32,000 Households Scheduled for Sale in June... Supply Schedule Delayed Amid Possibility of Supply Regulation Reform

Seoul Metropolitan Area Housing Sales Postponed Again to Second Half
32,000 Units Scheduled for Next Month

Comparison of Apartment Pre-sale Volumes by Region in June 2022 (Unit: Number of Households) / Source=Zigbang

[Asia Economy Reporter Hwang Seoyul] Among apartment redevelopment projects in the Seoul metropolitan area, those subject to the price ceiling system for pre-sale prices are postponing their sales schedules to the second half of the year or later. This is because the government announced on the 23rd that it would release a 'Revised Plan for the Price Ceiling System' within June, increasing the possibility of easing regulations on the price ceiling system.

According to Zigbang on the 30th, out of 62 complexes in June with a total of 32,952 households, 28,232 households are preparing for general sales. Among the total supply (32,952 households), 11,180 households (34%) are planned to be supplied in the metropolitan area, with 7,912 households in Gyeonggi, 2,632 households in Incheon, and 636 households in Seoul scheduled for sale. In the provinces, 21,772 households (66%) are planned for sale, with the largest supply (4,959 households) in Busan. In the same month last year, the metropolitan area (13,734 households) and provinces (11,537 households) accounted for 54% and 46%, respectively, showing a slightly higher proportion in the metropolitan area, but the supply volume in the metropolitan area is relatively low in June this year.

Source=Zigbang

In May, actual sales were made in 24 complexes, totaling 14,879 households (supply performance rate 60%), with 12,849 households for general sales (supply performance rate 57%). This is about 60% of the 42 complexes scheduled for sale in May, totaling 24,598 households, with 22,383 households for general sales, as surveyed at the end of April.

Reconstruction and redevelopment apartments that had difficulties in setting pre-sale prices due to the application of the price ceiling system in private land areas are adjusting their sales schedules to the second half of the year or later. The private land price ceiling system was applied to 322 districts in Seoul and the metropolitan area, which are leading regions for housing price increases and redevelopment issues, as part of the December 16, 2019 real estate measures.

This is because Minister of Land, Infrastructure and Transport Won Heeryong announced at his first press briefing after taking office on the 23rd that the 'Revised Plan for the Price Ceiling System' would be announced next month as his first real estate policy.

Minister Won hinted at rationalizing the calculation method by reflecting relocation costs for redevelopment projects and increases in raw material prices in the pre-sale price.

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