Due to worsening business conditions... Nationwide factory and warehouse transaction value in October falls below 1 trillion won

Analysis of Actual Transaction Prices for Factories and Warehouses by Ministry of Land, Infrastructure and Transport
October Transaction Amount Down 6.1% from Previous Month
Average Monthly Warehouse Transaction Amount This Year Down 10% from Last Year

The nationwide factory and warehouse sales amount in October fell below 1 trillion won. This is the first time since December last year. It is analyzed that the decrease in logistics center transactions due to interest rate burdens and demand slowdown influenced this decline.

On the 4th, Allsquare, a comprehensive commercial real estate service company, investigated the actual transaction prices of factories and warehouses nationwide in October based on data from the Ministry of Land, Infrastructure and Transport. The transaction amount (975.1 billion won) decreased by 6.1% compared to the previous month. It is the first time in 10 months since December last year that the nationwide factory and warehouse transaction amount fell below 1 trillion won. The number of transactions also decreased by 6.4% to 437 cases.

The development environment worsened due to high interest rates and rising construction costs, and the demand for logistics centers from e-commerce companies declined, impacting the warehouse facility transaction market. The nationwide warehouse facility transaction amount in October was only 43.3 billion won. Compared to January, when the transaction amount was the highest this year (814.5 billion won), it plummeted by 94.7%.

Compared to last year, the warehouse market transactions also show sluggishness. From the beginning of this year to October, the average monthly transaction amount for nationwide warehouse facilities was 331.4 billion won. This is about a 10% decrease compared to the average monthly transaction amount (367.3 billion won) during the same period last year.

Ryu Gang-min, head of the Allsquare Research Center, analyzed, "As the year-end approaches when investors' budgets are exhausted, the transaction market often shows sluggishness," adding, "Even considering this, the biggest reason is the deterioration of business conditions."

By region, the transaction amount for factories and warehouses in Gyeonggi was 424.6 billion won, down 7.1% from the previous month. Seoul recorded 4.4 billion won, a decrease of 73.7%. Daejeon, where only one warehouse facility transaction occurred in October, saw a sharp drop of 95.8% to 400 million won. Daegu decreased by 52.9% to 23.9 billion won, and Busan fell by 39.8% to 53.7 billion won.

On the other hand, Ulsan’s factory and warehouse transaction amount (52.3 billion won) increased about fourfold compared to the previous month. The factory transaction in Yeonam-dong (22.7 billion won) led the growth. Jeonnam increased more than twice to 26.9 billion won. Factories in Naju and Suncheon in this region were traded in the 4 billion won range.

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