Nationwide supply up 15% from a year earlier

Seoul limited to 1 complex; Gyeonggi Province to offer 9,544 units, Incheon 3,908

Apartments in central Seoul as seen from Namsan on Monday morning. [Herald Business DB]
Apartments in central Seoul as seen from Namsan on Monday morning. [Herald Business DB]

About 22,704 apartments are scheduled for pre-sale across the country next month, up 15 percent from the same period last year. While roughly 60 percent of the supply is concentrated in the greater Seoul metropolitan area, Seoul itself will see only 85 units come to market — a sharp drop from the previous month.

According to a survey by real estate platform Zigbang released Monday, September's nationwide apartment pre-sale volume is set at 26 complexes and 22,704 units. That compares with 27 complexes and 19,659 units in September last year, an increase of 3,045 units, or 15 percent. General pre-sales are expected to reach 18,643 units, up 43 percent from 13,049 units in the same month last year.

In contrast to the nationwide increase, Seoul's pre-sale supply has fallen sharply. Zigbang had originally forecast seven complexes and 6,770 units coming to market in Seoul in August, but the schedule for Banpo The H Class T in Banpo-dong, Seocho-gu — a 5,002-unit development — was pushed back. Excluding that project, actual supply in August came to 1,768 units.

September's Seoul supply of 85 units represents a further drop of 1,683 units, or 95.2 percent, from that figure. The number of complexes also falls from six in August to just one in September. The sole Seoul project scheduled for September is Brownstone Mokdong in Mokdong, Yangcheon-gu, with only 29 of its 85 units available for general pre-sale.

In Gyeonggi Province, upcoming pre-sales include Gyeonggi Gwangju Station Lotte Castle Signature 2 in Ssangnyeong-dong, Gwangju with 1,249 units; The Sharp Bundang Heist in Jeongja-dong, Bundang-gu, Seongnam with 1,149 units; Hanwha Forena Jije Station in Segyo-dong, Pyeongtaek with 1,098 units; Hillstate Godeok Ellist A12BL in Godeok-dong, Pyeongtaek with 942 units; Hyangnam Station Grove Switzen in Hyangnam-eup, Hwaseong with 933 units; and Acme R Dongtan in Bansong-dong, Hwaseong with 812 units.

Incheon is set to offer a total of 3,908 units across three complexes, led by Sangok Station Xi Hillstate & Hanulchae in Sangok-dong, Bupyeong-gu with 2,706 units and Geomdan Centreville Grand Foret in Oryu-dong, Geomdan-gu with 878 units.

Outside the metropolitan area, pre-sales will take place in six regions: Gwangju with 3,216 units, South Chungcheong Province with 3,152 units, Busan with 1,183 units, Ulsan with 700 units, North Jeolla Province with 602 units and Daegu with 314 units. In Gwangju, Champions City 1st Phase in Im-dong, Buk-gu will supply 3,216 units. In South Chungcheong Province, upcoming projects include Dujeong Station Prugio Grand Peak in Seongjung-dong, Seobuk-gu, Cheonan with 1,438 units and Cheonan I'Park City 4th Complex in Budae-dong with 818 units.

Rising interest rates and tighter lending regulations add to the financing burden on buyers and are seen as key variables for the September pre-sale market. Kim Eun-seon, head of Zigbang's big data lab, said demand is likely to concentrate on complexes with competitive pre-sale prices and strong locations, and that subscription performance could vary by region and price range. Kim added that as supply is spread widely across different areas, buyer choices will likely differ based on regional housing market conditions, pre-sale prices relative to surrounding market prices and financing conditions.

Some complexes may also adjust their pre-sale schedules around the Chuseok holiday. Subscription demand is expected to diverge based on actual supply volume, pre-sale price competitiveness, location and financing conditions.


quq@heraldcorp.com