In July, the volume of commercial building transactions nationwide decreased compared to the previous month, but the total transaction value saw a slight increase. The rise in transactions of mid-sized buildings valued between 10 billion and 30 billion won contributed to the overall increase in transaction value.
According to a big data report released by Real Estate Planet on September 2, the total number of commercial building transactions in July was 1,025, a 3.4% decrease from 1,061 in June. This marks the second-lowest monthly transaction volume of the year, following February's 913 transactions, and represents a decline for four consecutive months.
In contrast, the total transaction value rose to 4.545 trillion won, up 0.5% from 4.432 trillion won in the previous month. However, compared to the same period last year, transaction volume decreased by 13.1% and transaction value fell by 3.7%.
By price range, transactions of buildings valued between 10 billion and 30 billion won increased significantly, with 44 transactions, a 76.0% rise from the previous month. Conversely, transactions exceeding 30 billion won dropped to 12, a 40.0% decrease. Transactions of buildings valued over 5 billion won were concentrated in Seoul.
In terms of district-level transactions, Jung-gu in Seoul recorded the highest volume with 40 transactions. In terms of transaction value, Gangnam-gu in Seoul led with 6.547 trillion won. The highest transaction in July was the sale of the 'Gangnam 358 Tower' in Yeoksam-dong, Gangnam-gu, which sold for 445 billion won.
Despite high interest rates and economic slowdown limiting recovery in transactions, there is a selective buying trend for mid-sized buildings with strong location and asset competitiveness.
Jung Soo-min, CEO of Real Estate Planet, stated, “In July, while the volume of commercial building transactions nationwide decreased for four consecutive months, the transaction value increased for the second month in a row, showing different trends by transaction size. The significant increase in transactions between 10 billion and 30 billion won, along with the concentration of transactions over 5 billion won in Seoul, indicates that major assets such as offices and large supermarkets in key business districts continue to transact selectively based on location and asset characteristics.”
* This article has been translated by AI.
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