314,000 Households for Sale This Year... Where Are the 'Mammoth Complexes' with Over 3,000 Units?

[Asia Economy Reporter Yuri Kim] This year, approximately 314,000 households nationwide are expected to go on sale. There are also plans to launch 12 mammoth complexes with more than 3,000 households each.

According to Zigbang on the 6th, a total of 314,328 households are planned for sale nationwide this year. Of these, 198,503 households are preparing for sale in the metropolitan area, with Gyeonggi-do planning the largest supply at 95,414 households. In the provinces, 115,825 households are planned for sale, with Daegu expected to have the highest supply at 23,844 households.

Among the 299 complexes scheduled for sale in 2020, 12 complexes are planned to be mammoth complexes with more than 3,000 households. Four complexes each are planned in Seoul and Gyeonggi-do, and two complexes each in Incheon and Busan. The proportion of redevelopment and reconstruction complexes in the metropolitan area is high.

Due to policy changes and other factors, many of the 2019 planned sales were postponed to 2020. The Gwacheon Knowledge Information Town sales complexes, which were scheduled for the first sale in 2019, all had their sales schedules changed to after 2020. The schedules of mammoth reconstruction complexes such as Dunchon Jugong Reconstruction in Gangdong-gu and Gaepo Jugong 1-danji Reconstruction in Gangnam-gu, which attracted high interest from applicants, were also postponed to 2020.

Among the complexes sold in the provinces in 2019, Daegu, Daejeon, and Gwangju showed the highest average subscription competition rates. In 2020, 23,844 households in Daegu, 11,520 households in Daejeon, and 5,207 households in Gwangju are scheduled for sale. Compared to last year, Daegu and Gwangju have 3,297 and 9,037 fewer households planned, respectively, so the subscription fever is expected to continue this year. Daejeon is expected to supply 2,862 more households.

In 2020, the subscription fever is expected to be particularly intense for redevelopment and reconstruction apartments in the metropolitan area that fall under the private land price ceiling system. On December 16 last year, the Ministry of Land, Infrastructure and Transport announced measures to stabilize the housing market. The government designated 13 districts in Seoul (including Gangnam, Seocho, Songpa), 3 cities in Gyeonggi-do (Gwacheon, Hanam, Gwangmyeong) with 13 neighborhoods, and 27 neighborhoods in 5 Seoul districts with redevelopment issues as additional areas subject to the private land price ceiling system. Reconstruction and redevelopment complexes in these areas that have received or applied for management disposition plan approval must apply for resident recruitment announcements by April 2020 to be exempt from the price ceiling system.

In 2020, 51 complexes with 72,502 households will be sold in areas subject to the private land price ceiling system. Of these, 11 complexes with 26,048 households are scheduled for sale by April 2020. After May 2020, 11 complexes with 16,837 households are planned for sale, indicating that sales volumes are scheduled even after the price ceiling system is applied. Ham Young-jin, head of Zigbang Big Data Lab, predicted, "36% of the total planned sales volume is scheduled before April, and the remaining 64% is expected to be planned for after April or with an undecided schedule, so a sharp decrease in supply after the implementation of the price ceiling system is unlikely."

In 2020, subscription demanders are expected to show two movements: those who move to apply before April to avoid the price ceiling system and those who wait to apply after the price ceiling system in hopes of lower prices. However, active subscriptions are expected in popular areas such as Gaepo Jugong 1-danji Reconstruction and Dunchon Jugong Reconstruction.

Compared to 2019, when redevelopment and reconstruction apartments accounted for 37% of sales, in 2020 they are expected to account for 55%, indicating an increase in sales of redevelopment and reconstruction apartments.

This content was produced with the assistance of AI translation services.