One in Five Apartment Transactions in Seoul Are 'Small Apartments'... Highest Monthly Record Ever

Highest Share of Small Apartment Transactions Since Statistics Compilation
Actual Transaction Prices Rise Over 100 Million Won in One Year
Seoul Apartment Prices Surge, Attributed to Loan Regulations

[Asia Economy Reporter Hwang Seoyul] In January of this year, the proportion of small apartment purchase transactions in Seoul reached an all-time high on a monthly basis. It is analyzed that demand concentrated on small apartments with less burden due to the increase in the base interest rate and loan regulations.

On the 16th, Economic Manlab, a real estate information provider, analyzed the monthly apartment transaction volume of the Korea Real Estate Board and found that among the 1,281 apartment sales transactions in Seoul last January, the proportion of apartment sales transactions with an exclusive area of 40㎡ or less (275 transactions) was 21.5%. This is the highest figure since the Korea Real Estate Board began compiling monthly statistics in 2006.

As the proportion of small apartment purchases increased, apartment prices also rose. According to the Ministry of Land, Infrastructure and Transport’s actual transaction price statistics system, a 33.18㎡ unit in Saseum 3 Complex located in Wolgye-dong, Nowon-gu, Seoul, was traded for 470 million KRW (11th floor) last January, up 138 million KRW from 332 million KRW a year earlier.

Also, a 33.76㎡ unit in Sinnae 11 Complex Daemyeong in Sinnae-dong, Jungnang-gu, was traded for 392 million KRW (14th floor) in January last year, but the same floor unit was sold for 528 million KRW in January this year, rising 136 million KRW (34.7%) over one year.

A 35.1㎡ unit in Hanyang 2nd Complex in Ssangmun-dong, Dobong-gu, was also traded for 295 million KRW (11th floor) on January 27 last year and for 397 million KRW (9th floor) on January 12 this year, showing an increase of 102 million KRW (34.6%).

Hwang Hansol, a research fellow at Economic Manlab, stated, “In recent years, Seoul apartment prices have surged rapidly, and with loan limits reduced due to loan regulations, it seems that demand for relatively less burdensome small apartments is increasing.”

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