Nationwide commercial and office building transaction volume and value decrease... Financing uncertainty persists

Amid continued stagnant trends in the nationwide commercial and office building transaction market, August sales volume and transaction amount decreased compared to the previous month.

According to Real Estate Planet, a real estate company, on the 2nd, the nationwide commercial and office building transaction volume in August was 864, down 17.1% from the previous month (1,042).

The sales amount was 2.5849 trillion won, down 37.3% from the previous month (4.1228 trillion won).

Compared to the same period last year, trading volume decreased by 15.1%. However, the transaction amount increased by 5.3%.

Among the 16 cities and provinces across the country, Ulsan (5 cases) had the largest decrease at 82.1%.

This was followed by Incheon (32 cases, -48.4%), Daejeon (17 cases, -41.4%), Daegu (23 cases, -39.5%), and Seoul (149 cases, -35.8%).

Including this, the transaction volume of a total of 12 cities and provinces decreased.

Places where transaction volume increased were Gangwon (45 cases, 50.0%), Gyeonggi (225 cases, 6.1%), and Sejong (0 → 2 cases).

In Jeju, 14 transactions were completed, the same as the previous month.

By transaction amount, transactions worth more than 10 billion won and less than 30 billion won (22 cases) showed the largest decline, down 52.2% from the previous month.

Next, those under 1 billion won (503 cases) fell by 19.6%, those between 1 billion won and less than 5 billion won (278 cases) fell by 10.3%, and those over 30 billion won (11 cases) fell by 8.3%.

The only transaction amount that increased was between KRW 5 billion and less than KRW 10 billion (50 cases, 4.2%).

Transaction volume by city, county, and district was highest in Siheung-si, Gyeonggi-do (20 cases), Gangnam-gu, Seoul (18 cases), Namyangju-si, Gyeonggi-do, Manse-gu, Hwaseong-si, and Gyeongju-si, Gyeongbuk (16 cases each), Yongsan-gu, Seoul, and Gimpo-si, Gyeonggi Province (15 cases each), and Jongno-gu, Seoul and Paju-si, Gyeonggi Province (14 each).

The highest transaction was for the ‘Corner 136 Building’ in Mapo-gu, Seoul, with a contract worth 252 billion won.

Jeong Soo-min, CEO of Real Estate Planet, said, “The national commercial building sales market has been stagnant, with monthly transaction volume fluctuating at around 1,000 since the bottom in 2023,” and predicted, “As the burden of financing increases due to successive increases in base interest rates, uncertainty in transaction conditions will continue for the time being.”