Seoul Metropolitan Area Housing Sales in September Drop 10% in One Month... 'Transaction Cliff' Deepens

Seoul Metropolitan Area Transactions from January to September Down 19.6% YoY
Apartment Transaction Decline More Pronounced than Villa
Monthly Jeonse and Wolse Decrease... Still Higher than a Year Ago

The 'transaction cliff' phenomenon in the housing market is intensifying due to the burden of soaring house prices and the impact of loan regulations by financial authorities. Although the full-scale autumn moving season began after Chuseok, the number of sales transactions is sharply declining as fewer people are willing to buy homes. The photo shows listings posted at a real estate agency in Seoul on the 19th. Photo by Kim Hyun-min kimhyun81@

Housing sales transactions in the Seoul metropolitan area have dropped by more than 10% within a month. The cumulative transaction volume for this year has decreased by nearly 20%. Analysts suggest that the 'transaction cliff' is accelerating as buying demand freezes due to government loan regulations and other factors.

According to housing statistics released by the Ministry of Land, Infrastructure and Transport on the 2nd, the total number of housing sales transactions in September was 81,631 based on the reporting date. This represents a decrease of 8.3% compared to the previous month (89,057 transactions) and 0.4% compared to the same month last year (81,928 transactions).

The cumulative housing sales transactions from January to September this year also totaled 818,948, down 11.9% compared to the same period last year (929,497 transactions).

The decline in transactions was more pronounced in the metropolitan area than in other regions. During this period, the metropolitan area recorded 37,225 transactions, a decrease of 10.7% compared to the previous month and 2.3% compared to the same month last year. On a cumulative basis through September, the number was 399,307, down 19.6% from a year ago.

In contrast, other regions recorded 44,406 transactions, down 6.3% from the previous month but up 1.3% compared to the same month last year.

By type, apartments (55,191 transactions) saw a significant decline, down 9.8% from the previous month and 4.9% from the same month last year. Non-apartment types (26,440 transactions) decreased by 5.2% compared to the previous month but increased by 10.7% compared to the same month last year. This is interpreted as sales demand shifting from apartments to non-apartment types such as villas, as apartment prices have recently surged.

In fact, on a cumulative basis from January to September, apartment transactions (548,761) decreased by 18.4% compared to the same period last year, while non-apartment transactions (270,187) increased by 5.0%.

The 'transaction cliff' phenomenon in the housing market is intensifying due to the burden of soaring house prices and the impact of loan regulations by financial authorities. Although the peak moving season in autumn has officially begun after Chuseok, the number of sales transactions is sharply declining as fewer people are willing to buy homes. The photo shows listings posted at a real estate agency in Seoul on the 19th. Photo by Hyunmin Kim kimhyun81@

The total number of monthly rental and lease transactions nationwide in September was 179,625. This is a 15.1% decrease compared to the previous month (211,462 transactions) but a 2.6% increase compared to the same month last year (175,126 transactions).

The cumulative monthly rental and lease transactions from January to September totaled 1,753,227, a 5.6% increase compared to the same period last year (1,660,008 transactions).

In the metropolitan area (124,674 transactions), there was a 15.0% decrease compared to the previous month and a 3.5% increase compared to the same month last year. In other regions (54,951 transactions), there was a 15.3% decrease compared to the previous month and a 0.6% increase compared to the same month last year.

For apartments (86,942 transactions), there was a 13.7% decrease compared to the previous month and a 1.4% increase compared to the same month last year. Non-apartment types (92,683 transactions) also decreased by 16.3% compared to the previous month but increased by 3.7% compared to the same month last year.

Looking at transaction types, jeonse (long-term lease) transactions (97,285) decreased by 16.6% compared to the previous month, while wolse (monthly rent) transactions (82,340) decreased by 13.2% compared to the previous month.

[Image source=Yonhap News]

As of the end of September, the total number of unsold houses nationwide was 13,842, a 6.9% (1,022 units) decrease compared to the previous month (14,864 units).

The number of unsold houses has been continuously decreasing, with 28,309 units in September last year, 17,130 units in January this year, and 15,660 units in May.

In the metropolitan area, there were 1,413 unsold units, a 19.4% increase compared to the previous month (1,183 units), while other regions had 12,429 units, a 9.2% decrease compared to the previous month (13,681 units).

Unsold houses after completion numbered 7,963, a 2.6% decrease compared to the previous month (8,177 units).

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