This Year's Housing Supply Summary... 282,000 Units Supplied Nationwide, Reaching 90% of Target

Monthly Apartment Sales Performance Compared to Scheduled Sales in 2020.

[Asia Economy Reporter Choi Dong-hyun] This year, a total of 282,000 housing units were sold nationwide, reaching 90% of the initial planned supply volume.

According to Zigbang on the 28th, the planned supply volume at the beginning of this year was 314,000 units nationwide. Due to the COVID-19 pandemic and changes in real estate policies such as the application of the private land price ceiling system, the year was chaotic, resulting in an actual supply of 282,214 units, which is 90% of the planned amount.

Looking back over the year, the supply volume fluctuated significantly depending on the spread of COVID-19. During the first major wave in March and April, strict social distancing measures were implemented from March 22 to April 19, resulting in supply performance rates of 36% and 32% for March and April, respectively. The performance rate gradually increased from May through summer, but on August 30, the metropolitan area was raised to level 2.5, leading to a second wave of COVID-19 in September. Consequently, gatherings of more than 50 people were restricted, causing many apartment complexes preparing for sales to postpone their schedules. Furthermore, with the third wave starting this month and the metropolitan area again raised to level 2.5 from the 8th, many complexes preparing for sales within the year adjusted their schedules to 2021.

Despite these challenges, 282,214 units were supplied nationwide this year, with 144,290 units in the metropolitan area and 137,924 units in other regions. In the metropolitan area, Gyeonggi-do supplied the most with 93,520 units. Seoul showed only 42% of the planned supply volume due to the private land price ceiling system, which prevented some redevelopment and reconstruction projects from setting sales schedules within the year. Other regions saw significant supplies in Daegu with 30,340 units, Busan with 19,620 units, and Chungnam with 18,288 units. Some regions like Daegu and Chungnam even exceeded their initial planned supply.

At the beginning of the year, redevelopment and reconstruction apartments were expected to account for 55% of the supply, but with the application of the price ceiling system, major planned complexes such as ‘Dunchon Jugong Reconstruction’ and ‘Raemian One Bailey’ postponed their sales schedules to next year. As a result, newly supplied apartments developed and constructed by construction companies accounted for 59% of the supply, surpassing redevelopment projects.

This year, 64% of the apartments supplied were medium-small sized, with exclusive areas between 60㎡ and 85㎡. Due to COVID-19, it became difficult to open model houses for in-person viewing, leading to the rise of ‘cyber model houses’ as a non-face-to-face sales promotion method. Despite the inability to see physical model houses, many places in both the metropolitan area and major provincial cities recorded triple-digit average subscription competition rates.

The nationwide average subscription competition rate for apartments supplied this year was 27.4 to 1. By region, Seoul showed the highest rate at 77 to 1. An analysis of the top 20 complexes revealed that apartments subject to the price ceiling system in the metropolitan area had high competition rates. In particular, ‘Godeok Artes Misozium’ and ‘Seocho Xi Rene’ showed high subscription competition rates.

Meanwhile, the planned supply volume for next year is estimated at about 233,000 units. However, some construction companies have not yet set their sales schedules, so the supply volume for 2021 is expected to increase further. Notably, among the 59,539 units planned for the second half of next year, 24,400 units are pre-sale apartments for the 3rd New Town development.

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