27,000 Unsold Newly Built Homes After Completion... Upward Trend Resumes After One Month

Unsold Completed Homes Increase Again After Brief Decline
Non-Metropolitan Areas Struggle to Absorb Inventory
Government Implements Measures, but Purchases May Be Delayed

Last month, the number of unsold newly built homes after completion reached 27,057 units, showing a slight increase compared to the previous month. Previously, this figure had increased for 22 consecutive months from 2023 until May of this year, then declined in June, but has now returned to an upward trend after just one month.

According to the July housing statistics released by the Ministry of Land, Infrastructure and Transport on August 29, the total number of unsold homes last month was tallied at 62,244 units. This represents a 2.3% decrease from the previous month, marking six consecutive months of decline. The number of unsold homes in the Seoul metropolitan area dropped by 4.7%, while in non-metropolitan regions it decreased by 1.7%.

In contrast, the number of unsold homes after completion, which are considered particularly problematic, increased by 1.3% during the same period. More than 80% of these, or 22,589 units, are located outside the metropolitan area. By region, Daegu had the highest number with 3,707 units, followed by South Gyeongsang Province (3,468 units), North Gyeongsang Province (3,235 units), Busan (2,567 units), and Gyeonggi Province (2,255 units).

Apartment construction site in Bukgu, Daegu, where construction has been halted for 10 months due to workers' wage arrears. Photo by Kang Jinhyung

As unsold inventory in non-metropolitan areas remains difficult to absorb, the government is pursuing various measures such as Corporate Restructuring Real Estate Investment Trusts (CR-REITs) and purchases by Korea Land and Housing Corporation (LH). However, since these measures require certain procedures such as reviews, it is expected to take some time before the REITs or LH can actually make purchases.

With the continued economic downturn, the overall trend of declining housing supply indicators persists. Last month, the number of building permits issued was 16,115 units, a decrease of more than 26% compared to the same period a year earlier. While the metropolitan area saw an increase of over 7%, non-metropolitan regions shrank to less than half of last year's figure. However, construction starts increased, with the metropolitan area up by 36% and non-metropolitan regions by more than 31%. Nevertheless, both regions have seen a decrease in cumulative figures from January to last month compared to the previous year.

Last month, the number of apartment units pre-sold increased by more than 70% in the metropolitan area and by over 80% in non-metropolitan regions compared to a year earlier. However, this is partly attributed to a base effect, as the volume of pre-sales was particularly low during the same period last year. From January to July this year, the cumulative number of pre-sold units nationwide was 90,717, which is about 28% lower than the same period a year ago. Last month, the number of completed units increased by 47% in the metropolitan area, while it decreased by 44% in non-metropolitan regions.

Last month, there were 64,235 home sales transactions, a 13% decrease from the previous month. Jeonse and monthly rental transactions totaled 233,983, remaining at a similar level to the previous month.

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