Gyeonggi Province Real Estate Transactions Rise 18% in January-May, Led by Officetels

[Suwon Ilbo=Reporter Park No-hun] Real estate transactions in Gyeonggi Province from January to May this year showed an 18% increase compared to the same period last year, as a sharp rise in officetel transactions offset a decline in apartment transactions.

The realization rate, which represents the ratio of official prices to actual transaction prices, for both apartments and land traded in May was analyzed to be lower than the government's expectations.

Gyeonggi Province surveyed the status of real estate transactions (purchases and sales) in May and the trends in realization rates of official prices compared to actual transaction prices, releasing the results on the 11th.

□ Real Estate Transaction Trends from January to May

A total of 205,728 real estate transactions (40,216 in May) were recorded from January to May this year, representing an 18% increase compared to 173,529 transactions in the same period last year. Of the 205,728 real estate transactions, apartments accounted for 104,206 cases (50.6%), land accounted for 84,701 cases (41%), and individual houses and officetels comprised 8.4%.

Looking at real estate transaction trends by sector, apartment transactions declined 17% year-over-year, while individual houses (26%), land (31%), and officetels (133%) all increased. Notably, officetel transactions among non-residential real estate showed a sharp increase.

The top cities and counties for real estate transactions were: Suwon for apartments with 10,530 cases, Yangpyeong for individual houses with 688 cases, Hwaseong for land with 13,750 cases, and Seongnam for officetels with 1,282 cases.

Looking at the highest transaction prices for real estate acquired and reported in May, the apartment with the highest actual transaction price was located in ○○-dong, Bundang-gu, Seongnam (182.2㎡), with a sale price of 2.588 billion won and an official price of 1.82 billion won, yielding a realization rate of 71%.

For individual houses, a standalone house (312.2㎡) located in ○○-dong, Bundang-gu, Seongnam had a sale price of 4.95 billion won and an official price of 3.03 billion won, showing a realization rate of 61%.

For land, a field (田) (2,443㎡) located in ○○-dong, Hanam had a sale price of 196.79 billion won and an official price of 112.1 billion won, yielding a realization rate of 57%.

For non-residential real estate (officetels), an officetel (200.51㎡) located in ○○-dong, Seongnam had a sale price of 2 billion won and a standard market value of 640 million won, showing a realization rate of 32%.

□ Sectoral Realization Rate Trends for Real Estate Transactions in May

In November last year, the government announced a plan for real estate official price realization, stating that ▲apartments would increase from a 2020 realization rate of 69.0% to 90% over 10 years ▲individual houses would increase from a 2020 realization rate of 53.6% to 90% over 15 years ▲land would increase from a 2020 realization rate of 65.5% to 90% at an annual rate of 3 percentage points over 8 years.

An analysis of the realization rate for 20,304 apartments in Gyeonggi Province reported and paid in May showed an overall average of 58%, with properties under 300 million won at 57% and properties of 1.5 billion won or more at 73%. The average realization rate in major cities such as Suwon, Goyang, Yongin, Seongnam, and Hwaseong was 55-61%, similar to the overall average, but falls short of the government's expected realization rate due to continuous real estate price increases.

Conversely, an analysis of the realization rate for 1,916 individual houses showed an overall average of 55%, with properties under 300 million won at 54% and properties of 900 million won or more at 62%. The average realization rate in major cities such as Suwon, Goyang, Yongin, Seongnam, and Hwaseong was 55-61%, which was found to be similar to the government's expected realization rate.

The realization rate for 6,562 land parcels showed an overall average of 48%, with some variation by region. The average realization rate in major cities such as Suwon, Goyang, Yongin, Seongnam, and Hwaseong was 48-54%.

The realization rate for 3,448 non-residential properties showed an overall average of 59%, with offices (officetels and others) at 57%.

The Province plans to monitor real estate transaction trends in the region and provide them to residents, and will also disclose changing trends in the realization rate of real estate official prices compared to actual transaction prices.