'Unsold Housing in the Seoul Metropolitan Area Drops 37%'... Long-Term Unsold Complexes Also See 'Complete Sell-Out' Streak

Unsold Houses Decrease by 17.9% Compared to Early Year
‘Forena Mia’ in Gangbuk-gu Also Sold Out

Apartment unsold units have decreased for six consecutive months, bringing vitality to the sales market. Demand appears to be strengthening, with unsold units in the metropolitan area dropping by more than 37% compared to the beginning of the year.

On the 24th, Real Estate Info analyzed the Ministry of Land, Infrastructure and Transport's unsold housing status and found that unsold housing in August was 61,811 units, down 17.9% from January this year (75,359 units). Unsold housing has been on a monthly decline since peaking in February (75,438 units).

The decrease was particularly notable in the metropolitan area. It sharply dropped 37.3%, from 12,257 units in January to 7,676 units in August. In the provinces, the decline was 14.2% during the same period (63,102 units → 54,135 units).

Customers visiting the Hanwha Forena Mia model house in Gangbuk-gu, Seoul, receiving sales consultations. Photo by Jinhyung Kang aymsdream@

There are also reports of 'sold out' for unsold projects that were offered last year. 'Forena Mia' in Gangbuk-gu, Seoul, which was considered a representative unsold complex in the Seoul area, completed sales this month. It was offered in April last year, but the contract rate was slow to rise as the surrounding market price was about 200 million KRW higher.

In Incheon, 'Wanggil Station Kumho Eoullim Edugreen' in Seo-gu found all its owners within five months in September. 'e-Pyeonhansesang Heyri' in Paju also cleared all unsold units in about nine months.

The same goes for the provinces. Daegu, where sold-out news was rare, saw 'Beomeo Xi' in Suseong-gu complete contracts in September, and 'Manchon Jaireune' recently found all its owners. These were all offered last year and remained unsold for over a year.

The sharp reduction in unsold units is largely due to rising sale prices. According to the Housing and Urban Guarantee Corporation (HUG), as of the end of September this year, the average sale price per 3.3㎡ of Seoul apartments rose 0.65% compared to the previous month. Compared to the same month last year, it increased by 14.05%.

Supply is also significantly decreasing, increasing the scarcity of new homes. According to data from the Ministry of Land, Infrastructure and Transport and the Korea Land and Housing Corporation (LH), the supply performance based on permits from January to August this year was 213,000 units. This is 45.3% of the government's annual housing supply plan (private + public) of 470,000 units.

Also, according to Real Estate R114, the number of units offered nationwide until September this year was 126,345, which is less than half compared to the annual supply of 360,000 to 380,000 units between 2020 and 2022.

The problem is that this supply instability is unlikely to be easily resolved. To make matters worse, the recent outbreak of war in Israel, combined with the ongoing Russia-Ukraine war, has brought the already unstable international oil market into crisis again, intensifying pressure on raw material price increases. This means that apartment supply could also face setbacks due to rising sale prices.

The market shows that buyers are moving quickly in response to this supply anxiety. According to the Korea Real Estate Board, the apartment sales index in the metropolitan area, where the decrease in unsold units is significant, turned positive in June (0.10%) and continued to rise in July (0.26%), August (0.45%), and September (0.58%), with the monthly increase growing. Continued sale price hikes are likely to further increase surrounding housing prices for the time being.

Real Estate Info's Research Team Leader Kwon Il said, "Places that were considered expensive at the time of sale now seem to be perceived as reasonably priced as sale prices and housing prices have risen recently," adding, "Sale rights require only the contract deposit immediately, so the initial financial burden is relatively low, and not having to use a subscription savings account to move into a new home is also an advantage."

The contract rate for complexes currently on sale is steadily rising. 'Eunpyeong Xi The Star' (total 312 units), offered by GS Construction in Eunpyeong-gu, Seoul, has completed contracts for the 84㎡ units and is currently selling some remaining 49㎡ units.

A sales official said, "The officetels are sold out, and only some small housing units remain for sale," adding, "The benefits for contract holders amount to about 100 million KRW, and contracts are progressing smoothly, riding the improving market sentiment, so we expect to sell out soon."

Additionally, 'The Sharp Park Soleil Yu' in Gangdong-gu, constructed by POSCO Construction, is also reported to be close to selling out. It consists of 195 units and is a post-sale apartment ready for immediate move-in.

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