Local Housing Market 'Heated Up'... Highest Nationwide Initial Sales Rate Since Statistics Began

[Asia Economy Reporter Ryu Tae-min] Despite the government's stringent housing regulations, the initial sales rate of apartments nationwide is significantly increasing.

On the 25th, Yang Ji-young R&C Research Institute analyzed data on the initial sales rate trends of private apartments from the Housing and Urban Guarantee Corporation (HUG). The initial sales rate of private apartments nationwide in the second quarter of this year was recorded at 98.3%. This is the highest figure since HUG began compiling related statistics in the third quarter of 2015. It is also 3.5 percentage points higher than the first quarter of this year (94.8%) and 23.4 percentage points higher than the second quarter of 2017, when the Moon Jae-in administration began.

The nationwide increase in the initial sales rate is attributed to a significant rise in the initial sales rate in provincial areas recently. The initial sales rate of private apartments in other provinces excluding the five major metropolitan cities was 96.3% in the second quarter of this year. This is 10.7 percentage points higher than the previous quarter and a remarkable 34.4 percentage points higher than the second quarter of 2017 under the Moon Jae-in administration, marking the highest level since statistics began being compiled.

Among other provinces, Chungcheongbuk-do recorded the highest rate at 99.5%, followed by ▲Chungnam (97.7%) ▲Jeonnam (97.5%) ▲Gyeongbuk (96.8%) ▲Jeonbuk (92.9%) ▲Gangwon (90.0%).

The initial sales rate refers to the ratio of contracted households to the total number of households offered for sale at the initial stage of apartment sales. The survey targets nationwide private apartments with 30 or more households that have received approval for recruitment of residents after HUG issued housing sales guarantees.

Industry experts analyzed, "The rise in the initial sales rate in other provinces is likely due to the continued popularity of new apartments, with demand concentrated in non-regulated areas where regulations such as subscription and loans are relatively less strict compared to the metropolitan area."

With more sales announcements expected in other provinces in the second half of the year, this trend is expected to continue for the time being.

Dongyang Construction Industry plans to sell 'Osong Station Paragon Central City Phase 2' in B-3 block of Osong Bio-Polis, Heungdeok-gu, Cheongju-si, Chungcheongbuk-do. It consists of 14 buildings from basement level 2 to 25 floors above ground, with a total of 1,673 households of exclusive areas 68 and 84㎡ (types A and B). The commercial facilities of Paragon Square in Osong Station Paragon Central City Phase 1 will also be sold simultaneously.

In addition, Line Construction is currently selling 'Asan Techno Valley Phase 6 EG the 1' in Ab5 block of Asan Techno Valley, Chungnam. It consists of a total of 822 households with exclusive areas of 68 and 84㎡ (types A and B).

HDC Hyundai Development Company will sell 1,144 households of 'Pohang I-Park' at 360-13 Yongsan-ri, Nam-gu, Pohang-si, Gyeongsangbuk-do this month. Hanwha Construction plans to sell 1,849 households of 'Forena Cheongju Mochung' in the Mochung-dong area, Seowon-gu, Cheongju-si, Chungbuk in October.

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