"This Year's Reconstruction and Redevelopment Sale Volume, Largest Since 2000"

88,862 Households in the Seoul Metropolitan Area, 45,359 in Seoul
High Demand Due to Low Unsold Inventory Risk

This year, the volume of planned sales for redevelopment and reconstruction projects is expected to reach the highest level since 2000.

On the 9th, Real Estate R114 announced that the total number of apartments planned for sale this year from redevelopment and reconstruction projects nationwide was 147,185 units. This is the largest volume since Real Estate R114 began its survey in 2000 and is more than five times higher than the lowest performance year of 2010 (27,221 units).

The planned sales volume in the metropolitan area was 88,862 units, half of which are in Seoul (45,359 units). In the three Gangnam districts (Gangnam, Seocho, Songpa) alone, 18,792 units (across 16 sites) are expected to be released. Since the sale prices have been standardized upward, complexes subject to the sale price ceiling system will be supplied, leading to high subscription demand. However, considering that recent delays in sales have become common, some projects may not be able to launch sales within the year.

The reason for the large volume of sales in redevelopment projects this year is the low risk of unsold units. Redevelopment apartments are located in well-established old downtown areas with good infrastructure, making it easier to secure demand. Additionally, only units excluding those allocated to association members are offered for general sale, reducing supply pressure. Even in 2022, when the subscription market was sluggish, redevelopment apartments recorded an average subscription competition rate of 14.2 to 1, attracting more popularity than other complexes. It also appears that the perception that the projects could no longer be postponed due to issues such as increased association member contributions had an impact.

The sales market in the new year is expected to take a 'breather.' Due to falling housing prices and rising sale prices, buyers remain cautious, and issues with project financing (PF) funding have emerged, so there may be a noticeable trend to wait for market conditions to improve before launching sales. Redevelopment projects have many variables, so only about half of the planned volume within the year is expected to be put up for sale.

Real Estate R114 explained, “Real demand buyers planning to apply for redevelopment apartments need to continuously check the sales schedules of their desired projects,” adding, “Except for complexes in the Gangnam area subject to the private land sale price ceiling system, competitiveness has decreased due to rising sale prices, so it is necessary to carefully compare with urgent sale listings and prices.”

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