Instead of Expensive Apartments, Villas... Seoul Villa Purchase Share Hits Record High at 65%

[Image source=Yonhap News]

[Asia Economy Reporter Ryu Taemin] As apartment prices in Seoul soar to unprecedented heights, the villa market is enjoying a ripple effect. In March, villas (multi-family and row houses) accounted for 65% of sales transactions in the Seoul area.

According to an analysis of housing sales transaction volumes by type conducted by real estate information provider Kyeongjemanlab using data from the Korea Real Estate Board on the 4th, the total number of housing sales transactions in Seoul last March was recorded at 5,098. Among these, villa sales transactions numbered 3,303, accounting for 64.8% of all housing sales transactions. This is the highest monthly proportion since the Korea Real Estate Board began compiling related statistics in 2006.

The proportion of villa sales in Seoul has steadily increased since last year. From December last year through March this year, it exceeded 60% for four consecutive months. On an annual basis, it recorded 51.1% last year, marking an all-time high, and this proportion has continued to grow this year.

By region, the villa sales proportion in Gangbuk-gu (84.5%) and Gangseo-gu (83.3%) exceeded 80%. Last month, more than 8 out of 10 housing sales transactions in these two districts were villas.

Following were Yangcheon-gu (79.7%), Geumcheon-gu (74.5%), Eunpyeong-gu (72.8%), Songpa-gu (72.6%), Dobong-gu (71.9%), Gangdong-gu (71.7%), Guro-gu (69.8%), Mapo-gu (67.2%), Jungnang-gu (66.9%), Dongjak-gu (66.3%), and Gwanak-gu (64.9%).

Until 2020, monthly apartment sales volumes were typically 2 to 3 times higher than those of villas. This was because villas were less frequently traded, perceived as less liquid, and their prices did not rise as much, leading housing demanders to generally prefer apartments over villas.

However, due to fatigue from the prolonged surge in apartment prices, combined with loan regulations and pressure from interest rate hikes, apartment sales began to decline from the second half of last year. In March this year, apartments accounted for 24.2% of total housing sales transactions, marking the lowest monthly proportion since the related statistics began being compiled.

Hwang Hansol, a research fellow at Kyeongjemanlab, explained, “As Seoul apartment prices soar, buyers who want to own a home have no choice but to turn their attention to relatively affordable villas. Expectations for deregulation of redevelopment projects by the next government also seem to have contributed to the increased proportion of villa purchases.”

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