July Nationwide Housing Sales Volume Down 37% Year-on-Year... 'Transaction Cliff' Deepens

[Image source=Yonhap News]

[Asia Economy Reporter Kangwook Cho] Last month, the volume of housing sales transactions decreased by more than 37% compared to a year ago. Although record-high transactions continue to occur as housing prices remain sharply elevated, the overall transaction volume is significantly declining, indicating a persistent 'transaction cliff' situation.

The Ministry of Land, Infrastructure and Transport announced on the 31st that the total number of housing sales transactions in July was 88,937, a 37.1% decrease compared to 141,419 transactions in the same month last year. This figure is similar to the previous month (88,922 transactions), and the cumulative sales volume from January to July was 648,260, down 15.0% from 762,297 during the same period last year.

Housing transaction volume in Seoul was 11,014, showing a 58.7% decrease compared to 26,662 a year ago. The metropolitan area (42,074 transactions) increased by 0.1% compared to the previous month but decreased by 44.4% compared to the same month last year. Transactions in provincial areas (46,863) decreased by 0.1% from the previous month and by 28.7% compared to the same month last year.

By housing type, apartments (59,386 transactions) increased by 2.6% compared to the previous month but decreased by 42.1% compared to the same month last year. Non-apartment housing (29,551 transactions) decreased by 4.9% from the previous month and by 23.8% compared to the same month last year.

The total volume of Jeonse and Wolse rental transactions in July (based on the reporting date), combining rental reporting system data and fixed-date reporting data, was 203,251. This represents an increase of 1.3% from the previous month (200,547) and a 10.9% increase compared to the same month last year (183,266).

Jeonse transactions (113,746) decreased by 1.6% from the previous month but increased by 1.1% compared to the same month last year.

Wolse transactions (89,505) increased by 5.4% from the previous month and by 26.4% compared to a year ago. Based on cumulative data up to July, the share of Wolse transactions rose to 42.3%, up 2.0 percentage points from 40.3% in the same month last year.

By region, Jeonse and Wolse transactions in the metropolitan area (138,541) increased by 10.3% compared to a year ago, and in provincial areas (64,710) increased by 12.3%. Apartment transactions (96,596) rose by 6.5%, and non-apartment housing (106,655) increased by 15.2% compared to the same month last year.

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