[Practical Finance] Housing Market Flooded with 'Last-Minute Units' Avoiding Regulations

[Asia Economy Reporter Kim Yuri] Some are turning 'regulations into opportunities.' Following the full implementation of the private land pre-sale price ceiling system, restrictions on the resale of pre-sale rights in the metropolitan area and provincial metropolitan cities will be enforced this month. This month’s pre-sale market is flooded with 'last-chance units' aimed at avoiding these regulations. The volume of pre-sale units is nearly three times that of the previous month. With so many units available, opportunities have opened up even for applicants with relatively low subscription scores whose application dates overlap in the same area.

According to Real Today and others on the 5th, a total of 61,841 households nationwide (including rental units, excluding officetels) will be offered for pre-sale this month. Of these, 45,358 households will be available for general pre-sale. This includes 21,011 households in the metropolitan area and 24,347 households in provincial areas. Compared to last month, this represents an increase of 260.5% nationwide, 234.3% in the metropolitan area, and 288.4% in provincial areas.

This surge is due to complexes that submitted all resident recruitment applications by the 29th of last month to avoid the price ceiling system, along with last-chance complexes rushing to pre-sell before the strengthening of resale restrictions. By city and province, the distribution is as follows: Gyeonggi 17,776 households (39.19%), Daegu 5,646 households (12.45%), Busan 4,438 households (9.78%), Seoul 3,111 households (6.86%), Chungnam 2,508 households (5.53%), Ulsan 2,142 households (4.72%), and Gwangju 1,775 households (3.91%).

With a large number of new pre-sale complexes nationwide, buyers will have a wider range of choices. Major complexes include GS Construction’s 'DMC Central Xi,' 'DMC Fine City Xi,' and 'DMC Art Fore Xi' in Susaek-dong, Eunpyeong-gu, Seoul, as well as the 'DMC SK View I-Park Fore' supplied by the SK Construction and HDC Hyundai Development Consortium. These are transit-oriented complexes accessible to Susaek Station on the Gyeongui-Jungang Line and Digital Media City Station on Seoul Subway Line 6, Airport Railroad, and Gyeongui-Jungang Line.

In Geoje 2-dong, Yeonje-gu, Busan, Samsung C&T, Daelim Industrial, and HDC Hyundai Development are launching 'Lake County.' It is adjacent to Busan Subway Line 3’s Sports Complex Station, which provides convenient transfers to Seomyeon Station (Lines 1 and 2) and Suyeong Station (Lines 2 and 3). GS Construction and Daewoo Construction are supplying 'Sanseong Station Xi Purugio' in Sujeong-gu, Seongnam-si, Gyeonggi Province. This triple transit-oriented complex is accessible to Sanseong Station on Subway Line 8, as well as Dandaeogeori Station and Sinheung Station.

Ham Young-jin, head of the Zigbang Big Data Lab, said, "Recently pre-sold complexes located in prime areas such as 'The H Firstier I-Park' and 'Nowon Lotte Castle Signature' have shown subscription competition rates in the triple digits depending on exclusive area, with all types closing in the first priority." He added, "Since supply is expected to decrease after this month, last-chance complexes will continue to see high competition rates in subscriptions."