Apartment Sales That Had 'Stalled' See a 'Push-Out' in June and July Ahead of Stronger Regulations

71 Complexes in June, Total 66,364 Households, 44,990 Households for General Sale
"Stronger Resale Restrictions, Pre-Sale Rush Expected Before Implementation of Price Ceiling System"

[Asia Economy Reporter Lim Onyu] As the implementation of high-intensity real estate regulations, including strengthened resale restrictions in the metropolitan area, approaches, it is expected that apartment sales, which had slowed due to the impact of the novel coronavirus disease (COVID-19), will proceed in large numbers in June and July.

According to Zigbang on the 1st, the number of apartment complexes scheduled for sale last month, surveyed in April, was 88 complexes with a total of 63,560 households, of which 50,672 were general sales. Among these, actual sales took place in 48 complexes, totaling 33,444 households, with 26,881 for general sales. Thus, the supply performance rate for last month was calculated at 53%.

This is a higher figure compared to March and April. Due to COVID-19, sales planned for early in the year were postponed, resulting in supply performance rates of 32% and 28% in March and April, respectively.

Zigbang expects the sales execution rate to increase further for the time being as the implementation of high-intensity real estate regulations, such as strengthened resale restrictions in the metropolitan area and the private land price ceiling system, approaches. Previously, the Ministry of Land, Infrastructure and Transport announced that from August, the resale restriction period for apartments supplied in most metropolitan areas and local metropolitan cities' private land will be extended from the existing 6 months to until the ownership transfer registration. Additionally, the price ceiling system will be implemented from July 29.

Ham Young-jin, head of Zigbang Big Data Lab, said, "Construction companies that postponed sales due to the impact of the COVID-19 virus at the beginning of the year will push to release sales volumes before August to avoid the extension of resale restrictions."

In fact, this month, 71 complexes with a total of 66,364 households, including 44,990 for general sales, are preparing for sale. Compared to the same period last year, the total number of households has increased by 162%, and general sales by 160%.

Among the 66,364 households, 36,388 will be sold in the metropolitan area. Gyeonggi-do plans the largest supply with 18,416 households. In local areas, 29,976 households are scheduled for sale, with Daegu Metropolitan City expected to have the largest supply at 6,279 households.

In Seoul, 9 complexes with 12,312 households will be sold. Sales are concentrated in redevelopment apartments such as Raemian Elinity (Yongdu 6 District) in Dongdaemun-gu and The H Firstier I-Park (Gaepo 1-dong Jugong Reconstruction) in Gangnam-gu. Two public sale apartments will be supplied in the Godeok Gangil district of Gangdong-gu. Since the 27th of last month, all public sale apartments sold in the metropolitan area have a mandatory residence period ranging from 3 to a maximum of 5 years, depending on the sale price compared to market prices.

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