Scarcity of New Apartments Increases... 'ePyeonhansesang Pyeongchon Urban Valley' Scheduled for Sale

[‘e-Pyeonhansesang Pyeongchon Urban Valley’ bird's-eye view]

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Last year, the numbers for housing permits, construction starts, sales, and completions all showed a significant decline compared to the previous year. To make matters worse, the supply of new housing units expected to be available next year is also projected to decrease. This is leading to a growing scarcity of ‘new apartments’ in the market, which is likely to cause frequent increases in housing prices due to the imbalance between supply and demand.

According to the ‘December 2023 Housing Statistics’ released by the Ministry of Land, Infrastructure and Transport on January 30, the cumulative number of housing permits from January to December last year was 388,891 units, a 25.5% decrease compared to the same period the previous year. This is the first time since the global financial crisis in 2008 (-33.2%) that permit numbers have dropped so sharply.

Along with permits, the numbers for construction starts, sales (approvals), and completions also declined. Construction starts last year totaled 209,351 units, down 45.4% from the previous year, while sales (approvals) amounted to 192,425 units, a 33.1% decrease year-on-year. Completions last year also fell by 23.5% to 316,415 units compared to the previous year.

Consequently, the volume of housing units scheduled for occupancy is also decreasing. According to the Korea Real Estate Board’s Subscription Home, the nationwide expected occupancy volume for the second half of this year is 172,843 units, dropping to 160,082 units in the first half of next year, and further down to 115,101 units in the second half of next year.

The real estate industry views it as unlikely that the volume of upcoming occupancy will increase in the future. This is because the market is expected to remain sluggish this year, and rising construction costs will significantly reduce the number of units available for sale.

In fact, a real estate industry insider said, “Due to rising raw material and labor costs, sales prices inevitably increase, but consumers feel burdened by the purchase price, naturally causing a sharp decline in available units.” He added, “As a result, the recent scarcity of new apartments on sale will continue, leading to a peculiar phenomenon where their value also rises.”

Accordingly, demand for DL Construction’s ‘e-Pyeonhansesang Pyeongchon Urban Valley,’ scheduled for sale in March, is expected to intensify. This is because the complex appears in the Pyeongchon living area, which combines excellent transportation, education, and living infrastructure, increasing the rarity of new apartments.

In particular, ‘e-Pyeonhansesang Pyeongchon Urban Valley’ boasts stability as it is constructed by DL Construction, which had a healthy debt ratio of around 85% as of September 2023 and received an ‘A- (Stable)’ unsecured bond credit rating for two consecutive years in 2022 and 2023 from Korea Ratings.

This ‘e-Pyeonhansesang Pyeongchon Urban Valley’ will be built in the Hogye-dong area of Dongan-gu, Anyang City, consisting of six buildings ranging from three basement floors to a maximum of 20 floors above ground, with a total of 458 units sized between 59 and 98 square meters. It offers excellent transportation conditions, including walking access to Geumjeong Station on subway lines 1 and 4, the GTX-C line (under construction since January), and the planned Hogye Station (tentative name) on the Indeokwon-Dongtan double-track railway (planned).

Additionally, the complex is a ‘Chopuma’ (elementary school within walking distance) community that includes Howon Elementary School, and residents can also access the Pyeongchon academy district, ranked number one in the number of academies in Gyeonggi Province (as of February 2024, according to the real estate information app Hogangnono).

Nearby, there are AK Plaza and Lotte Department Store, and residents can also enjoy Hogye Neighborhood Park. The location also offers easy access to LS Electric headquarters and global R&D campus, Anyang International Distribution Complex, Anyang IT Complex, and Pyeongchon Smart Square, ensuring excellent proximity to workplaces.

As this complex is supplied by DL Construction, it features floor plans and well-organized spaces favored by buyers. In addition to basic residential functions, various trend-reflecting community facilities such as a fitness center, indoor golf practice range, and lounge caf? will be introduced.

Detailed sales information for ‘e-Pyeonhansesang Pyeongchon Urban Valley’ can be found on the official website and KakaoTalk channel. Customers who register their interest on the website will have a chance to win various prizes through a lottery, and those who add the KakaoTalk channel can receive coffee coupons through a lottery.

The complex will be unveiled in March through a cyber housing exhibition hall.

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