Seoul apartment where the transaction cliff continues … Jeon/monthly rental has the highest number of transactions

Flat sales, July 643… ‘Lowest’ since 2006
116,000 rental transactions in the first half… monthly rent ‘surge’

View of downtown apartments and reconstruction sites from Namsan, Seoul. photo = Yonhap News

The number of apartment sales in Seoul remains at an all-time low. On the other hand, rental transactions such as jeonse and monthly rent are at an all-time high, showing polarization. As the market stagnates due to interest rate rises and economic instability, it is interpreted that the demand to buy houses has decreased and that the number of rental transactions, which is a real factor, has increased.

According to the Seoul Real Estate Information Plaza on the 19th, the number of apartment sales on the contract date was 643 in July, the lowest since statistics began to be collected in 2006. The minimum is expected to be rewritten again.

Although the deadline for filing is still within 30 days of the contract, there are still about ten days left, but given that the real estate market has effectively entered an ‘ice age’, it’ the possibility of adding more than 100 sales in the remaining period is expected to be small.

The share of apartment sales in Seoul is also falling. According to the Korea Real Estate Agency’s statistics on sales by housing type (as of the reporting date), out of 4,858 sales of all housing (single, multi-family, multi-family, townhouse, apartment) in Seoul in July last, 3,206 villas (multi-family row houses) were 66.0 of the total, accounting for %. Flats recorded a record low of 21.2% during the same period.

Real Estate Brokerage Real Estate Office located at Yeongdeungpo 1-dong, Yeongdeungpo-gu, Seoul.  photo = news 1

Real Estate Brokerage Real Estate Office located at Yeongdeungpo 1-dong, Yeongdeungpo-gu, Seoul. photo = news 1

Although the ‘trade cliff’ continues in the apartment sales market, the rental market such as jeonse and monthly rent is active. From the first half of this year, the monthly rental transaction for apartments in Seoul was found to be at an all-time high.

According to the real estate platform Jikbang, in the first half of this year, a total of 116,014 rental and rental transactions for apartments in Seoul recorded the highest transaction volume since 2011 when the actual transaction price was published. Jeonse was 68,426 and monthly rent was 47,588.

In particular, the proportion of monthly rental transactions is increasing rapidly. The share of monthly rent, which was 21.53% (24,988 cases) in the first half of 2019, was more than 30% to 24.17% in the first half of 2020 and 30.49% in the first half of 2021. Since then, from the first half of this year, is 41.01%, which shows that 4 out of every 10 rental transactions include monthly rent.

Ham Young-jin, head of the Big Data Lab Office, said, “Contrary to concerns that prices will rise due to a shortage of items for sale as tenants whose global drug renewal rights have expired since August this year, we the price jumped. significantly due to the abundant supply and rising interest rates,” said Ham Young-jin, head of Big Data Lab.

He added, “Rather, the number of cases of renewal of existing contracts is increasing due to the reduction in the price of Jeonse or the burden of financial costs. It is,” he assessed.

Reporter Lee Song-ryeol at Hankyung.com yisr0203@hankyung.com

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