The number of commercial and office building transactions in Seoul hit an all-time low in January.
Realty Planet, a big data-based commercial real estate company, on Wednesday released its analysis of transaction price data from the Ministry of Land, Infrastructure and Transport. The study found that January saw 48 transactions for commercial and office buildings, down 48.9% from 94 in December last year and the lowest since 2006, when the ministry started releasing such figures.
By region, the districts of Jung and Jongno in the capital's central business district (CBD) saw their number of transactions plummet 68.4% from 38 to 12 over the period. Those of Gangnam and Seocho-gu, both of which comprise the Gangam business district (GBD), had four, down 75%, and those of Yeongdeungpo and Mapo, collectively known as the Yeouido business district (YBD), posted two, down 60%.
The combined transaction amount of 480.2 billion won ($364 million) was 63% lower than 1.2 trillion won in December last year. The CBD accounted for 332.9 billion won, down 55.2% from 742.3 billion won, GBD 44.6 billion won, down 87.5%, and YBD 3.2 billion won, down 93.6%.
The decline stood out far more when compared to last year's trading volume. January last year saw 196 transactions of commercial and office buildings worth 2.5 trillion won.
The YBD saw the biggest drops with volume nosediving 90.5% and amount 97.4%, while the GBD suffered a fall of 88.6% in volume and 96.3% in value. The CBD was the only one of the three regions to see growth, with transaction amount jumping 91.8% in January year on year thanks to the sale of Seoullo Tower for 308 billion won.
In addition, six of Seoul's 25 districts -- Jungnang, Dobong, Mapo, Yangcheon, Gangseo and Gangdong-gu – had no such transactions.
Write to Eun-Ji Shim at
summit@hankyung.com
