Seoul Housing Supply Cut by One-Third with Scarce Move-in Volume

Impact of Government Reconstruction Regulations
Large Complex Sales Delayed to Next Year
Permits Increased but Move-ins Down 20%

[Image source=Yonhap News]

[Asia Economy Reporters Kangwook Cho and Mowon Moon] The supply volume of Seoul apartment units scheduled for sale this year is expected to shrink to about one-third of the early-year forecast as sales have been postponed one after another. This is due to the government's reconstruction regulations and controversies over the price ceiling system, which have delayed the sales of large-scale reconstruction complexes to next year.

According to data from Real Estate R114 REPS and KTB Investment & Securities on the 2nd, the number of apartment units sold or scheduled for sale in Seoul this year is estimated at 15,933 units, the lowest since 15,843 units in 2006.

This is only about one-third of the forecast announced by the government at the beginning of the year. The Ministry of Land, Infrastructure and Transport had announced in its early-year forecast that about 48,000 to 50,000 new apartments would be sold in Seoul this year. Considering 4,000 units from public sales and pre-sale reservations, more than 40,000 private sales have been disrupted.

In fact, major reconstruction and redevelopment complexes in Seoul have postponed their sales. Representative examples include Dunchon Jugong in Dunchon-dong, Gangdong-gu, with 12,000 units, Samik in Cheongdam-dong, Gangnam-gu, Imun 1 District in Dongdaemun-gu, and Jamsil Jinju in Sincheon-dong, Songpa-gu.

While new supply has been disrupted, the move-in volume is also not ample. According to housing construction statistics announced by the Ministry of Land, Infrastructure and Transport on the same day, the number of move-ins in Seoul from January to September this year was 51,920 units, down 20.7% compared to the same period last year. The number of housing starts also decreased by 26.7% to 39,373 units compared to the same period last year. However, permits issued increased by 62.2% to 62,516 units compared to the same period last year.

Lee Eun-hyung, senior researcher at the Korea Institute of Construction Policy, said, "It is impossible for a large number of move-in-ready physical houses to be supplied in a short period," and added, "It is predicted that the upward trend in housing prices will be difficult to break next year as well."

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