Q2 Housing Sales: 110,000 Units Nationwide to Be Released

Transfer of Subscription Work and COVID-19 Impact Delay Q1 Sales
Extension of Sale Price Ceiling Suspension... Dunchon Jugong and Others' Sales Postponed to July

[Asia Economy Reporter Yuri Kim] The housing sales market is gearing up in earnest with the arrival of spring.

According to Real Estate 114 on the 27th, the total number of apartment units scheduled for sale in the second quarter of this year is 117,028 units (including rental units). This is about 1.3 times higher compared to the same period last year, which recorded 92,775 units sold. By month, the number of units scheduled for sale in April is 55,411, which is higher than May (36,738 units) and June (24,879 units).

The increase in April's scheduled sales volume compared to previous years appears to be due to the postponement of a significant portion of March's scheduled sales because of the impact of the novel coronavirus disease (COVID-19). In fact, the number of units scheduled for sale in April was initially recorded as 45,595 units at the end of February, but after the COVID-19 pandemic was declared on March 12, the figure rose to 55,411 units as of the March 26 survey.

Most of the postponed sales volumes are from provincial areas. Projects such as Sokcho The Ocean Xi in Sokcho-si, Gangwon Province; Seongseong Lake City Doosan We’ve in Cheonan-si, Chungnam Province; and Daegu Doryu-dong Centreville in Dalseo-gu, Daegu, delayed their sales schedules from March to April. Meanwhile, in the Seoul metropolitan area, the exemption period for the price ceiling system on pre-sale prices was extended by three months until the end of July. Projects originally scheduled for April sales, such as Dunchon Jugong Reconstruction in Gangdong-gu, Seoul; Jeungsan 2 District in Eunpyeong-gu; and Susaek 6 and 7 Districts, postponed their sales to July, while Gwangmyeong Prugio Centville in Gwangmyeong City was delayed until May.

By province, the number of units scheduled for sale in the second quarter is highest in Gyeonggi with 30,658 units, followed by Incheon with 13,976 units, Busan with 13,137 units, Daegu with 11,804 units, and Seoul with 10,379 units. In the metropolitan area, 55,013 units are expected to be sold, which is about 7,000 units fewer than the 62,015 units in provincial areas. This represents a 13.9% increase compared to 48,288 units sold in the same period last year.

In Seoul, sales will begin for Shinbanpo 13th Complex and Heukseok 3 District, along with large-scale apartment complexes with over 1,000 units such as Sangye 6 District and Raemian Elinite. In Gyeonggi Province, sales volumes in areas adjacent to Seoul are expected to attract attention. These include Gwangmyeong Prugio Centville in Gwangmyeong City near Guro-dong, DMC Riverpark Xi in Deogeun District adjacent to Sangam-dong, Wirye New Town Umi Lin 2nd Phase with good access to Gangnam, and Sanseong Station Central Park Xi & Prugio. In Incheon, attention is focused on whether the strong sales momentum from last year in Songdo New City, the hotspot for subscription success, will continue.

In the provinces during the second quarter, Busan and Daegu have large volumes. The Busan sales market is showing a smooth trend, with Ssangyong Platinum Haeundae in Haeundae-gu recording a high average subscription competition rate of 226 to 1 in March this year. In the second quarter, large-scale branded apartments such as Raemian Lake County (4,470 units), Buam 1 District (2,195 units), and Daeyeon 4 Reconstruction (1,374 units) will be launched. In Daegu, sales will take place in Suseong-gu and Dong-gu, which had good subscription results last year.