One in Five New Villa Jeonse Transactions in Seoul Are 'Kkangtong Houses'... Gangseo-gu Has the Most

Platform Dabang Survey Results

Gangseo 53.3% · Yangcheon 48.7% Empty Housing

Empty Jeonse Occurs in All 22 Autonomous Districts Except Nowon, Yongsan, and Jung-gu

[Asia Economy Reporter Kim Min-young] In the first half of this year, one out of five new villa (row house/multi-family) jeonse transactions in Seoul was found to be an empty house. Among the 25 autonomous districts in Seoul, Gangseo-gu was found to have the highest proportion of empty houses.

On the 5th, real estate platform Dabang conducted a full survey of 3,858 jeonse transactions of newly built villas in Seoul constructed in 2021 and 2022, based on the Ministry of Land, Infrastructure and Transport's actual transaction price data. It was found that 21.1% (815 cases) of all jeonse transactions in the first half of this year had a jeonse price ratio exceeding 90%. The jeonse price ratio is the ratio of the jeonse price to the sale price, and the industry generally considers a jeonse price ratio over 80% to pose a high risk of empty jeonse. Among these, 593 cases had jeonse prices equal to or higher than the sale price.

By district, among the total 694 jeonse transactions in Gangseo-gu, 370 cases (53.3%) were classified as empty houses. In particular, Hwagok-dong accounted for 304 cases, making up 82.2% of Gangseo-gu's empty houses, indicating a high proportion. Hwagok-dong in Seoul is one of the representative areas with many villas such as multi-family, row houses, detached, and semi-detached houses. Due to the nearby Gimpo Airport, many areas are subject to height restrictions, resulting in many villas around 10 floors, and housing prices are lower than neighboring areas, making it a neighborhood with high residential demand.

The next highest area was Yangcheon-gu, where 113 out of 232 total jeonse transactions (48.7%) had a jeonse price ratio exceeding 90%. Gwanak-gu had 44 out of 91 cases (48.4%), and Guro-gu had 42 out of 114 cases (36.8%), all with empty house ratios higher than the Seoul city average.

In Jongno-gu, Dobong-gu, and Seodaemun-gu, although the number of new villa jeonse transactions was not large at 14, 45, and 41 cases respectively, the number of empty houses was recorded as 4 (28.6%), 11 (24.4%), and 7 (17.1%) respectively. On the other hand, Nowon-gu, Yongsan-gu, and Jung-gu had no transactions classified as empty jeonse.

A Dabang official said, "Some consider the standard for empty houses to be 80% of the sale price, so taking this into account, the actual proportion of empty houses is estimated to be higher," adding, "With interest rate hikes expected in the second half of the year, the risk of exposure to empty jeonse due to missing transaction volume and falling sale prices may increase further."

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