Seoul 'Sale Shock'... Only 331 Units Sold in Three Months

[Asia Economy Reporter Cha Wanyong] The housing market downturn and rising construction costs are impacting new apartment sales in the Seoul area. Since the downturn began in earnest last June, the total number of new apartment units offered in Seoul has been only 331. Considering that June to October is typically the peak sales season with thousands of units offered annually, this represents an unprecedented decline in supply.

According to the Korea Housing Association on the 23rd, from June to August, when the real estate market entered a clear downward trend, only 331 units were offered in Seoul. This month, the supply volume is 'zero (0)'.

The decline in new apartment sales in Seoul began last year. While Seoul consistently supplied over 20,000 units annually?20,384 units in 2018, 23,989 units in 2019, and 24,562 units in 2020?the number dropped to 5,937 units in 2021 and has remained at 3,529 units as of this date in 2022. Industry insiders expect it will be difficult to reach even 4,000 units this year as more projects continue to postpone sales.

The decrease in new apartment sales in Seoul is largely attributed to the sharp rise in construction costs caused by increased raw material prices. Conflicts between reconstruction/redevelopment associations and construction companies over construction costs have delayed sales schedules at many sites. Additionally, associations aiming to set higher sales prices have postponed sales, further contributing to the decline.

Large-scale redevelopment complexes such as Jungnang-gu’s ‘Junghwa Lotte Castle SK View’ and Dongdaemun-gu’s ‘Imun I-Park Xi’, which are currently negotiating construction cost adjustments, have yet to finalize their sales schedules. Seocho-gu’s ‘Raemian Onepentas’ has postponed its sales schedule entirely to next year.

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