This year, 40% of the private apartments that received subscription applications have been left unsold due to insufficient demand. In the metropolitan area, complexes in Incheon and Gyeonggi, excluding Seoul, have also failed to sell out.
According to the Korea Real Estate Board's subscription home on the 7th, among the 69 nationwide private apartments that received subscription applications from January to May of this year, 28 complexes (about 40.6%) had fewer applicants than the number of units supplied.
In Seoul, all four private apartments showed a competition rate of double digits and successfully sold out. In the subscription for the 'Raemian One Perla' provided in February in the Seocho District, a total of 4,635 applications were received out of 268 available units, resulting in a competition rate of 151.6 to 1.
In April, the subscription for the 'Cheonggye Norway Forest' in Hwanghak-dong, Jung-gu, recorded a competition rate of 21.3 to 1. In May, the 'Gocheok Prugio Hillstate' in Guro-gu achieved a competition rate of 13.5 to 1, while the 'Hillstate Medialle' in Eunpyeong-gu recorded a rate of 13.1 to 1.
On the other hand, unsold units are emerging in Gyeonggi and Incheon, excluding Seoul, in the metropolitan area.
Among 18 subscription complexes in Gyeonggi, unsold units have occurred in two areas. For the 'Pyeongtaek Brain City 10 Block & Nature Mirae Do' in the Pyeongtaek Brain City General Industrial Complex, only 96 applications were received for 1,396 units available. The 'North Suwon Imok District Daebang Dietre The Richet II' in the A3 block of Janam-dong, Suwon, also received applications for only 477 out of 1,678 units in May.
In Incheon, one out of five complexes was found to have insufficient applicants compared to the number of units available for subscription. The 'Yonghyeon Ubang IU Shell Central Marine,' supplied in March in the Michuhol District, received only 70 applications for 179 available units.
Outside the metropolitan area, the phenomenon of unsold units is even more serious. Last month, the 'Uiseong Golden Lexium' sold in Uiseong-gun, Gyeongbuk, received only one participant in its subscription for 90 available dwellings. The 'Deiation Park' in Bujeon-dong, Jin-gu, Busan, also received only 14 applications for 68 units. The 'Hanyang Lippes Edufore' in Hasandong, Gwangsan-gu, Gwangju, also had 19 applications for 111 units.
In particular, the phenomenon of 'unsold units after completion,' known as malignant unsold units, is increasing in the provinces.
As of last month, the number of unsold dwellings after completion nationwide was 26,422 units, an increase of 1,305 units compared to April. By region, unsold dwellings after completion decreased from 4,574 units to 4,525 units in the metropolitan area.
On the other hand, the number of unsold dwellings after completion in the provinces increased from 20,543 units to 21,897 units, with Gyeongbuk (593 units), Daegu (524 units), and Jeonbuk (217 units) showing the largest increases.
There are forecasts that the polarization of the housing market by region will further intensify.
Prof. Jo Hyun-wook of Konkook University’s Graduate School of Real Estate noted, 'While most regions have housing supply rates of 105% to 107% and are overflowing with homes, Seoul is at 91%, and Gyeonggi is at 95% to 97%, indicating a shortage of houses.' He added, 'The metropolitan area is expected to have a lower supply volume in the coming years, and with limited land remaining for construction, competition for subscriptions will intensify going forward.'
Professor Jo continued, 'In the provinces, unless there are strong policy supports such as easing loan regulations for multiple homeowners or reducing transfer taxes and acquisition taxes, it will be difficult to resolve unsold units for the time being.'