Private unsold homes continue to pile up across the country. In particular, in Seoul and other metropolitan areas, malicious unsold sales increased by 23% from the previous month. Although the government has greatly eased real estate regulations, houses with high sales prices are being ignored as buying sentiment has declined during the period of falling house prices.
According to the ‘Housing Statistics for June’ released by the Ministry of Land, Infrastructure and Transport on the 31st, the number of unsold units classified as malicious after completion was 9399 as of June, up 5.7% (507 units) from the previous month (8892 units). In the metropolitan area (1992 units), which increased by 23.3% from the previous month, Incheon 46.5%, Seoul 31.9%, and Gyeonggi 5.6%, showing a large increase compared to the previous month.
In the case of Incheon, ‘The First City Songdo’ in Yeonsu-gu is a representative case of unsold sales after completion. Recently, the construction company of this apartment set the condition of paying 100 million won in cash at the time of the contract when it was unable to clear the unsold stock even after repeated subscriptions without priority.
In Seoul, Daewon’s Kangbuk ‘Kantaville Suyu Palace’, which went on sale for the first time in February of last year, has yet to sell about half of its 216 households, and Hanwha E&C’s Gangbuk ‘Forena Mia’ and Shinsegae Construction’s Mapo-gu ‘Believe the Able’. Also, the unsold stock was not resolved.
In provinces, the increase was only 1.8% compared to the previous month, but the situation is more serious. After completion, 78% (7407 units) of unsold units are in the provinces. Jeonnam sold only 2 units compared to the previous month, leaving 1194 units unsold after completion. Last June, after the completion of construction in Ulsan, unsold units (193 units) increased by 45.1% compared to the previous month.
The total number of unsold apartments nationwide in June, including both pre-sale and post-sale, was 66,388, down 3.6% (2477) from last month (68,865스포츠토토). This is interpreted as an optical illusion effect created by construction companies reducing the volume by more than half compared to the previous year, fearing that the stagnant pre-sale market would last for a long time.
Based on the cumulative total from January to June this year, housing permits were 189,213 units, down 27.2% from the same period last year, and construction starts were 92,490 units, down half (50.9%). On a cumulative basis, the number of apartments sold across the country also decreased by 43% from the same period last year (116,619 units) to only 66,447 units. Permissions, construction starts, and pre-sale indicators can be said to be leading indicators of housing supply, but as they decreased by more than double digits, the possibility of new housing shortages in the next two to three years has increased.
The trend of recovery in housing transaction volume differed greatly by region. In June, the nationwide housing sales volume was only 52,592 (as of the reporting date), down 4.7% from the previous month. Transactions decreased from the previous month in all regions except for Seoul (3.2%) and Daegu (10%). In particular, Sejong ( -17.6 %), Chungbuk ( -16.7 %), Incheon ( -13.5 %), and Busan ( -10.3 %) showed a significant drop in transaction volume compared to the previous month.
In the case of Seoul, Gangnam, which increased by 4.7%, actually led the trading market in all areas of Seoul, including Gangbuk (1.6%). However, it is difficult to say that Seoul has recovered its previous year’s level of trading volume. Transactions in June decreased by 33.9% compared to the 5-year average for the same month.
However, compared to other houses such as villas, apartments had a higher transaction volume. The number of apartment transactions was 39,622, a decrease of 2.8% compared to the previous month, but an increase of 40.8% compared to the same month of the previous year. A total of 12,970 cases of houses other than apartments were down 10.1% from the previous month and 41.5% from the same month last year.
In June, the nationwide housing rental and monthly rental transaction volume (based on the reporting date) was 213,265. This decreased by 23% compared to the previous month (276,950 cases) and increased by 0.3% compared to the same month last year.