July home sales skyrocket in Seoul

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July home sales skyrocket in Seoul

Residential real estate transactions in July surged to a new monthly high since July 2006.

According to the Ministry of Land, Infrastructure and Transport on Sunday, a total of 111,000 homes were sold in the month, a 43.2 percent rise from a year ago and the most since July 2006, when the government started collecting residential real estate transaction data.

One of the biggest reasons for the recovery of the nation’s real estate market is the shortage of jeonse (lump sum deposit) residences, which increased the sale of houses, and historically low interest rates.

“Home sales has been increasing as the government eased related regulations, and also was impacted by the low interest rates and lack of jeonse supply,” said Kim Kyu-jung, researcher at NH Investment & Securities. “Young people who are not able to get jeonse apartments are instead buying slightly smaller apartments.”

The government said the recovery was mainly seen in Seoul, adding that home transactions in the city increased by 101.3 percent from a year earlier.

BY KWON SANG-SOO[kwon.sangsoo@joongang.co.kr]
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