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Seoul`s apartment transactions set a record high in 9 years

Seoul`s apartment transactions set a record high in 9 years

Posted March. 30, 2015 07:13,   

한국어

Transaction volume of apartments in Seoul is expected to set a new record high in March, while that of townhouses and multi-family houses is projected to reach a peak.

As of Friday, 11,489 apartment transactions have been made in Seoul during this month, based on the reported date, according to the Seoul Real Estate Information Square on Sunday. The figure is the biggest in nine years since 11,854 transactions were made in March 2006 and showed a sharp increase compared with 9,478 of February.,

The reason behind the increase in property transaction is analyzed that consumers have turned to buying houses as they failed to find jeonse (Korea’s unique lease system in which a renter makes a lump-sum deposit, around 50 percent to 80 percent of the market value, instead of paying monthly rent) houses in spring, the house moving season. In March, the transaction volume of townhouses and multi-family houses was 4,629, the biggest in seven years since March 2008 (7,342). Seoul`s Nowon district showed the biggest apartment transactions of 1,056, followed by Gangseo district (930), Gangdong district (815), Gangnam district (683) and Seocho district (675).

Real estate experts projected the transaction volume of townhouses and multi-family houses will increase continuously in the future. “As current residential house market is being led by actual end-users, rather than investors, sales prices are not likely to spike. While prices are stably maintained, the sales volume will continue to increase,” said Yang Ji-yeong, the research chief at the real estate consulting firm Real Today.

As of the end of February, the number of unsold apartments across the nation was 33,813, an 8.6 percent decrease from the previous month (36,985), continuing a decreasing trend for two consecutive months.



achim@donga.com