Apartment and Multi-family Housing Move-in Volume Expected to Plunge 20% Next Year

National Apartment Housing Supply Drops from 360,000 Units This Year to 280,000 Next Year
Apartment Units Also Decrease from 330,000 to 240,000
New Supply Significantly Reduced Due to Real Estate Market Slump

Next year, the nationwide supply of apartments and multi-family housing units scheduled for occupancy is expected to decrease by more than 20% compared to this year. This significant reduction in supply is due to soaring construction costs amid a sluggish real estate market.

According to the "Multi-family Housing Scheduled Occupancy Supply Information" jointly released on the 12th by the Korea Real Estate Board and Real Estate R114, the estimated number of multi-family housing units (based on 30 households or more) scheduled for occupancy nationwide next year is 275,183 units. This represents a 24% decrease compared to this year's scheduled occupancy supply of 364,418 units.

In the metropolitan area, Gyeonggi's scheduled multi-family housing occupancy supply next year is expected to be 74,092 units, a 36% decrease from this year's 116,595 units, while Incheon is projected to decline by 10%, from 33,415 units this year to 29,950 units next year. In contrast, Seoul is expected to see a 9% increase during the same period, from 28,664 units to 31,365 units.

Among other regions, Gwangju shows the largest decline with a 64% decrease (from 11,946 units this year to 4,300 units next year). Daegu (23,278 units → 13,120 units) and North Gyeongsang (Gyeongbuk) (21,563 units → 11,955 units) are expected to decrease by 44% and 45%, respectively.

When focusing specifically on apartments, the decline is expected to be even greater. The nationwide apartment occupancy supply scheduled for next year is estimated at 244,259 units, about 27% less than this year's 332,609 units. This is the lowest level in 12 years since 2013 (199,633 units).

Gwangju is expected to decrease by 54%, from 9,386 units this year to 4,300 units next year, and North Gyeongsang by 50%, from 24,041 units to 11,955 units. Daegu and Sejong are also expected to decline by 43% (23,457 units → 11,920 units) and 28% (3,616 units → 1,027 units), respectively. Conversely, Seoul is projected to increase by more than 20,000 units next year, reaching 32,201 units compared to 11,422 units this year.

The decrease in scheduled occupancy supply is due to the real estate market downturn and the sharp rise in construction costs, which have hindered construction companies from actively pursuing new supply. In particular, the supply of units for sale in the metropolitan area has been declining since 2020. It slightly decreased from 109,306 units in 2020 to 106,872 units in 2021, and further dropped to 87,170 units in 2022. This year, the supply is estimated at 59,850 units, 8,753 units fewer than last year's 68,633 units.

[Image source=Yonhap News]

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