"End of Holiday, Start of Sales"…18,000 Households in Seoul, Where Are the Major Complexes?

[Asia Economy Reporter Yuri Kim] A significant boom is expected in the housing pre-sale market after the Lunar New Year holiday. Due to the temporary suspension of January pre-sales caused by the transfer of subscription tasks, and the rush by construction companies to pre-sell before the expiration of the pre-sale price ceiling exemption period at the end of April, a large volume of pre-sales is anticipated.

According to Real Estate 114 on the 27th, the total number of apartment pre-sale units scheduled from February to April is 81,592. This is about twice the amount compared to 47,739 units during the same period last year. In particular, the volume of pre-sales in February and March has increased significantly.

In Seoul, 17,797 units will be offered for pre-sale. In Seoul, projects such as the Dunchon Jugong Reconstruction in Gangdong-gu, which attracted attention as the largest integrated reconstruction complex in the country, as well as Heukseok 3 District Xi in Dongjak-gu and Hillstate Sewoon in Jung-gu, are expected to avoid the pre-sale price ceiling system.

Hyundai Construction, HDC Hyundai Development Company, Lotte Construction, and Daewoo Construction Consortium plan to supply the 'Dunchon Jugong Reconstruction' in Dunchon-dong, Gangdong-gu, Seoul, in April. Out of a total of 12,032 units, 4,786 units with exclusive areas of 84㎡ or less will be offered to the public. The complex is accessible via Dunchon-dong Station on Subway Line 5 and Dunchon Oryun Station on Line 9. GS Construction plans to redevelop the area at 259-89 Heukseok-dong, Dongjak-gu, Seoul, and pre-sell 'Heukseok 3 District Xi' in March. The complex consists of 26 buildings ranging from 5 basement floors to 20 above-ground floors, totaling 1,772 units, of which 370 units will be available for general sale. The complex is adjacent to the Hyeonchungwon Forest, providing a pleasant environment, and convenience facilities such as Chung-Ang University Hospital are easily accessible.

Additionally, there are 21,554 units in Gyeonggi Province, 8,937 units in Incheon, 7,160 units in Daegu, and 5,332 units in Gyeongnam. In Incheon, apartment pre-sales of over 1,000 units continue. In Bupyeong-gu, which has recently shown strong subscription trends, large complexes with over 1,000 units such as 'Bupyeong Bugaeseo Elementary School North Redevelopment (1,559 units)' and 'Hillstate Bupyeong (1,409 units)' are waiting to be launched. In Songdo, where subscription enthusiasm was high last year, 'Hillstate Songdo The Sky (1,205 units)' and 'Lake Songdo Phase 3 (1,110 units)' are scheduled to be supplied.

More than half of the pre-sale volume from February to April, 48,288 units, will be supplied in the metropolitan area. In Gyeonggi, which has the largest volume, large apartment complexes with over 1,000 units are about to be pre-sold in Suwon, Ansan, Hwaseong, Yangju, and other areas. Especially, popular areas such as Gwacheon Knowledge Information Town and Wirye New Town have pending supply, so locally high subscription competition rates are expected.

The volume of pre-sales in provincial areas is 33,304 units, relatively less than in the metropolitan area. Among these, market interest is high in major metropolitan redevelopment and reconstruction projects in cities such as Busan, which was removed from the adjustment target areas and where market sentiment is improving, as well as Daegu and Gwangju. This is mainly because infrastructure is generally good and residents can enjoy improved living environments due to redevelopment projects. 'Gwangju Yudong Redevelopment (2,240 units)' in Buk-gu, Gwangju, and 'Busan Deokpo 1 District Joongheung S-Class (1,572 units)' in Sasang-gu, Busan, are scheduled to be supplied by March.

Due to the government's strong regulations, price adjustments of existing apartments are expected, increasing the likelihood of intensified demand concentration on new apartments, which tend to have relatively strong price resistance. Accordingly, the subscription market, which will be in full swing after February, is expected to continue to attract demand similar to last year.

Yeokyunghee, Senior Researcher at Real Estate 114, said, "In popular metropolitan areas such as Seoul, Gwacheon, and Wirye, competition among buyers to win apartment subscriptions is expected to become fierce." She added, "However, due to higher entry barriers in the subscription market caused by restrictions on resale, loan regulations, and strengthened residency requirements, some demand may flow into regions that have avoided regulations in provincial areas." Accordingly, the subscription markets in major non-regulated areas such as Busan, which was removed from the adjustment target areas, as well as Daejeon and Gwangju, are expected to show localized strong trends.