urgent sales or auctions, but transactions are not proceeding well." He further noted, "Although COVID-19 is recently stabilizing, the accommodation industry is expected to maintain a depressed atmosphere for the time being."

This content was produced with the assistance of AI translation services.