Is the Real Estate Transaction Cliff in Gyeonggi-do Becoming a Reality?…65.5% Sharp Decline in Apartment Transactions from January to March This Year

[Asia Economy (Suwon) = Reporter Lee Young-gyu] Real estate transaction volume in Gyeonggi-do has plummeted by more than 65% this year.

Based on taxable data reported for acquisition, Gyeonggi-do analyzed real estate transaction trends and realization rates for the first quarter of 2022 (January to March). The total number of real estate transactions in Gyeonggi-do from January to March was 63,574, a 48.4% decrease compared to 123,202 transactions during the same period last year.

In particular, transactions of multi-family housing (apartments, etc.) sharply dropped from 64,842 to 22,357, a decrease of 65.5%. Individual house transactions also fell by 44.2%, from 4,019 to 2,243. In contrast, land and officetel transactions decreased relatively less, by 28.1% and 30.3%, from 49,527 to 35,617 and from 4,814 to 3,357, respectively.

However, housing transactions showed a slight rebound starting in February after hitting a low in January this year, with March transactions increasing by 23.7% to 9,736 compared to 7,873 in the previous month, marking two consecutive months of growth, which is noteworthy.

Meanwhile, analyzing the realization rate of 50,522 real estate transactions in Gyeonggi-do during the first quarter, the annual average realization rates for multi-family housing and individual houses were 53% and 52%, respectively, while land was at 47%.

Due to last year's rise in real estate prices, the realization rates for housing and land slightly decreased by about 2% compared to the previous year's average. Non-residential real estate, including officetels and factories (including knowledge industry centers), maintained similar levels to last year at 59% and 57% for shops, respectively.

The realization rate refers to the ratio of the publicly announced price to the actual transaction price. The government's target realization rates for 2022 are 71.5% for multi-family housing, 58.1% for individual houses, and 71.6% for land.

Looking at detailed data by transaction amount, apartments show average realization rates of 47% for transactions under 300 million KRW and 61% for those over 900 million KRW. In contrast, individual houses show 60% and 45%, respectively, indicating that the publicly announced prices for high-priced individual houses relatively fail to reflect market prices.

For land, the realization rate is 46% for transactions under 300 million KRW, while it is 54% for those over 900 million KRW, showing that lower-priced land tends to have lower publicly announced prices.

A Gyeonggi-do official emphasized, "Despite the basic policy to increase the realization rate of publicly announced prices, the realization rate is actually declining. We will strengthen the verification function for publicly announced prices to improve unreasonable parts and strive to enhance the credibility of publicly announced prices."

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