This Year's Pre-sale and Move-in Rights Transactions Also Halved

National transaction volume at 48% of last year

Decrease in all areas except Gangnam and Jeju

Impact of resale restrictions in regulated areas

[Asia Economy Reporter Kim Min-young] Due to the government's resale restrictions in regulated areas, the market for apartment pre-sale rights and occupancy rights transactions has shrunk to about half the level of last year.

According to an analysis of actual transaction prices for apartment pre-sale rights and occupancy rights by Zigbang on the 22nd, as of the 16th, the total transaction amount nationwide was 20.8 trillion KRW. The transaction amount in the metropolitan area was 5.4 trillion KRW, and 15.4 trillion KRW in other regions. Compared to 2017, when the market was active, the nationwide amount is 35%, and the metropolitan area is only 18% of that level.

The transaction volume of pre-sale rights and occupancy rights also decreased to about half compared to last year. As of the 16th of this month, the transaction volume was 50,465 nationwide, 10,567 in the metropolitan area, and 39,898 in other regions. Compared to last year, this corresponds to 48.9% nationwide, 32.5% in the metropolitan area, and 56.5% in other regions.

By city and province, compared to last year, transaction volume and total transaction amount decreased in all areas except Gyeongbuk, Gyeongnam, and Jeju. Seoul's pre-sale and occupancy rights transaction volume this year was 237 cases, with a total transaction amount of 383.8 billion KRW. The transaction volume is estimated to be under 1,000 cases for the second consecutive year, and the total transaction amount is expected to fall below 1 trillion KRW for the first time since data collection began in 2008. Gyeonggi-do is also expected to record a total transaction amount below 10 trillion KRW for the first time since 2015 when it was 7 trillion KRW. The transaction volume in Gyeonggi-do falling below 10,000 cases is the first occurrence since 6,033 cases in 2013.

This market contraction is attributed to the government's extension of resale restrictions in designated adjustment areas, as well as the extension of the resale restriction period for private land in the metropolitan area's overconcentration control zones and growth management zones, and urban areas of provincial metropolitan cities, which has been in effect since September 22 of last year, until the ownership transfer registration.

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