Gyeonggi-do, Real Estate Realization Rate at 50% Level... Apartment Transactions Also Plunge 24%
[Asia Economy (Suwon) = Reporter Lee Young-gyu] The volume of apartment transactions in Gyeonggi Province has been declining this year.
Gyeonggi Province announced on the 23rd that the total real estate transaction volume in the province from January to August this year was 313,221 cases, a 7.2% decrease compared to 337,505 cases during the same period last year. In particular, transactions of apartments, which account for 51% of the total transaction volume, decreased by 24.4%, from 209,371 cases to 158,013 cases.
During this period, transactions of individual houses, land, and non-residential real estate (officetels) increased by 9.9%, 19.3%, and 57.2%, respectively.
Looking at the total real estate transaction volume by region, Hwaseong City recorded the highest with 32,768 cases, while Gwacheon City had the lowest with 519 cases.
Meanwhile, an analysis of the realization rate of 23,381 real estate transactions conducted in August showed that the average realization rate for apartments and individual houses in the province was 54%, while the realization rate for land was 48%.
Compared to the government's '2021 expected realization rates,' the individual house realization rate (55.9%) is similar, but the rates for apartments (70.2%) and land (68.6%) are significantly lower.
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A provincial official explained, "Along with the rise in real estate prices, the lack of authority of metropolitan local governments over official price tasks has made it difficult to improve the real estate realization rate." He added, "Gyeonggi Province is making efforts to enhance the realization rate, including proposing to the central government to delegate the authority for investigation and evaluation of standard land and housing to metropolitan local governments."
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