The cancellation rate for apartment sales contracts in Seoul increased from 3.41% in 2021 to 7.66% last year, a rise of 4.25 percentage points. In 2022, more than one in ten reported apartment transactions in Guro, Seongdong, and Junggu were canceled.
On October 12, Rep. Hwang Hee of the Democratic Party analyzed data from the Ministry of Land, Infrastructure and Transport, revealing that from 2021 to August 2023, out of 2,659,444 reported apartment transactions nationwide, 140,202 were canceled. The cumulative cancellation rate stands at 5.27%, indicating that approximately one in twenty transactions has been canceled.
The annual cancellation rates have varied, starting at 4.72% in 2021, rising to 5.24% in 2022, dropping to 4.62% in 2023, and increasing to 5.73% in 2024. Last year, the rate was 6.71%, while this year, as of the end of August, it is at 4.21%. However, since the annual figures are not yet finalized, direct comparisons with last year are challenging.
Regionally, Sejong has the highest cumulative cancellation rate at 6.45%, followed by Jeju at 6.38% and Busan at 6.16%. Seoul's cumulative cancellation rate since 2021 is 5.02%, which is similar to the national average, but the recent increase has been relatively significant.
Last year, out of 83,776 reported apartment sales in Seoul, 6,419 were canceled, resulting in a cancellation rate of 7.66%, approximately 2.2 times higher than the 3.41% rate in 2021. Among districts, Guro recorded a cancellation rate of 10.33%, Seongdong at 10.32%, and Junggu at 10.12%, all exceeding 10%.
The Ministry of Land, Infrastructure and Transport is separately investigating the potential for price manipulation through contract cancellations. In September of last year, they announced a focused review of 425 cases where contracts were canceled after the highest price was reported in Seoul.
Rep. Hwang stated, "A comprehensive investigation and assessment are necessary to determine if there are actions to manipulate market prices through contract cancellations after high price reports. If intentional price manipulation is confirmed, appropriate measures should be taken in accordance with relevant laws."
* This article has been translated by AI.
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