72% in the metropolitan area – 86% in the five metropolitan cities
“Avoiding Villas and Officetels Due to Jeonse Fraud”
It was revealed that apartments accounted for 76% of housing transactions in the first half of this year (January to June). This is the highest figure for the first half of the year since related statistics began to be compiled in 2006. This is the result of an acceleration of the concentration of apartments as the number of young people who avoid villas and officetels due to the aftermath of the jeonse scam increases.
According to the Korea Real Estate Board on the 8th, out of 317,511 housing transactions nationwide in the first half of the year, apartments accounted for 76.1% (236,374 cases). This proportion fell from 66.7% in the first half of 2021 to 59.3% in 2022, but rebounded to 74.1% last year.
By region, the proportion of apartment sales transactions in the metropolitan area was 72.3%. In the five metropolitan cities (Busan, Daegu, Gwangju, Daejeon, and Ulsan), it reached 85.7%. In both regions, the proportion of apartments is the highest ever in the first half of the year.
As the phenomenon of avoiding villas due to jeonse fraud intensifies, apartment prices are rising sharply. According to real estate sources, apartment sales prices in Seoul in the first week of August rose 0.07% compared to the previous week, continuing the upward trend for 20 consecutive weeks. Apartment prices in the metropolitan area also rose for 12 consecutive weeks.
“As fears of jeonse fraud drive buyers to flock to apartments, demand is rising again as apartment prices rise,” said Koh Jun-seok, a professor at Yonsei University’s Sangnam School of Management. “If the U.S. cuts its benchmark interest rate within the year, apartment prices could rise further.”
Reporter Jeong Seo-young [email protected]