Last month, nearly half of the apartment transactions that took place were so-called "declining transactions" that occurred at prices lower than previous transactions. This is analyzed to be the result of a significant contraction in the apartment transaction market.

According to an analysis by Zigbang of transaction prices by the Ministry of Land, Infrastructure and Transport, 44.9% of apartment transactions completed nationwide in January were traded at lower prices than before. While declining transactions recorded 38.9% in July of last year, the percentage began to rise from August and surpassed rising transactions at 43.7% in November last year.

By region, the share of declining transactions in the metropolitan area reached 43.4% in December last year, surpassing that of rising transactions, and accounted for 43.6% in January this year. Although the share of rising transactions remains high in Seoul, the weakening apartment transaction prices in Gyeonggi and Incheon increased the share of declining transactions in the metropolitan area.

In Seoul, the share of declining transactions accounted for over half in Geumcheon-gu (66.7%) and Nowon-gu (55.7%). Transactions were mainly conducted in mid-sized older properties, with transaction prices lower than before.

In Gyeonggi Province, over half of the transactions in Seongnam's Sujeong-gu (61.5%), Icheon (61.1%), Ansan's Sangnok-gu (61.0%), Dongducheon (60.0%), Uiwang (55.9%), Yongin's Cheoin-gu (51.8%), Uijeongbu (50.8%), Paju (50.4%), and Goyang's Ilsandong-gu (50.0%) were declining transactions. In Incheon, the share of declining transactions exceeded half in Jung-gu (52.8%) and Namdong-gu (51.6%), while Yeonsu-gu was close at 49.3%.

In major cities outside the capital region, the share of declining transactions reached 44.8% in November 2024, surpassing the share of rising transactions (42.7%). In January 2025, the share of declining transactions was recorded at 45.6%. By region, the largest shares of declining transactions were in Daejeon (49.2%), Jeju (49.0%), Busan (47.1%), Daegu (46.3%), Chungbuk (46.3%), Chungnam (46.1%), Gyeongbuk (46.0%), Gangwon (45.9%), Gyeongnam (45.2%), Jeonbuk (45.2%), Jeonnam (44.4%), Sejong (44.3%), Gwangju (43.8%), and Ulsan (41.7%).

Zigbang noted that due to factors such as economic recession, political uncertainty, and delays in interest rate cuts, a wait-and-see attitude by buyers is expected to continue, making it difficult for the sluggish transaction market to recover quickly.