August Real Estate Transaction Volume Rebounds After 2 Months... Non-Apartment Sector Slump Continues

Real estate transaction volume nationwide in August rebounded for the first time in two months. Both the transaction volume and transaction amount exceeded those of the same month last year, showing double-digit growth rates. However, only apartment transactions increased, while non-apartment sectors remained sluggish, indicating that it is too early to be optimistic.

[Image source=Yonhap News]

On the 19th, Real Estate Planet, a commercial real estate specialist company, released a report analyzing the characteristics of real estate sales transactions by type nationwide in August this year, based on the Ministry of Land, Infrastructure and Transport's actual transaction data (as of October 1).

The nationwide real estate transaction volume in August was 87,250 cases, up 4.2% from the previous month (83,720 cases). Although the increase was slight, it marked a turnaround for the nationwide real estate market, which had struggled with two consecutive months of declining transaction volumes since May this year. The transaction amount also rose by 3.8% from the previous month (27.7095 trillion KRW) to 28.7585 trillion KRW. Compared to August last year, the transaction volume and amount were 79,172 cases and 21.6659 trillion KRW, respectively, showing increases of 10.2% and 32.7% year-on-year.

[Image provided by Budongsan Planet]

However, while overall real estate transactions increased, different market sentiments were detected when examined by type. Compared to July, transaction volumes in August increased for commercial stores and offices (11.3%), apartments (7.2%), row houses and multi-family houses (5.6%), single-family and multi-household houses (2.3%), and land (1.8%). On the other hand, factories and warehouses (general) decreased by 10.9%, commercial and office buildings by 9.4%, factories and warehouses (collective) by 7%, and officetels by 3.7%.

Also, compared to the same month last year, except for factories and warehouses (collective) (8.1%) and apartments (116.4%) which increased, all other types declined in the following order: officetels (30.4%), row houses and multi-family houses (22.9%), single-family and multi-household houses (18.6%), land (18%), and commercial and office buildings (17.3%). This suggests that it will take more time for the overall real estate market to recover.

Apartment sales transactions in August reached 36,386 cases, a 7.2% increase from the previous month’s 33,945 cases. This accounted for 41.7% of nationwide real estate transactions. The transaction amount also rose by 5.8% from the previous month (14.7172 trillion KRW) to 15.5708 trillion KRW, accounting for more than half of the nationwide transaction volume.

Among the 17 provinces and metropolitan cities nationwide, apartment transactions increased in all regions except Ulsan, where the transaction volume decreased by 6.6% compared to the previous month. The increase ranged from a minimum of 3.8% in Chungbuk to a maximum of 23.1% in Jeju. Transaction amounts also increased in all regions except Ulsan (down 10.5%) and Jeonnam (down 0.6%).

In particular, apartment transaction volumes have continued to rise sharply compared to last year. July’s transaction volume rose 96.4% year-on-year, and August’s volume also increased by 116.4% during the same period, showing a clear recovery trend. The transaction amount was also found to have increased by 242.1% compared to August last year.

Jung Soo-min, CEO of Real Estate Planet, said, “Both nationwide real estate transaction volume and transaction amount exceeded last year’s figures, mainly driven by apartments.” He added, “However, since some types and regions are still struggling, it is a time to closely monitor market trends rather than being prematurely optimistic.”

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