Looking at the Non-Apartment Market in July... 'Owner-Occupied' Multi-Family Houses and 'Investment' Multi-Unit Houses Purchases Increase

Jeonse Transactions Decrease by 16% While Sales Rise by 12%
Increase in Single-Family and Multi-Family Home Purchases in Areas with Positive Factors like Public Redevelopment

[Asia Economy Reporter Onyu Lim] In July, the monthly rental and lease transactions of detached, multi-family, and row houses in Seoul decreased, while sales transactions increased. It is analyzed that there has been a buying movement for multi-family and row houses mainly by real demand buyers who were pushed out of the apartment market, along with an increase in purchases of detached and single-family houses due to development prospects.

According to Dabang on the 26th, the total monthly rental and lease transactions of detached, multi-family, and row houses in Seoul last month were 16,816, down 14.0% compared to the previous month. On the other hand, sales transactions increased by 896 compared to last month, rising 12.0% to 8,392 (row houses and multi-family 7,170, detached and single-family 1,222).

Looking at the monthly rental and lease transactions, all 25 districts in Seoul saw a decrease compared to the previous month. In particular, the decrease was significant in Gangbuk, Gangnam, Geumcheon, Guro, Songpa, and Gwanak districts, with a drop of about 24-27%. The average monthly rental deposit by area was 157.06 million KRW for 30㎡ or less, which rose about 3% (4.76 million KRW) compared to the previous month. The district with the highest monthly rental deposit was Seocho-gu, recorded at 246.16 million KRW per 30㎡, followed by Gangnam-gu, Jung-gu, Gangseo-gu, and Songpa-gu.

In sales, the increase in row house and multi-family sales was remarkable. The transaction volume increased by 13.3% (839 transactions) compared to last month. For row houses and multi-family houses, many transactions occurred in Eunpyeong-gu (838 transactions) and Gangseo-gu (800 transactions), with Gangseo-gu showing about a 74% increase compared to June. The average sales price calculated based on the exclusive area of row houses and multi-family houses was 234.6 million KRW for 30㎡ or less and 368.09 million KRW for 85㎡ or less. For detached and single-family house sales, many transactions were recorded in Seongbuk-gu (88 transactions) and Gangbuk-gu (87 transactions).

For detached and single-family houses, 62.7% of total sales were transactions of older houses built over 30 years ago. In the case of row houses and multi-family houses, 69.8% of transactions were for houses built less than 20 years ago, mainly after the 2000s, showing a split between purchases for real demand and redevelopment investment.

A representative from the Dabang Data Analysis Center said, "The monthly rental deposit in the one- and two-room market is sharply rising by 3-6% within a month," adding, "As the supply of monthly rentals has decreased due to the Housing Lease Protection Act 2, demand is expected to increase." He continued, "In the sales market, purchases of row houses and multi-family houses are increasing mainly by real demand buyers, and in areas with development prospects such as the expansion of public redevelopment, transactions of detached and single-family houses are also increasing."

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