The national average of the number of housing transactions hit a record high during the first half of this year. However, those numbers are not reflecting the market in Jeju.
The local real estate market has been sluggish and the situation is further aggravated as buyers are waiting to see if prices drop even more.
Meanwhile, the volume of leases has soared.
Mike Laidman reports.

According to the Ministry of Land, Infrastructure and Transport, 620,000 houses changed hands nationwide during the first half of this year - the largest number of such transactions over that time period ever.
But, in Jeju, there were only 4,691 residences that saw such a swap - the lowest number among all of Korea.

Compared to the first 6 months of 2019, the rate of increase in Jeju was still 26 percent, but that’s only good enough for last place in the nation.
Comparing with the average number of the last 5-year transactions paints a different picture entirely, with the increase rate actually turns to negative 11.7 percent, making Jeju the only area to have dipped into the red.



Property owners are putting their houses up for sale to offload them before the upcoming tighter regulations on the real estate market are implemented. At the same time, demand for houses is rising too, as housing prices are presumed to increase further. These factors are both contributing to the higher number of bought and sold houses nationwide.


But again in Jeju, the prolonged recession in the real estate market is opposite the overall national trend in transaction volume.

Leases have become popular because the Korean government’s control over mortgage loans is becoming tighter and those looking to buy are instead adopting a wait-and-see attitude.

The number of contracts for leases soared 23.5 percent during the first half of this year compared to 2019, good enough for first place in that specific area of growth nationwide.



Looking ahead, experts predict that Jeju’s lead in rentals in the local real estate market would last for the time being if there are not factors like new development plans and the influx of the population.

Mike Laidman, KCTV