The total transaction value of Seoul row houses and multi-unit homes in the second quarter of this year approached 5 trillion won ($3.53 billion), the highest since the second quarter of 2021, as tightening apartment regulations appear to have pushed demand toward lower-rise residential properties.
AI-based real estate firm Budongsan Planet analyzed Ministry of Land, Infrastructure and Transport actual transaction price data and found that Seoul row house and multi-unit home sales in the second quarter reached 11,536 transactions, with a combined value of 4.93 trillion won.
The transaction count was the highest since the third quarter of 2021, when 13,652 deals were recorded, while the transaction value was the highest since the second quarter of 2021, when it stood at 5.19 trillion won.
While purchase transactions rose, lease activity declined. Jeonse and monthly rent transactions for row houses and multi-unit homes totaled 33,806 in the second quarter, down 13.7% quarter-on-quarter. Monthly rent accounted for 61.4% of all lease transactions. Monthly rent volume fell quarter-on-quarter across all 25 of Seoul's autonomous districts, with Eunpyeong-gu posting the smallest decline at 1.5% and Nowon-gu the largest at 39.2%.
The average jeonse deposit per 3.3 square meters of exclusive use area was 21.5 million won, up 1.8% from the previous quarter and 4.4% from the same period last year. As of June, the jeonse-to-price ratio — the proportion of the sale price represented by the jeonse deposit — averaged 60.8%.
Among individual districts, the jeonse-to-price ratio was highest in Gangbuk-gu at 79.2%, followed by Gangseo-gu at 72.7%, Geumcheon-gu at 72.6%, Guro-gu at 70.9% and Dobong-gu at 69.5%. The average jeonse-to-monthly-rent conversion rate was 5.5%, with Seodaemun-gu the highest at 6.7%, followed by Nowon-gu at 6.4% and Mapo-gu at 6.3%.
"Looking at the second-quarter villa sales market on a monthly basis, transaction volume was up from the previous quarter overall, but deal activity contracted after April, and jeonse and monthly rent transactions also fell quarter-on-quarter," Budongsan Planet said. "Average lease deposits and the jeonse-to-price ratio both rose, meaning tenants face a heavier financial burden even as transaction volumes decline."
lucky@heraldcorp.com
