Apartment market prices with no actual transaction data: Check 'these 4 things' to see the value

When searching for apartment listings, people often feel flustered when they cannot find recent actual transaction prices (the prices at which actual trades occurred) for the desired size. While actual transaction prices serve as objective market indicators, it is difficult to judge the appropriate price when transactions have been interrupted. Real estate experts advise that when there are no actual transaction prices, the market value can be estimated through four criteria.

Comparing other sizes within the complex and similar nearby complexes comes first

The first method is to check the recent actual transaction prices of other sizes within the same complex as the size of interest. This is because apartments within the same complex share similar price trends. For example, if there are no transactions for an 84㎡ (approx. 34 pyeong) unit, one can estimate the price range by calculating the median value based on the transaction prices of 59㎡ (approx. 25 pyeong) or 101㎡ (approx. 40 pyeong) units.

The second is to compare complexes with similar conditions nearby. One should not use a complex as a comparison target simply because it is physically close. The presenter emphasizes that when comparing market prices, three elements—year of construction, number of households, and living area—must be considered. When comparing a 1,500-household apartment built in 2005, it could be an error to place a 300-household apartment right next to it or a newly built apartment on the same level. It is useful to find complexes that have similar years of construction and number of households and share the same subway station.

Identify the cause of the lack of transactions... must distinguish between 'lack of demand' and 'lack of supply'

The third is to check the 'asking price,' which is the price desired by the seller. While actual transaction prices are records of the past, asking prices reflect current market sentiment. However, since a gap in perception can occur where the seller feels the asking price is appropriate and the buyer feels it is high, one should be wary of listings that are absurdly high compared to recent actual transaction prices. The presenter recommended comparing at least five apartments of a similar grade.

Finally, one must analyze the reason why transactions are not occurring. The reasons for a lack of transactions are largely divided into 'lack of demand' and 'lack of supply.' The market interpretation is completely different between a case where there are few people wanting to buy and a case where there are no people wanting to sell. For example, in a large complex like Anyang Megatria, a specific small size (such as a 22-pyeong type) may have rare transactions because the number of households itself is small. In this case, if the reason for the low transaction volume is that the supply itself is low rather than a lack of demand, that specific size may actually be recognized for its scarcity in the market and be traded as soon as a listing appears. Therefore, one should not hastily judge that there is no demand based solely on transaction volume figures.

In conclusion, to judge the value of an apartment with no actual transaction prices, an accurate understanding of the market price is possible by going through four steps: ▲Checking other sizes within the complex ▲Comparing nearby complexes with similar conditions ▲Reviewing current asking price levels ▲Analyzing the cause of the lack of transactions (demand vs. supply).