Sudden Surge in Unsold Apartments in the Capital Area... "More Apartments Are Going Dark"

Unsold apartments in the Seoul metropolitan area have increased more than threefold in six months. The photo shows a sales notice posted on an apartment complex in Seoul.
[Image source=Yonhap News]

[Asia Economy Reporter Cha Wanyong] As the real estate market downturn prolongs, unsold apartments are increasing. In particular, in the Seoul metropolitan area, where fierce tug-of-war between sellers and buyers has intensified, the number of unsold apartments has more than tripled in six months. The rise in 'post-completion unsold' apartments has also sounded the alarm in the construction and real estate industry.

According to local governments on the 28th, the number of unsold apartments in the Seoul metropolitan area (Seoul, Gyeonggi, Incheon) as of the end of July was 4,529 units. Compared to 1,325 units in January this year, when the real estate market downturn began in earnest, this is about a 3.4-fold increase.

The area with the highest unsold rate in the metropolitan area is Seoul. According to the Seoul Real Estate Information Plaza, 7 out of 10 complexes launched in Seoul this year remain unsold. The number of unsold units, which was only 47 in January, has reached 592 as of the end of July.

The situation in Incheon and Gyeonggi Province is similar. In Gyeonggi Province, 39 out of 55 complexes launched this year were undersubscribed, increasing the number of unsold units from 855 in January to 3,393 last month. In Incheon, the number rose from 423 to 544 units.

The problem is that the number of post-completion unsold apartments, classified as malignant unsold, is increasing. As of last month, the malignant unsold units in Gyeonggi Province reached 614, about twice the 390 units in January this year. Seoul also has 151 post-completion unsold apartments accumulated. Most of these apartments are recruiting occupants through non-priority subscriptions and first-come, first-served contracts, but few complexes have completed recruitment.

Given this situation, various sales marketing strategies have recently emerged in the pre-sale market to attract buyers' attention, such as interest-free loans for interim payments and free provision of paid options.

In particular, some unsold apartments are even offering discounted prices, causing conflicts with previous buyers. Additionally, ‘MGM marketing’?where sales agencies bring in contract holders through local brokers and pay commissions to the brokers?is also becoming widespread.

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