Cancellations and Delays in Model House Openings Continue Due to New Coronavirus Impact

On the 3rd, as concerns over the spread of the novel coronavirus infection grow, the lobby of COEX in Gangnam-gu, Seoul is quieter than usual. Photo by Mun Ho-nam munonam@

[Asia Economy Reporter Lee Chun-hee] The impact of the novel coronavirus infection (Wuhan pneumonia) is sweeping through the housing pre-sale market. Even before this year's pre-sale market has fully opened, concerns over the spread of the novel coronavirus are causing delays and disruptions in the subscription schedules.

According to the construction industry on the 3rd, the opening of the model house for 'Maegyo Station Prugio SK View' in Suwon, Gyeonggi Province, which was scheduled for the 14th, has been canceled. This complex is being supplied through the redevelopment of Suwon Paldal 8 District by Daewoo Construction and SK Construction. Following GS Construction's two-week postponement of the model house opening for 'Cheongna Hills Xi' in Daegu from the 7th to the 21st, this is the second case of a pre-sale schedule change to prevent the spread of the novel coronavirus.

Instead, Daewoo Construction and SK Construction plan to start subscriptions from the 18th after the announcement of the resident recruitment on the 7th, and will provide related information to prospective subscribers through a 'cyber model house' prepared on their website.

A Daewoo Construction official stated, "Since preparations to showcase the actual model house to subscribers have already been completed, once the novel coronavirus situation calms down, we plan to use it for contract signing with winners and for checking the model units."

▲ Maegyo Station Prugio SK View, Suwon-si, Gyeonggi-do (Provided by SK Engineering & Construction)

The construction industry had initially prepared to install thermal imaging cameras and provide hygiene products such as masks and hand sanitizers, but as the outbreak has spread, they appear to be taking comprehensive measures.

The problem is that if the novel coronavirus outbreak continues, it is highly likely to cause significant damage to the construction industry. Currently, Chinese health authorities expect the peak of the novel coronavirus spread to occur over the next two weeks.

Already, this year's pre-sale market has been on a one-month hiatus due to the transfer of services to the Korea Real Estate Board's 'Subscription Home' service, and if the novel coronavirus does not subside, the hiatus period may be extended. During the 2015 Middle East Respiratory Syndrome (MERS) outbreak, construction companies also delayed the opening of model houses by about 2 to 3 weeks to prevent the spread of the epidemic, so the burden on construction companies is expected to increase further.