Frozen Housing Transactions... Nationwide Transaction Volume Down 19.9% and Unsold Units Up 25.7%

Apartment view around Seoul / Photo by Hyunmin Kim kimhyun81@

[Asia Economy Reporter Ryu Tae-min] As fatigue over rising housing prices and the government's tightening of loan regulations rapidly cool housing demand, the volume of transactions in Seoul and the metropolitan area has significantly decreased. In some provinces, unsold housing inventory is also accumulating, leading to forecasts that housing prices will remain stagnant for the time being.

According to the 'December Housing Statistics' announced by the Ministry of Land, Infrastructure and Transport on the 4th, the nationwide housing sales transaction volume (based on reporting date) in December last year totaled 53,774 cases. This represents a 19.9% decrease compared to the previous month (67,159 cases) and a 61.7% decrease compared to the same month last year (140,281 cases). The cumulative housing sales transaction volume up to December last year was 1,015,171 cases, a 20.6% decrease compared to the same period last year (1,279,305 cases).

In December, the metropolitan area (21,573 cases) saw an 18.2% decrease compared to the previous month, while provinces (32,201 cases) experienced a 21.1% decrease, indicating a larger decline in transaction volume in the provinces than in the metropolitan area. By type, apartments (30,484 cases) decreased by 25.9% compared to the previous month, whereas non-apartments (23,290 cases) decreased by 10.5%. This is interpreted as demand somewhat shifting from rapidly rising apartments to villas and officetels.

The volume of jeonse and wolse (monthly rent) transactions in December (based on reporting date) was 215,392 cases. This is an 11.6% increase compared to the previous month (192,990 cases). The cumulative volume of jeonse and wolse transactions up to December (2,351,574 cases) also increased by 7.4% compared to the same period last year (2,189,631 cases).

The metropolitan area (140,702 cases) saw a 9.6% increase compared to the previous month, and provinces (74,690 cases) saw a 15.6% increase. Apartments (106,289 cases) increased by 12.5%, and non-apartments (109,103 cases) increased by 10.8%. By lease type, jeonse transactions were 115,989 cases, a 9.0% increase compared to the previous month, and wolse transactions (99,403 cases) increased by 14.8%.

Apartment complex in Seoul area (Photo by Yonhap News)

Nationwide Unsold Housing Increased 25.7% Month-on-Month... Provinces Surge 28.4%

As buyer sentiment weakens, unsold housing is also increasing. As of the end of December, the total number of unsold houses nationwide was 17,710, a 25.7% increase compared to the previous month (14,094 units).

The metropolitan area recorded 1,509 units, a 2.5% increase from the previous month (1,472 units), while the provinces increased sharply by 28.4%, from 12,622 units to 16,201 units in one month. Until September last year, the provinces showed a decreasing trend in unsold housing due to an overheated real estate market, but recently some areas are seeing an increase again.

By size, medium-to-large unsold housing units exceeding 85㎡ numbered 1,019, a 153.5% increase compared to the previous month (402 units). Units 85㎡ or smaller totaled 16,691, a 21.9% increase compared to the previous month (13,692 units).

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