Cold Sentiment in the Housing Subscription Market Continues into the New Year... "It May Take Up to 6 Months to Sell Out"

High-Priced Apartment Complexes in Gwangmyeong, Gyeonggi and Gyeyang, Incheon Begin Subscription
Unsubscribed Units in Seoul Districts with High Subscription Rates Also Open for Non-Qualified Subscription

Starting from the new year, signs are emerging that unsold apartment complexes in the Seoul metropolitan area will increase. This is because the sale prices of some complexes launching subscriptions in the metropolitan area are set about 100 million KRW higher than the surrounding market prices. Industry insiders predict that it may take several months for these complexes to achieve 'complete sales.' Experts forecast that this phenomenon will continue until the second half of the year, which is expected to be the timing for interest rate cuts, depending on the high-priced complexes and regions.

According to the Korea Real Estate Board's Subscription Home on the 4th, 347 units of 'Gwangmyeong Xi Hillstate SK VIEW (total 2,878 households)' in Gwangmyeong-si, Gyeonggi-do, are accepting first-priority subscriptions on that day. The sale price for an exclusive area of 84㎡ in this complex is set between 1.065 billion KRW and 1.235 billion KRW. Compared to the surrounding market price, it is about 10% more expensive, and the sales industry predicts that the non-priority subscription may extend to the 2nd or 3rd round.

On the 8th, 'Doosan We've the Zenith Central Gyeyang (total 1,370 households)' in Gyeyang-gu, Incheon, will open subscriptions. The general sale quantity is 314 units. The supply price for an exclusive area of 59㎡ in this complex is set between 458.3 million KRW and 504.7 million KRW, about 100 million KRW higher than the surrounding market price. Industry observers expect it may take more than six months to achieve complete sales.

Currently, the subscription market shows a significant divergence in subscription rates depending on the sale price. Complexes evaluated to have reasonable sale prices attract demand and succeed in complete sales, while those embroiled in high-price controversies face buyers' rejection. Park Jimin, head of Wolyong Subscription Research Institute, explained, “The purpose of new subscriptions is to purchase newly built apartments at a low price, but if the sale price is not much different from the market price, demand decreases.”

Even in Seoul, where subscription enthusiasm is still alive, complexes with high sale prices are being ignored by the market. In fact, 'e-Pyeonhansesang Dapsimni Artefore' and 'Imun I-Park Xi' in Dongdaemun-gu, Seoul, conducted non-priority subscriptions on the 2nd and 3rd, respectively. Both complexes had attracted popularity in first-priority subscriptions in October and November last year, recording competition rates of hundreds to one.

However, once the contract period began, many cases of contract cancellations occurred. Among the total 121 units of e-Pyeonhansesang Dapsimni Artefore, 54 units, and among the 1,467 units of Imun I-Park Xi, 122 units remained as unsold quantities.

The supply price for an exclusive area of 84㎡ in e-Pyeonhansesang Dapsimni Artefore was between 1.043 billion KRW and 1.154 billion KRW, and for Imun I-Park Xi, it was between 1.20599 billion KRW and 1.44026 billion KRW. Compared to 'Hwikyung Xi Decencia' (highest sale price 976 million KRW) and 'Raemian La Grande' (1.099 billion KRW), which were previously sold in the same district, these complexes were at least several tens of millions to up to 300 million KRW more expensive.

Experts predict that the struggle of high-priced complexes in subscriptions will continue for the time being. In particular, the formula 'high sale price = unsold/unsold contracts' is expected to remain until interest rates are lowered. Only when interest rates decrease can investment sentiment recover, and subscription demand rise again.

Kim Inman, director of the Real Estate Economy Research Institute, said, “Domestic interest rates are likely to fall around the second half of the year, so the subscription market is expected to remain cold until then.” Yeogyeonghee, senior researcher of the Real Estate R114 Research Team, also predicted, “Due to strict loan conditions and high interest rates, the tendency to postpone purchases and stay in the rental market will continue this year as well.”

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