This year in Seoul's real estate market, apartment transactions fell while villa (row and multi-family) transactions rose. Analysts say demand shifted to the villa market as apartments were hit by relatively high home prices and tighter loan regulations.
According to real estate platform Dabang on the 16th, Seoul apartment sales transactions from January to May this year totaled 34,932, down 1.4% from the same period last year (35,419). Over the same period, apartment jeonse transactions fell 24.5%, and monthly rent transactions fell 3.9%.
By contrast, sales transactions for row and multi-family homes jumped 45.8%, from 13,215 to 19,273 over the same period. Monthly rent transactions also increased 12.8%. Jeonse transactions fell 3.0%, but the drop was smaller than the 24.5% decline for apartments.
By each of the 25 districts, apartment transactions varied widely by area. In Geumcheon District and Dobong District, apartment sales transactions each rose 95.6%, the highest growth rate. They were followed by Nowon District (85.0%), Jungnang District (78.1%), and Gangbuk District (70.7%). However, Seongdong District (-63.6%), Mapo District (-49.8%), and Gwangjin District (-43.2%) saw sharp decreases in transactions.
Row and multi-family homes saw sales increase in all 25 districts. Gwangjin District posted the highest growth rate at 95.7%, followed by Songpa District (82.4%) and Yeongdeungpo District (82.2%). Monthly rent transactions also increased in 24 districts, except for Jung District (-4.4%).
A Dabang official said, "In Seoul's real estate market, the temperature gap in transactions between apartments and row and multi-family homes is becoming clear," and noted, "As tighter loan regulations coincide with a decrease in apartment jeonse supply, demand for apartment purchases is shifting to row and multi-family homes."