According to housing statistics for March released by the Ministry of Land, Infrastructure and Transport on April 29, the number of unsold homes nationwide at the end of last month was 68,920 units, a decrease of 1.6% from the previous month. However, the number of unsold homes after completion was 25,117 units, an increase of 5.9% over the same period. This is the highest level since August 2013, when there were 26,453 units. The number of unsold homes after completion has continued to increase for 20 consecutive months since August 2023.

25,000 Unsold Houses After Completion... 20 Consecutive Months of Increase
Daegu Has the Highest with 3,252 Houses, Notably in Gyeongnam and Other Yeongnam Areas

By region, the number of unsold homes after completion in the Seoul metropolitan area was 4,574 units, similar to the previous month. In regional areas, the figure increased by 7.1% from the previous month to 20,543 units. Daegu had the highest number with 3,252 units, followed by Gyeongnam (3,026 units), Gyeongbuk (2,715 units), and Busan (2,438 units), with the Yeongnam region both having a large number and showing a marked increase. Although Jeju (1,605 units) and Jeonnam (2,392 units) also have high levels of unsold inventory, the upward trend has stopped in these areas.

As part of efforts to resolve the unsold housing issue, the government’s Corporate Restructuring (CR) REIT, which has been promoted since last year, was registered for the first time this month. The REIT registered by JB Asset Management plans to purchase 288 unsold apartment units in Daegu. According to the Ministry of Land, Infrastructure and Transport, including the units to be purchased by other REITs that are about to be registered, nearly 2,000 units are expected to be acquired. Separately, Korea Land and Housing Corporation (LH) is coordinating with developers and others to purchase 3,000 units. Even if these plans proceed as scheduled, it will not be easy to resolve the overall unsold housing problem.

Government Registers First Corporate Restructuring REIT This Month
But Regional-Centered Slump...Overall Unsold Inventory Not Easy to Resolve

Meanwhile, the number of housing permits issued last month was 31,033 units, up 148.2% from the previous month. Although the increase is significant, the rise is interpreted as a base effect, since the volume had been steadily declining due to the housing market slump. In the construction industry, permits are considered a leading indicator, but last month's permit volume still falls short of the average for previous years. Housing starts last month were 13,774 units, up 36.8% over the same period.

The number of units offered for sale last month, mainly apartments and other multi-family housing, was 8,646 units, a 60.6% increase from the previous month. This high growth rate is also due to the fact that there were no new apartment offerings in the Seoul metropolitan area in February. However, the volume remains lower compared to previous years. The number of completed units last month was 26,124, a decrease of 27.8% from the previous month.

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Last month, the number of housing transactions was 67,259, an increase of 32.7% from the previous month and 27.3% from the same period last year. Apartment transactions in Seoul led the increase, with 9,349 transactions, about double the figure for the same period. The surge in transactions was driven by the issue of lifting and re-designating land transaction permit zones in the Gangnam area of Seoul. Last month, the number of monthly and jeonse rental transactions was 239,044, of which monthly rentals accounted for 141,531, or 59.2%.