Seoul building transaction value plunges 57.5% in a year; number of deals also falls

[Financial News] The value of commercial building transactions in Seoul this September was 1.0249 trillion won, down 57.5% from 2.4088 trillion won in the same period last year. The number of deals fell 23.1% over the same period to 143.
According to BSN (Bilsanam), a commercial real estate market research firm, on the 6th, Seoul building transactions this September declined from the same period last year in value, number of deals and average transaction value. The average transaction value fell 44.7% in a year to 7.17 billion won, while the median price per 3.3 square meters also dropped 7.7%.
Jongno District had the most deals, with 19. Jung District followed with 12, Gangnam District with 10, and Gwangjin District and Mapo District with nine each.
By transaction size, deals were concentrated in small- and medium-sized buildings. There were 72 transactions involving buildings priced at 1 billion won to under 5 billion won, about half of all deals. By transaction value, large buildings priced at 10 billion won or more accounted for 63% of the total. This means that transactions involving large buildings drive the market’s overall transaction value.
Corporations accounted for 71% of buyers, while individuals made up 29%. Kim Yun-su, head of BSN (Bilsanam), said, “In Jongno District, demand for real estate investment aimed at operating accommodation facilities and hostels is growing alongside the increase in foreign tourists.” He explained, “The heightened interest in buildings that can be converted into accommodation facilities, particularly in areas that attract many tourists, may have had some impact on transactions in Jongno District.”
[email protected] Kwon Jun-ho Reporter