This Year’s Private Apartment Sales Achieve Only 44%... "Lowest Forecast in 10 Years"

Total Housing Sales Expected to Fall Short of 200,000 Units This Year

From January to September this year, the nationwide private apartment sales performance reached only about 44% of the annual supply target. Although two-thirds of the planned supply for the year was concentrated in the first and second quarters, the supply market contracted due to the slowdown in the real estate market in the first half of the year, resulting in poor initial sales performance and significantly falling short of the planned volume.

[Image source=Yonhap News]

On the 17th, Real Estate R114 surveyed the sales performance of private apartments (private sales and private rentals) nationwide this year and found that ▲28,908 units in the first quarter ▲34,725 units in the second quarter ▲49,470 units in the third quarter, with cumulative sales up to the third quarter totaling 113,103 units. This is about 44% of the total planned volume for the year (258,003 units, including complexes with undecided months) surveyed at the end of last year.

Although the third quarter is usually classified as an off-season for sales due to the rainy season and vacation period, this year saw the highest supply compared to the first and second quarters. As apartment prices recovered and buyer sentiment revived, complexes postponed from the first half of the year proceeded with sales, and supply was centered on redevelopment projects in the metropolitan area and land development districts in local areas, resulting in about 10,000 more units supplied than the initially planned 38,697 units for the third quarter.

By region, Jeonnam and Jeju have already supplied more than their annual planned volumes. Jeonnam exceeded its planned volume for the year with supply in the Gwangju Research and Development Special Zone Advanced 3 District in August and September, and Jeju also had high sales performance with 692 units concentrated in July and August.

On the other hand, supply in the metropolitan area reached only about 50% of the annual planned volume by the third quarter. Cities like Daegu and Ulsan, where accumulated unsold inventory risks have not been resolved, continue to experience a cooling in the sales market.

With the last quarter of the year remaining, about 80,000 private apartments are scheduled to be sold by the end of the year. Combining this with the sales performance from the first to third quarters, the total supply for 2023 is expected to fall below 200,000 units.

A representative from Real Estate R114 said, “There is a high possibility of recording the lowest volume of private apartments in 10 years since 2013’s 200,281 units. Thanks to the strong subscription trend, the final supply may be concentrated mainly in the metropolitan area within the year, but outside the metropolitan area, selective subscription by complex continues, making it difficult to supply the planned volume without disruption.”

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