44,000 Nationwide Housing Units for Sale in November... "Polarization in the Subscription Market Will Intensify"

Next month, about 44,000 housing units are expected to be supplied nationwide in the pre-sale market. However, as the burden of prices increases due to rising pre-sale prices and market interest rates, the polarization phenomenon in the subscription market is expected to intensify.

[Image source=Yonhap News]

According to Real Estate R114 on the 30th, a total of 44,003 apartment units from 52 complexes nationwide (25,520 units in the metropolitan area, 18,483 units in provincial areas) will be offered for pre-sale in November this year.

By city and province, the metropolitan area has a large supply in the order of ▲Gyeonggi 16,627 units ▲Incheon 5,326 units ▲Seoul 3,567 units ▲Busan 3,472 units ▲Gwangju 3,214 units. In Gyeonggi, there are many units in Pyeongtaek (3,320 units), Uijeongbu (2,889 units), Paju (1,741 units), and Gimpo (1,297 units), while Incheon has many units in Seo-gu (2,548 units) and Gyeyang-gu (2,042 units).

In Seoul, the supply has decreased compared to October (5,929 units), with pre-sales planned for Hillstate e-Pyeonhansesang Munjeong (1,265 units) in Munjeong-dong, Songpa-gu; Cheonggye Riverview Xi (1,670 units) in Yongdap-dong, Seongdong-gu; Mapo Prugio Urban Peace (239 units) in Ahyeon-dong, Mapo-gu; and Dobong Kumho Eoullim River Park (299 units) in Dobong-dong, Dobong-gu.

In Busan, pre-sales are scheduled in areas such as Gangseo-gu Eco Delta City and Nam-gu Munhyeon-dong. In Gwangju, ‘Unam Xi Forena Forstiche (3,214 units)’, a reconstruction project in Unam 3 District, Unam-dong, Buk-gu, is planned to be supplied. On the other hand, there are no pre-sale plans in November for five regions including Daegu, Sejong, Gyeongnam, Jeonnam, and Jeju.

This year’s pre-sale market saw a lower entry barrier due to the expansion of the lottery system and relaxation of resale restrictions, and the concern over rising pre-sale prices caused a concentration of subscriptions, resulting in a more heated trend compared to last year.

However, as the burden of prices increases due to rising pre-sale prices and market interest rates, the selective subscription trend among subscription demand is likely to deepen. In fact, according to Real Estate R114, the proportion of general supply units priced below 600 million won as of October 23 in the second half of this year was 58.0%, down 16.2 percentage points from 74.2% in the first half. On the other hand, the proportion of units priced above 600 million won increased.

A Real Estate R114 official said, “As price sensitivity increases, it is expected that there will be a stronger tendency to shift from new buildings to existing ones or to choose complexes that have enough attractiveness to bear high pre-sale prices,” adding, “Polarization in the subscription market is expected to become more prominent, and the success of subscriptions could be a major variable affecting future supply volume changes.”

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