"Can't Buy a House Forever Like This"… Record High Housing Sales Due to 'Panic Buying'

[Asia Economy Reporter Lee Chun-hee] The volume of housing sales transactions in the first half of this year has reached the highest level since statistics began to be compiled. Analysts suggest that the side effects of the government's stringent policies have caused housing prices to rise continuously, leading to increased 'panic buying' due to fears that it will become even harder to become a homeowner if one delays any longer.

According to the Ministry of Land, Infrastructure and Transport and the Korea Real Estate Board on the 22nd, the volume of housing sales transactions in the first half of this year was recorded at 620,878 cases. As of last month, it was 138,578 cases. Both figures represent the highest levels since housing transaction statistics began to be compiled in 2006.

These figures surpassed the previous records of 610,796 cases in the first half of 2015 and 129,907 cases in June 2013. If the current trend continues, the annual transaction volume this year may exceed the all-time high of 1,193,691 cases recorded in 2015.

By region, the volume of transactions in the Seoul metropolitan area increased the most. In the first half of this year, housing sales transactions in the metropolitan area reached 339,503 cases, a 138.4% increase compared to the same period last year. As of last month, it recorded 75,534 cases, a 180.3% increase compared to 26,944 cases last year.

Even considering the base effect of the housing market stabilizing somewhat in the first half of last year due to the impact of the September 13, 2018 real estate measures, there was a significant increase compared to the five-year average. The increase was 45.6% for the first half and 67.3% as of last month.

By type, the increase in apartment transactions was particularly notable. Last month, nationwide apartment sales transactions reached 102,482 cases, a 191.0% increase compared to the same period last year. Compared to the previous month, it increased by 78.5%, and compared to the five-year average, it rose by 88.8%. The cumulative total for the first half also surged by 128.1% year-on-year to 452,123 cases.

Monthly rental transactions also showed a continuous upward trend. Both the first half and last month's transaction volumes recorded the highest levels. The volume of monthly rental transactions in the first half was 1,126,261 cases, up 13.4% year-on-year and 25.4% compared to the five-year average. Last month's transaction volume was 187,784 cases, a 35.0% increase compared to the same month last year and a 37.9% increase compared to the five-year average.

However, since the monthly rental reporting system has not yet been introduced, the volume of monthly rental transactions is counted only for some contracts that have received a confirmed date.

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