Three Times the Monthly Seoul Housing Supply to Be Released Over Two Months

Impact of Dunchon Jugong... Displacement of Redevelopment Projects Increasing in Various Areas
Housing Price Decline Triggers Sales Bombardment... Performance Remains Uncertain

[Asia Economy Reporter Kim Hyemin] Despite the saying that "year-end is the off-season for apartment sales," a flood of supply is pouring out in Seoul. As complexes hurried their supply schedules while watching the timing of regulatory easing, and with Dunchon Jugong joining in, nearly three times this year's performance in supply volume will be released over two months. However, due to high sale prices and rising interest rates, the subscription market is becoming more cautious, making it difficult to guarantee full sales as in the past.

According to Real Estate R114 on the 17th, the supply volume of new apartments in Seoul for November to December this year reaches 19,630 units (including rental units). This is a 160% increase compared to the 7,542 units supplied from January to October this year. Considering that last year's November to December sales were only 1,697 units, this marks a large-scale supply offensive in Seoul after a long time.

This is largely due to Olympic Park Foreon, which is reconstructing Dunchon Jugong in Gangdong-gu, confirming its sale. Dunchon Jugong, with a total of 12,032 units, will start its sales schedule beginning with special supply on the 5th of next month. Excluding units for association members, the general sale volume is 4,776 units, with a recently confirmed general sale price of 38.29 million KRW per 3.3㎡.

Having resolved the conflict over construction cost increases with the contractor, Dunchon Jugong originally planned to sell in January next year but hastened the sale within this year. This was to reduce the high-interest burden on association members caused by the tightening of real estate project financing (PF) funds as much as possible. With the steepening interest rate hikes and added concerns about an economic downturn, it seems they judged that recovering the sales proceeds quickly would be better.

With the mid-term loan limit raised from 900 million KRW to 1.2 billion KRW and partial easing of the price ceiling regulation, it seems that long-awaited redevelopment complexes or large-scale brand apartments are also confirming their sales. Jangwi Xi Radiant, redeveloped from Jangwi 4 District in Seongbuk-gu, has finalized its sale price and will sell within the year. Out of a total of 2,840 units, 1,330 units are for general sale. Centreville Asterium Signature, redeveloped from Yeokchon 1 District in Eunpyeong-gu, and Seodaemun Central I-Park, redeveloped from Hong Eun 13 District, have also started preparations for sales, including accepting special supply applications.

La Cherbo Prugio Summit, redeveloped from Haengdang 7 District in Seongdong-gu, recently completed the association members' unit lottery and is currently proceeding with sales contracts. Sillim 3 District in Gwanak-gu has completed relocation and demolition and even filed a construction start report; it will hold an extraordinary general meeting on the 29th to change the management disposition plan. Although sales have not been confirmed, there is a high possibility of sales within the year.

Although these are all long-awaited sales news for subscription applicants, the consensus is that success in sales is difficult to guarantee. Despite the application of the price ceiling system, sale prices are set higher than expected, while surrounding housing prices are falling, making it difficult to expect a safety margin. With interest rates expected to rise again next year and a large number of speculative demand leaving the subscription market, the possibility of unsold units is also raised. Kyunghee Yeo, Senior Researcher at Real Estate R114, said, "The gradual release of redevelopment supply that had not come out before can serve as a driving force to revive the recently sluggish subscription market, but a turnaround in the mood will be difficult," adding, "Within complexes, success may vary depending on sale prices and unit sizes."

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