The selling prices of apartments in the metropolitan area, including Seoul, have decreased for four consecutive months. This indicates that the buying sentiment is likely to remain subdued due to loan regulations.
According to the housing statistics released by the Ministry of Land, Infrastructure and Transport on the 31st, the number of apartment transactions in Seoul was 3,773 in November, a decrease of 5.7% from the previous month.
The number of apartment transactions in Seoul soared to 9,618 in July of this year. However, from August onward, after the government began implementing loan regulations, the figures have shown a downward trend for four consecutive months. After recording 7,609 transactions in August, the figure dropped to 4,951 in September with the application of the Debt Service Ratio (DSR) step 2, and then fell further to 4,000 in October.
The transaction volume of dwellings in the Seoul area, including non-apartment transactions such as villas and officetels, is also declining. The transaction volume of dwellings in the Seoul area for November was 6,803, which represents a decrease of 5.0% from the previous month.
During the same period, the nationwide housing transaction volume fell to 49,114, down 13.2% from the previous month. Regionally, the housing transactions in the metropolitan area decreased by 12.9%, while the non-metropolitan area saw a 13.4% decrease. Although housing sales in the non-metropolitan area surged in October (31,568 transactions), the transaction volume in November fell back to 27,337, marking a decrease of 13.4% in just one month.
Last month, both housing transactions and jeonse (long-term rental) transactions decreased. The number of jeonse transactions in November was 191,172, which is a 9.5% decrease compared to the previous month. The decline was larger for non-apartments than for apartments. Apartment jeonse transactions fell to 97,259, down 9.0% from the previous month, while during the same period, non-apartments recorded 93,913 transactions, a decrease of 9.9% from October.
The decline in monthly rental transactions, including guaranteed monthly rent and half jeonse, was less pronounced than that in jeonse. The transaction volume for jeonse in November was 79,892, which represents a decrease of 12.6% from the previous month; however, the volume of monthly rental transactions was 111,280, down only 7.1%.
The issue of unsold dwellings appears to be slightly easing, particularly in the non-metropolitan area. As of the end of November, the total number of unsold dwellings was 65,146, down 1.0% from the previous month. In the metropolitan area, the number increased by 546, while in the non-metropolitan area, it decreased by 1,236.
However, the number of unsold units classified as problematic unsold dwellings has also increased, particularly in rural areas. The number of unsold units after completion rose to 18,644, representing a 1.8% increase from the previous month, with a decrease of one unit in the metropolitan area and an increase of 338 units in the non-metropolitan area. This number of unsold units after completion is the highest figure since July 2020 (18,560 units).
Housing permits in November totaled 28,344 units, down 0.6% from the same month last year (28,519 units). From January to November, the cumulative number also decreased to 273,121 units, a drop of 17.6% compared to the same period last year (331,263 units). However, the Ministry of Land, Infrastructure and Transport noted that if the total housing permits this year include ongoing final administrative procedures for public housing (over 130,000 units), the performance will improve compared to last year's 429,000 units.
Housing construction starts in November were 21,717 units, a decrease of 37.5% from the same month last year (34,738 units). However, the cumulative number from January to November increased to 239,894 units, representing a 21.4% increase compared to the same period last year (197,611 units).
The number of sales reaches 29,353 units in November, showing an increase of 37.2% from the same month last year (21,392 units). So far this year, the cumulative figure as of November stands at 211,726 units, which is a 29.5% rise compared to the same period last year (163,509 units).
The completion of housing also increased in November, with 42,381 units completed, up 10.4% from the same month last year (38,374 units), and the cumulative total from January to November reached 403,908 units, marking a 4.9% increase compared to the same period last year (384,891 units).