March Housing Supply Drops Sharply Due to Cheongyak Home Revamp... 8,466 Units for Sale
by Han Jinjoo
Published 26 Feb.2024 15:02(KST)
March Supply Volume Hits Record Low Since 2001
Spring Peak Season Housing Market Slows Until Early May
March, the beginning of spring, is the peak season for the housing sales market, but due to the revamp of the 청약홈 (Chungyak Home) platform, the sales market will enter a three-week hiatus. The volume of housing sales planned for March this year is the lowest since 2001.
According to Real Estate R114 on the 26th, the nationwide apartment sales plan for March 2024 is 8,466 units. By region, 5,582 units will be supplied in the metropolitan area, and 2,884 units in other provinces.
The planned sales volume by region for March is ▲Gyeonggi (4,651 units) ▲Daejeon (1,962 units) ▲Busan (922 units) ▲Incheon (732 units) ▲Seoul (199 units), with no sales plans in other regions.
Among the three large complexes with over 1,000 units scheduled for sale in March, two will be supplied in Gyeonggi Province: ▲Buksuwon Imok District Dietre The Rice I (1,744 units) and ▲Jije Station Ban Semiconductor Valley Harrington Place (1,209 units). In Seoul, the 'Gyeonghuigung Ubora (199 units)' subscription is planned.
In Daejeon, 'Daejeon Seongnam Woomirin New City (1,213 units)' and 'e-Pyeonhansesang Seodaejeon Station Centro (749 units)' will be supplied in March, opening the sales season this year. Additionally, Busan's 'Busan Jangan District Dietre B3 (507 units)' and 'e-Pyeonhansesang Geumjeong Maison County (415 units)' are also scheduled for sale.
With the planned sales volume in March dropping below 10,000 units and the subscription market temporarily pausing, there is a possibility that performance may be weaker than expected. Interest may be diverted due to the April general elections, so the spring sales market is expected to fully kick off after early May.
The Youth Housing Dream Subscription Account, designed to support young people in purchasing their first home, was launched on the 21st. The key factor is how many qualifying houses will be supplied in the metropolitan area, where there is a high demand from non-homeowners.
The Youth Housing Dream Subscription Account is available to non-homeowners aged 19 to 34 with an annual income of up to 50 million KRW. A maximum interest rate of 4.5% is applied to the deposit amount. If you win a subscription through this account, you can use the Youth Housing Dream Loan to borrow up to 80% of the sale price at a minimum interest rate of 2.2% for up to 40 years. Eligible houses are priced at 600 million KRW or less and have an exclusive area of 85㎡ or less.
As sale prices rise, the proportion of units priced at 600 million KRW or less and with an exclusive area of 85㎡ or less is decreasing. According to Real Estate R114's survey of general apartment sales nationwide (excluding pre-subscriptions) over the past two years, the proportion dropped from 72.5% (159,801 units out of 220,487 units) in 2022 to 58.8% (79,084 units out of 134,387 units) in 2023, a decrease of 13.7 percentage points.
Yeokyung Hee, Senior Researcher at Real Estate R114, said, "The rise in raw material costs, labor costs, and the relaxation of high sale price regulations have significantly impacted the increase in sale prices. In Seoul, the proportion of apartment units eligible for the Youth Housing Dream Loan is only in the 4% range, so the utilization of the subscription account is expected to be higher in the metropolitan area and provinces than in Seoul."
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