Effect of Seoul Housing Price Rise? Unsold Complexes Near Complete Sellout

'Dobong Geumho Eoullim River Park' Contract Rate 98%
"50% Vertical Increase Since Last May"
Some Unsold Units to Resume Sales Next Month

The upward trend in Seoul housing prices that began in the first half of this year is also bringing a positive breeze to unsold apartments. Complexes that had become unsold due to locational disadvantages and controversies over high sale prices are being completely sold out or are on the verge of complete sales.

Dobong Geumho Eoullim River Park in Dobong-dong, Dobong-gu, Seoul. Photo by Geumho Construction

According to the industry on the 27th, Kumho Construction's ‘Dobong Kumho Eoullim River Park (299 households)’ supplied in Dobong-dong, Dobong-gu, Seoul, recorded a contract rate of 98% as of the previous day. Out of 130 units for general sale, 127 units have been contracted. The remaining 3 units are on the lower floors, which are less preferred by buyers, and all are currently under provisional contracts.

This complex recorded an average competition rate of 10.5 to 1 in the first-priority subscription held in November last year. However, it failed to close all types. The supply price was relatively low in Seoul, ranging from 830 million to 905 million KRW for an exclusive area of 84㎡, and it was the first new apartment built in Dobong-dong in 13 years. Nevertheless, some units remained uncontracted, leading to non-priority subscriptions continuing until early this year.

Since then, as Seoul apartment transaction volumes increased and housing prices rose, the atmosphere changed. A Kumho Construction official said, "The contract rate has increased vertically by more than 50% compared to last May," adding, "With rising sale prices and housing prices, it seems that interest from actual buyers has increased as new apartments can be purchased in the 800 million to 900 million KRW range."

Kim In-man, director of Kim In-man Real Estate Economic Research Institute, explained, "This year’s sale prices have risen by about 25-30% compared to last year, increasing the price merit of last year’s sale complexes," and added, "In Seoul, except for urban-type residential housing or complexes with defects, most unsold units of general apartments have been consumed and will continue to decrease."

Perspective view of 'Sangdo Prugio Clavenue' in Sangdo-dong, Dongjak-gu, Seoul.

‘Sangdo Prugio Clavenue,’ which was considered a representative unsold complex in Seoul due to controversies over high sale prices, recently succeeded in complete sales as the last few remaining units were contracted. Despite being a post-sale complex with a short period from sale to final payment, the 84㎡ units were priced at about 1.4 billion KRW, higher than market prices, and the unsold units exceeded 90 (out of 771 general sale units) until early this year.

Some complexes are planning to resume sales as the real estate market recovers. ‘Cheonho Station Maestro,’ built by Hanmi Global D&I in Cheonho New Town (Cheonho Redevelopment Promotion District), still has 58 units unsold out of a total of 77 units for sale (as of the end of June). A Hanmi Global D&I official said, "Although the number of contracts increased slightly due to lack of sales promotion, we plan to resume promotion and sales after Chuseok next month."

According to the Seoul Real Estate Information Plaza on the same day, as of the end of June, the number of unsold units in Seoul was 959, down by 15 units from the previous month (974 units). Six units decreased in Gangbuk-gu, three units in Gangdong-gu, and two units each in Geumcheon, Mapo, and Gwangjin-gu.

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