22,202 Households Move In November 2... Rent Market Expected to Face 'Cold Wind' Due to Interest Rate Hike

Move-in Volume Increases by 52% Compared to Previous Month

[Asia Economy Reporter Kim Min-young] As the year-end approaches, the supply of new apartment move-ins is expected to increase, with a total of 22,202 households scheduled for November. This is about a 52% increase compared to the previous month. However, due to the impact of interest rate hikes, the new apartment move-in market is also experiencing delayed move-ins and premium declines, leading to a continued lack of transactions and a cold market atmosphere.

According to Zigbang on the 24th, the nationwide apartment move-in supply for November is expected to total 22,022 households, about 52% more than the previous month (14,639 households). Except for November 2021, when there was a large supply of move-ins in provincial areas compared to previous years, the supply volume is expected to be at a similar level. There are two large-scale complexes with over 1,000 households (7% of the total), but ahead of the year-end, 18 mid-sized complexes with over 500 households each are scheduled to be supplied nationwide.

By region, the metropolitan area will have 13,674 households, and provincial areas will have 8,528 households moving in across a total of 28 complexes. In the metropolitan area, there will be 2 complexes in Seoul, 8 in Gyeonggi, and 4 in Incheon, with a higher supply proportion in Gyeonggi and Incheon.

In particular, a mammoth-sized complex completed through redevelopment in Seongnam is moving in, concentrating the supply volume in a specific area. In the provinces, a total of 14 complexes will move in, with 10 locations including Busan, Daegu, and Chungbuk starting move-ins.

The complexes starting move-ins this month are as follows. Hillstate Hong Eun Forest is located in Hong Eun-dong, Seodaemun-gu, Seoul, and is a reconstruction of Hong Eun 2 district. It consists of a total of 623 households with exclusive areas ranging from 59 to 84㎡. It is accessible to the downtown area via Saejeol Station on Subway Line 6.

e-Pyeonhansesang Geumbit Grand Maison is located in Geumgwang-dong, Jungwon-gu, Seongnam-si, Gyeonggi-do. It redeveloped Geumgwang 1 district and consists of a total of 5,320 households with exclusive areas from 51 to 84㎡. It is within walking distance of Dandaeogeori Station on Subway Line 8.

Nano City Station Lotte Castle is located in Banwol-dong, Hwaseong-si, Gyeonggi-do, consisting of 999 households with exclusive areas ranging from 59 to 111㎡. It is situated in Banwol 3 district, between Dongtan New Town and Suwon Yeongtong district, making it convenient to use surrounding urban infrastructure.

Bupyeong Doosan We've The Park is located in Sangok-dong, Bupyeong-gu, Incheon, redeveloping Sangok 4 district. It consists of 799 households with small to medium-sized exclusive areas from 49 to 84㎡. Sangok Station on Subway Line 7 is within a 10-minute walk.

Jurae Lotte Castle Gold Smart is located in Jurae-dong, Sasang-gu, Busan. It consists of 998 households with exclusive areas from 59 to 84㎡ and redeveloped Jurae 2 district. Jurae Station on Busan Subway Line 2 is located right in front of the complex.

Duryu Park KCC Switzen is located in Duryu-dong, Dalseo-gu, Daegu. It consists of 785 households with exclusive areas from 59 to 84㎡ and redeveloped Dalseo 7 district. Bango Station on Daegu Subway Line 2 is nearby.

Tangjeong Station Yejiji is located in Maegok-ri, Tangjeong-myeon, Asan-si, Chungcheongnam-do, consisting of 791 households with exclusive areas from 74 to 102㎡. It is within walking distance of Tangjeong Station on Subway Line 1 and is situated in Asan Tangjeong New Town, which has good transportation conditions and living infrastructure.

However, whether this supply volume will be properly absorbed by the market remains questionable. The COFIX rate, which serves as the benchmark for mortgage loan interest rates, has surpassed 3% for the first time in 10 years, and if another interest rate hike occurs, mortgage loan interest rates are expected to reach around 8% within the year.

Ham Young-jin, head of Zigbang Big Data Lab, said, "Borrowers' interest burdens are expected to increase further, and housing market transactions are expected to become quieter." He added, "The new apartment move-in market is also expected to continue a cold atmosphere for the time being due to the ongoing effects of delayed move-ins, premium declines, and transaction disappearances."

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