In August, the volume and value of commercial and office building transactions across the country decreased compared to the previous month. Notably, transactions for buildings valued between 10 billion and 30 billion won fell by more than half, with high-value transactions concentrated in Seoul.
According to a report released on October 2 by Real Estate Planet, the number of commercial and office building transactions nationwide in August was 864, a 17.1% decrease from July's 1,042 transactions.
The total transaction value was 25.849 trillion won, down 37.3% from the previous month's 41.228 trillion won. Compared to the same month last year, transaction volume decreased by 15.1%, while transaction value increased by 5.3%.
The decline in transactions was evident across regions, with 12 out of 16 cities and provinces reporting decreases in both volume and value compared to the previous month. Ulsan saw the largest drop in transaction volume, plummeting from 28 to 5, an 82.1% decrease. Other cities, including Incheon (-48.4%), Daejeon (-41.4%), Daegu (-39.5%), and Seoul (-35.8%), also experienced declines.
In terms of transaction value, Ulsan's figures fell dramatically from 183.3 billion won to 3.1 billion won, a 98.3% drop. Daejeon (-70.3%), Daegu (-67.0%), Incheon (-62.5%), and Gyeonggi Province (-53.1%) also saw significant reductions.
Transactions for buildings valued between 10 billion and 30 billion won were particularly affected, with the number of transactions dropping from 46 in July to 22 in August, a 52.2% decrease. Transactions under 10 billion won decreased by 19.6%, those between 10 billion and 5 billion won fell by 10.3%, and those over 30 billion won dropped by 8.3%. Conversely, transactions for buildings valued between 5 billion and 10 billion won increased by 4.2%.
High-value building transactions were concentrated in Seoul. Of the 11 buildings sold for over 30 billion won nationwide in August, 10 were located in Seoul, with the remaining one in Gyeonggi Province. Similarly, of the 22 transactions for buildings valued between 10 billion and 30 billion won, 21 occurred in Seoul and one in Gyeonggi Province.
In terms of specific districts, Siheung in Gyeonggi Province recorded the highest transaction volume with 20 deals, followed by Gangnam in Seoul with 18. Gangnam also had the highest transaction value at 385.9 billion won, followed by Mapo (275 billion won), Jung-gu (210.3 billion won), and Gangdong-gu (205.6 billion won).
The highest single transaction was the sale of the 'Corner 136 Building' in Seogyo-dong, Mapo-gu, for 252 billion won. This was followed by the 'E-Mart Cheonho' in Cheonho-dong, Gangdong-gu (166.6 billion won), the 'Shinhan Bank Myeongdong Branch' in Chungmuro 2-ga, Jung-gu (128 billion won), the 'Hanareum Building' in Hwayang-dong, Gwangjin-gu (120 billion won), and the 'Cheongdamwon' in Cheongdam-dong, Gangnam-gu (110.3 billion won).
Jung Soo-min, CEO of Real Estate Planet, stated, "The nationwide commercial and office building sales market has shown stagnant trends, fluctuating around 1,000 transactions per month since hitting a low in 2023. The volatility in monthly transaction values is largely dependent on the success of mid-sized and large building transactions. With rising benchmark interest rates increasing financing burdens, uncertainty in transaction conditions is expected to persist for the time being."
* This article has been translated by AI.
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