Resale Restrictions and Sale Price Caps as Variables... "Polarization in the Autumn Subscription Market Will Widen"

[Asia Economy Reporter Yuri Kim] This fall, approximately 100,000 apartment units nationwide are scheduled for sale.

According to Real Estate 114 on the 31st, the total number of apartments planned for sale nationwide in September and October this year is 107,605 units (including rental units, based on total households). By region, 55,996 units are expected to be supplied in the metropolitan area, and 51,609 units in other provinces. This is more than 1.5 times the sales volume of 64,565 units (29,875 units in the metropolitan area, 34,690 units in other provinces) during the same period last year.

In the metropolitan area, the supply volume is highest in the order of Gyeonggi (37,547 units), Incheon (12,041 units), and Seoul (6,408 units). Real Estate 114 stated, "In Gyeonggi, where more than two-thirds of the metropolitan area supply is concentrated, the apartment sales in Hanam, Suwon, Hwaseong, and Anyang?areas that had high subscription competition rates this year?are attracting attention." Large-scale apartment complexes such as 'ePyeonhansesang Haneulchae Pyeongchon Centum First (2,886 units)' in Dongan-gu, Anyang, and 'Yeongtong I-Park Castle Mangpo 2nd Phase (2,364 units)' in Yeongtong-gu, Suwon, are scheduled for sale.

In Seoul, the supply of Dunchon Jugong in Gangdong-gu, scheduled for sale within the year, and the reconstruction apartments in Banpo-dong, Seocho-gu, which attracted subscription demand, are expected. Real Estate 114 said, "The integrated reconstruction complex of Sinbanpo 3rd and Gyeongnam Apartments, 'Raemian One Bailey (2,990 units),' and the Sinbanpo 15th reconstruction, 'Raemian One Pentas (641 units),' are scheduled for sale." In Incheon, 'Cheongcheon 2 District Redevelopment (5,050 units)' in Bupyeong-gu in September and 'Incheon Yongmaru District (2,312 units)' in Michuhol-gu in October are expected to be supplied.

In other provinces, sales will begin in Daegu (8,852 units), Busan (8,135 units), Chungnam (5,292 units), and Gwangju (5,217 units). Large-scale apartment complexes such as 'Suseong The Palace Prugio The Shop (1,299 units)' in Suseong-gu, Daegu, 'Ray County (4,470 units)' in Yeonje-gu, Busan, and 'Daeyeon Beach (1,374 units)' from the Daeyeon 4 reconstruction in Nam-gu, Busan, are scheduled for sale.

The monthly planned supply volume is about twice as many in September with 71,354 units compared to 36,251 units in October. Real Estate 114 explained that this is because more projects have adjusted their sales schedules from August to September. Among the units planned for sale in August as of the end of July, about 25,000 units were postponed to September. The schedules for Ray County (4,470 units) in Yeonje-gu, Busan; B-05 Redevelopment (2,625 units) in Jung-gu, Ulsan; Osong Station Paragon Central City (2,415 units) in Heungdeok-gu, Cheongju; and Suseong The Palace Prugio The Shop (1,299 units) in Suseong-gu, Daegu, were adjusted.

However, with the resurgence of COVID-19, there is an analysis that the September sales may not proceed as planned. The Dunchon Jugong, originally scheduled for September, was postponed to later this year due to failed negotiations on the sale price. For redevelopment projects, sales may be delayed due to price regulations or internal issues within the associations.

Yeokyung Hee, senior researcher at Real Estate 114, said, "The fall sales market is expected to continue its favorable trend as apartments supplied at prices lower than market value due to price controls drive subscription enthusiasm," but also predicted, "The subscription market atmosphere will show a temperature difference depending on location, expanding polarization."

Due to strengthened regulations on multi-homeowners and a preference for a 'smart single home,' the concentration of subscription demand in Seoul is expected to continue. However, regions such as Gyeongsang, Gangwon, and Jeju, where unsold units remain unresolved and concerns about economic recession due to prolonged COVID-19 are high, are likely to be excluded from subscription enthusiasm. He added, "In major cities such as the metropolitan area and metropolitan cities, resale is restricted until ownership transfer registration, and special crackdowns on market-disturbing activities such as resale of pre-sale rights are being strengthened, so in some areas, investment demand is expected to decrease, and enthusiasm may somewhat calm down."

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