'New Home Drought'... Only 4,100 Households Moving In Seoul Next Month

[Asia Economy Reporter Yuri Kim] Next month, the nationwide apartment move-in volume is expected to fall short of 20,000 units, signaling a shortage of new move-ins. In particular, Seoul's move-in volume is limited to 4,100 units, raising concerns about supply-demand instability in the jeonse market.

According to Real Estate 114 and others on the 28th, the scheduled nationwide apartment move-in volume for May is 19,668 units, marking the lowest level in 3 years and 2 months since March 2017 (13,929 units). This is 8.47% less than this month's 21,487 units and a sharp 20% decrease compared to 24,597 units in the same month last year. Apartment move-in volumes have been declining since peaking in 2018 (458,530 units). Accordingly, the average monthly supply of apartments has also been decreasing, from 38,211 units in 2018 to 33,438 units last year, and an estimated 29,006 units this year.

In Seoul, 4,108 new apartments will welcome residents in May. These include Nokbeon Station e-Pyeonhansesang Castle Phase 1 in Eunpyeong-gu, Eungam-dong (2,451 units), Dangsan Central I-Park in Dangsan-dong 5-ga, Yeongdeungpo-gu (802 units), and e-Pyeonhansesang Seoul National University Entrance Phase 2 in Bongcheon-dong, Gwanak-gu (519 units), among others.

Nokbeon Station e-Pyeonhansesang Castle, located in the subway line 3 Nokbeon Station area, is a large complex with a total of 2,569 units, including 2,451 units in Phase 1 and 118 units in Phase 2. Phase 1, which was publicly sold in 2017, was "sold out" within two weeks of contract signing, and Phase 2 attracted popularity with an average competition rate of 75.4 to 1 in the first priority subscription. It takes about 10 minutes by subway to reach downtown areas such as Gwanghwamun. The market price for Phase 1 units of 84㎡ (exclusive area) is around 1.1 billion KRW, about 500 million KRW higher than the sale price. The jeonse price is formed around 500 million KRW. Dangsan Central I-Park is a complex rebuilt from the Sang-ah Hyundai Apartment. Dangsan Station on subway lines 2 and 9 is within a 10-minute walk. The asking price for sale is around 1.7 to 1.8 billion KRW for 84㎡ units. Considering the original sale price was in the high 800 million KRW range, this means the price has more than doubled. The jeonse price for the same area is formed around 700 to 800 million KRW.

However, the supply-demand instability caused by the decrease in move-in volume is expected to be resolved in the second half of the year. Ham Young-jin, head of the Zigbang Big Data Lab, said, "In the second half of the year, about 20% more units are planned to move in compared to the first half," adding, "In the Gyeonggi area, 60% of this year's move-in volume is concentrated in the second half, so in some oversupplied areas, monthly rent prices may adjust."

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