Property sales transactions across South Korea fell for a fourth consecutive month. Deals declined in most property categories, including apartments, with the retail and office market shrinking most sharply.
Nationwide property sales totaled 84,966 in July, down 9.8% from the previous month, according to an analysis of Ministry of Land, Infrastructure and Transport transaction data released by Real Estate Planet on the 15th. The combined value of those deals came to 37.05 trillion won ($26.6 billion), down 15.3% over the same period. Transaction volume has declined for four straight months after rebounding in March. Compared with July of last year, however, volume rose 0.6% and value climbed 16.4%.
Volume fell in eight of nine property categories, with only standalone factories and warehouses escaping the decline. Retail and office deals dropped 24.6% from the previous month, the steepest fall of any category. Land transactions fell 14.5%, factories and warehouses in multi-unit complexes 12.5%, detached and multi-household homes 9.0%, and apartments 7.0%.
Apartment sales totaled 41,850 nationwide in July, down 7.0% from June, while their combined value fell 8.8% to 22.18 trillion won ($15.9 billion). Against the same month last year, however, volume and value rose 20.4% and 35.4%, respectively. By region, apartment transactions in Seoul rose 9.0% from the previous month to 5,763, while Gyeonggi Province recorded 14,134 deals, down 14.0%.
Officetel transactions — studio units used as either homes or offices — fell 4.8% over the month to 3,348, though their combined value rose 2.7% to 947 billion won ($679 million). In Gyeonggi Province, officetel volume jumped 46.7% from the previous month and value surged 96.5%.
The retail and office market contracted the most. Transactions numbered 2,515, down 24.6% from June, while value plunged 46.4% to 1.87 trillion won ($1.34 billion). In Seoul, volume fell 29.2% and value dropped 49.0%.
"Overall transaction volume has fallen for four consecutive months and value has declined as well, but deals increased in some segments, such as Seoul apartments and Gyeonggi officetels," said Jung Soo-min, chief executive of Real Estate Planet. "Depending on lending rules and interest rate volatility, we expect the divergence by region and property type to continue."
