126,000 Housing Units Supplied in Q3... Largest in 5 Years Based on Q3 Standards

[Asia Economy Reporter Yuri Kim] Despite several adverse factors such as regulations on the subscription market and the prolonged COVID-19 pandemic, the third quarter sales market this year created a heated atmosphere as a large volume of supply poured out.

According to Real Estate 114 on the 14th, the apartment supply volume nationwide in the third quarter (July to September) this year was recorded at 125,683 households (based on total households including rental). This is the highest level in the last five years for the third quarter. By month, 46,616 households were supplied in July, 47,385 households in August, and 31,682 households in September. The supply increase in the third quarter was driven by the concentration of delayed supply volumes in August, which is considered a seasonal off-season.

The average apartment subscription competition rate nationwide in the third quarter this year was 21 to 1, higher compared to 16 to 1 in the same period last year. By region, Busan (82 to 1), Seoul (64 to 1), and Ulsan (24 to 1) showed subscription results exceeding the national average. In Busan, three complexes?'Daeyeon Prugio Clacent' (158 to 1), 'Ray County' (121 to 1), and 'Yeonje SK View Central' (167 to 1)?recorded competition rates exceeding 100 to 1. In Seoul, 'DMC SK View I-Park Foret' recorded the highest competition rate this year at 340 to 1, and among the 15 places that received subscription applications in the third quarter, six closed with triple-digit competition rates. In Ulsan, where a recent subscription boom is occurring, 'The Sharp Beonyeong Centro' (77 to 1), 'Beonyeongro Centridge' (26 to 1), and 'Taehwagang Yubora Pallatium' (12 to 1) showed high competition rates.

In the fourth quarter, a total of 145,143 households are scheduled to be supplied, which is more than in the third quarter. The metropolitan area accounts for more than half of the total with 85,673 households. By region, the supply volume is highest in Gyeonggi with 48,745 households, followed by Incheon with 23,607 households, Seoul with 13,321 households, Chungnam with 11,949 households, and Busan with 11,083 households.

In Gyeonggi, attention is expected to focus on the supply volume in Gwacheon Knowledge Information Town. Three places?S4 Block's 'Gwacheon Prugio Eoullim Lavieno' (679 households), S5 Block's 'Gwacheon Lescento Desiang' (584 households), and S1 Block's 'Gwacheon Prugio Ortus' (435 households)?are scheduled to be supplied simultaneously in October.

The apartment supply volume scheduled in Seoul for the fourth quarter is expected to decrease by 4,409 households compared to the total 17,730 households supplied in the third quarter. This appears to be due to the adjustment of supply schedules in complexes affected by the full application of the price ceiling system. The supply of Dunchon Jugong within the year has become uncertain, and the schedule for Raemian One Bailey, planned for October, may also be adjusted. As the supply schedule of large apartment complexes is delayed, supply in Seoul in the fourth quarter is expected to be scarce.

Among the 13 places scheduled for supply in Incheon in the fourth quarter, 11 are large-scale apartments with more than 1,000 households. Among these, four complexes with more than 2,000 households are 'e-Pyeonhansesang Bupyeong Grand Hills' (5,050 households), 'The Sharp Bupyeong' (private rental, 3,578 households), 'Incheon Gyeyang 1 Redevelopment' (2,371 households), and 'Incheon Yongmaru District' (2,312 households).

In Busan, the subscription market continues to show a favorable trend after being removed from the regulated area last year. In the fourth quarter in Busan, large-scale apartment complexes from redevelopment projects such as 'Oncheon 4 District Raemian' (4,043 households), 'Jangnim 1 District Redevelopment' (1,639 households), and 'Daeyeon Beach Reconstruction' (1,374 households) are expected to continue the subscription enthusiasm.

Subscription enthusiasm is expected to continue in the metropolitan area in the fourth quarter as well. Especially, as apartment supply in Seoul becomes scarce within the year, demanders are expected to apply for subscriptions in metropolitan areas with good accessibility to Seoul. Real Estate 114 said, "Young people or newlyweds who lose out in the point-based competition might consider aiming for the special supply subscription for first-time homebuyers as one method." Subscription demand is expected to flow mainly into metropolitan cities in local areas. However, Real Estate 114 forecasts that subscription competition rates may adjust as subscription demand aiming for short-term profits decreases due to strengthened restrictions on resale of pre-sale rights in private land in the metropolitan area and metropolitan cities starting from September 22.

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