Over the past five years, the number of apartment transactions canceled nationwide has topped 110,000. With the possibility being raised that some were fake contracts aimed at "pushing up record-high asking prices," concerns are growing about market disorder.
According to data the Ministry of Land, Infrastructure and Transport submitted to Rep. Kim Jeong-jae of the People Power Party on the 24th, more than 110,000 apartment transactions were canceled nationwide from 2021 through Aug. 2025.
By year, the number of contract cancellations was 28,432 in 2021, 14,277 in 2022, 18,283 in 2023, and 26,438 in 2024. This year, cancellations reached 23,452 through August, and the total is expected to hit an all-time high.
Apartment transaction cancellations were pronounced in the Seoul metropolitan area. Gyeonggi Province saw the most transaction cancellations over the entire period, with a total of 27,881 from 2021 through Aug. 2025. Seoul recorded 11,057, and Incheon had 6,757 cancellations.
Transaction cancellations continued in non-capital regions as well. South Gyeongsang Province recorded 8,624 cancellations, followed by Busan (8,250), South Chungcheong Province (6,259), and North Gyeongsang Province (5,718).
There are claims that these cancellations may involve fake contracts intended to inflate home prices. The allegation is that sellers and buyers collude to falsely report a sale at a high price as if a transaction occurred, push up surrounding apartment prices, and then cancel the contract—so-called "pushing up record-high asking prices."
When phony transactions lead to record-high price reports amid weak real buying demand, the complex's price level is inflated, which in turn affects price increases of nearby apartments.
This goes beyond simple cancellations between individuals and can harm genuine end users. Falsely reported transactions at high prices become a reference point for surrounding prices, creating an illusion that induces end users to buy listings at higher prices.
Rep. Kim Jeong-jae said, "As the number of transaction cancellations continues to rise, there is a need for stronger government-level market oversight and penalties," adding, "It is an urgent time to implement institutional improvements to restore trust in the real estate market and prevent end users from being harmed."