The nationwide housing supply in the first half of this year has decreased by about 26% compared to the first half of last year. The severe real estate market downturn in regions resulted in an approximately 40% drop, leading to a reduction in overall housing supply.
According to an analysis by the real estate research firm RealToday based on data from Real Estate R114 Labs, the housing supply from January to June of this year (excluding rental units, including planned units for June) recorded 55,339 units. This represents a decrease of 25.8% (19,238 units) compared to the first half of last year (74,577 units).
Seoul saw an increase of 87.7% compared to the first half of last year (1,365 units), with 2,562 units supplied. Gyeonggi increased from 20,243 units to 21,564 units, an increase of 6.5%.
Busan (5,254 units → 6,988 units), Daegu (1,818 units → 2,516 units), Gyeongnam (1,820 units → 2,917 units), Gyeongbuk (1,851 units → 255 units), and Chungbuk (1,968 units → 2,480 units) also saw an increase in housing supply.
In contrast, Gwangju decreased from 8,647 units to 300 units, while Jeonnam only saw 208 units, a drop of 93.6%. Gangwon had about 80% reduction with 656 units supplied.
Incheon (7,857 units → 4,115 units), Daejeon (4,421 units → 903 units), Ulsan (2,628 units → 1,106 units), Jeonbuk (3,308 units → 1,703 units), and Chungnam (6,266 units → 4,568 units) also experienced a decline in housing supply.
The metropolitan area supplied 28,241 units, a decrease of about 1,200 units compared to the first half of last year (29,465 units), while regions outside the capital decreased by about 40% to 20,798 units.
The local real estate market is seeing a decline in supply due to decreased demand, according to industry insiders. Construction companies are considering their revenue after a drop in subscription competition and an increase in so-called 'post-construction unsold units', leading them to cancel or postpone housing projects.