Nationwide factory and warehouse transactions in Korea showed a short-term correction in October while maintaining a recovery trend compared to earlier this year, according to new data.
R Square, a commercial real estate services firm, analyzed data from the Ministry of Land, Infrastructure and Transport and found that October transactions for factories and warehouses nationwide totaled 732.5 billion won ($537 million) across 294 deals. This represents a 35.6% decline in value and a 12.8% drop in the number of transactions from September, which recorded 1.14 trillion won across 337 deals.
There were no large-scale transactions exceeding 100 billion won during the month. A warehouse facility in Icheon, Gyeonggi Province, was the highest-value deal at 81.4 billion won.
However, the gap from the early-year low point remains improved. Compared to January figures of 523.8 billion won across 251 deals, October's transaction value was up 39.9% and the number of deals increased 17.1%. While the average monthly transaction volume in the first quarter was 715.5 billion won, the average for the most recent three months rose 34.4% to 961.8 billion won.
"From a mid-to-long-term perspective, the market has shown steady recovery since last year following the early 2023 correction period, with fluctuations around the 1 trillion won level," an R Square official said. "Although cumulative transaction value is not large due to the impact of reduced trading at the start of the year, the medium-term trend line is drawing a gentle upward curve."
The official added that "if manufacturing and logistics business conditions and the interest rate environment stabilize, the mid-term recovery trend will become more apparent."
