65% of villa sales in Seoul ‘highest in history’

Lotte World Tower Observatory, Songpa-gu, Seoul A view of the villa village in Seoul from Seoul Sky. news

As the apartment sales market in Seoul fell into a trading cliff, the transaction volume of villas (multi-family and row houses) significantly surpassed that of apartments this year as well as last year.

As a result of analyzing data from the Korea Real Estate Agency on the 4th by Real Estate Information Company Economic Manlab, 3,303 villas (multi-households, row houses) out of 5098 total housing (single, multi-family, multi-family, tenement, apartment) sales in Seoul last March It accounted for 64.8% of all housing transactions.

The proportion of villas in Seoul housing sales has exceeded 60% for four consecutive months from December last year to March this year. 64.8% in March is the highest figure since 2006 related statistics were compiled. By region, the proportion of villa sales in Gangbuk-gu (84.5%) and Gangseo-gu (83.3%) exceeded a whopping 80%. It was followed by Yangcheon-gu (79.7%), Geumcheon-gu (74.5%), Eunpyeong-gu (72.8%), Songpa-gu (72.6%), Dobong-gu (71.9%), and Gangdong-gu (71.7%).

In the metropolitan area, where apartment preference is high, apartment transaction volume was more than double that of ordinary villas until 2020. However, since the Moon Jae-in administration took office, house prices soared, and real estate regulations related to loans, sales, and taxation were added. Apartments accounted for 24.2% of all housing sales in March of this year, a record low. On the other hand, as the demand for relatively inexpensive villas has steadily increased, the number of villa sales in Seoul has surpassed that of apartments for 15 consecutive months since January last year.

In the case of Seoul, you cannot get a loan for a house with a sale price of 900 million won or more, but based on the real estate market price, the average apartment price in Seoul is 1.15 billion won and the average sale price of a villa in Seoul is 35267 million won. As it became difficult to get a loan due to the tightened total debt service ratio (DSR) regulations from last year, end-users naturally preferred villas. In addition, as private redevelopment projects such as rapid integrated planning promoted by the Seoul Metropolitan Government are booming, they are constantly receiving attention as an investment destination.

Source: 경제 by www.segye.com.

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