11% Decrease in Apartment Supply in the Seoul Metropolitan Area Amid Real Estate Market Slump

For the First Time in 4 Years Since 2018, New Apartment Supply Fails to Exceed 100,000 Units
"Supply Decrease May Increase Scarcity of New Apartments," Experts Say

[Asia Economy Reporter Cha Wanyong] Amid steep interest rate hikes and recession concerns, this year's real estate market has faced an unprecedented cold wave, causing the sales market to freeze. In particular, the supply of general sales in the Seoul metropolitan area has decreased by more than 11% compared to last year.

On the 20th, Real Estate Info analyzed data from Real Estate R114 and found that the total general sales volume in the Seoul metropolitan area, including Seoul, Gyeonggi, and Incheon, was 99,503 households this year, down 11.3% (12,645 households) from 112,148 households last year. This is the first time in four years since 2018, when it was 78,129 households, that the number did not exceed 100,000 households.

By region, the supply volume in Gyeonggi and Incheon decreased significantly. Gyeonggi Province dropped from 79,075 households last year to 70,354 households this year, a decrease of 11% (8,721 households). Incheon fell from 30,142 households to 19,511 households, a 35.3% (10,631 households) decrease.

By quarter, the numbers gradually declined with 26,135 households in Q1, 20,348 households in Q2, and 15,382 households in Q3. In Q4, 37,638 households will be supplied, the highest volume within the year, but more than half are concentrated in December. There is also a possibility that the complexes scheduled for sale this month will be postponed to next year, which could further increase the decline after the year-end.

The industry expects the supply reduction to continue for some time. Due to the impact of inflation and interest rate hikes, the real estate market has entered an adjustment phase, which has dampened the sentiment of both developers and buyers. On the other hand, some opinions suggest that the scarcity of new apartments will gradually increase due to the reduced supply.

In fact, after the real estate market stagnated since 2008, construction companies significantly downsized their housing projects. This downsizing led to a decrease in sales and caused the price increase to be larger when the real estate market recovered. This was due to the time lag in housing supply.

A real estate expert said, "After intensive supply over the past 2-3 years, new sales have noticeably decreased, and if this downward trend continues, a shortage of new apartments may occur."

Meanwhile, new apartment supplies continue in the metropolitan area this month, attracting attention. First, starting today (the 20th), GS Construction's 'Gangdong Heritage Xi' in Gangdong-gu, Seoul, and Hyundai Construction's 'Hillstate Incheon City Hall Station' in Namdong-gu, Incheon, will begin sales respectively.

Gangdong Heritage Xi will offer 219 units of 59㎡ out of a total of 1,299 households for general sale, and Hillstate Incheon City Hall Station will offer 485 units ranging from 59 to 84㎡ out of a total of 746 households for general sale.

In Anyang, Gyeonggi Province, a large-scale complex called 'Pyeongchon Centum First' with 2,886 households is scheduled for sale within the year. This apartment, supplied through the redevelopment new construction project of Anyang Deokhyeon District by DL E&C and Kolon Global, has 1,228 general sale units (36 to 84㎡).

Additionally, in Paju Unjeong 3 District, Hoban Industry is selling 'Hoban Summit West Park (518 households)' and 'Hoban Summit East Park (1,110 households),' and in Hwaseong Dongtan 2 New Town, the Taeyoung Dongtan Consortium is selling 'Dongtan Eoullim Familier (640 households)' and 'Dongtan Summa Desiang (616 households)' respectively.

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