Especially local supply at 7,071 households hits lowest this year
Number of buyers facing difficulty securing final payments expected to rise
[Asia Economy Reporter Onyu Lim] "The number of people coming to view houses is decreasing, making it difficult to dispose of existing homes, and the number of prospective buyers struggling to secure the remaining balance may increase." (Zigbang official)
Amid the prolonged COVID-19 pandemic, the outlook for the nationwide apartment move-in market in October is bleak. In particular, the volume of move-ins in provincial areas is expected to hit the lowest level this year.
According to Zigbang on the 3rd, the scheduled nationwide apartment move-in volume this month is a total of 17,865 households, including 14 complexes in the metropolitan area and 15 complexes in provincial areas. Considering that the average monthly move-in volume in the third quarter was about 30,000 households, this is only about half. Compared to last month’s 26,681 households supplied, it is about 33% less.
The decrease in move-in volume is largely due to the reduction in provincial areas where new move-ins had been concentrated for some time. The scheduled move-in volume in provincial areas this month is 7,071 households, the lowest this year.
In provincial areas, move-ins are mainly taking place in the Yeongnam region, including Busan, Gyeongnam, and Gyeongbuk. Complexes such as Seomyeon I-Park 1st Complex (1,862 households)/Seomyeon I-Park 2nd Complex (282 households) in Jeonpo-dong, Jin-gu, Busan; Apsan Bongdeok Yeongmu Yedam (622 households) in Bongdeok-dong, Nam-gu, Daegu/Suseong Sky Chae Releve (709 households) in Beommul-dong, Suseong-gu; and Hillstate Sejong River Park (672 households) in Sodam-dong, Sejong are holding move-ins.
In the metropolitan area, where the previous month’s volume was relatively low at 6,770 households, the volume is expected to increase by 59% to 10,794 households this month. In Gyeonggi Province alone, 7,415 households will move in, including Grand City Xi 2nd Phase (2,872 households) in Sadong, Sangnok-gu, Ansan, and The Sharp Jije Station Central Park (2,124 households) in Dongsak-dong, Pyeongtaek.
The scheduled move-in complexes in Seoul include three complexes totaling 1,921 households: Forena Yeongdeungpo (182 households) in Yeongdeungpo-dong 7-ga, Yeongdeungpo-gu; Hillstate Classian (1,476 households) in Singil-dong; and e-Pyeonhansesang Mullae Eduplatz (263 households) in Mullae-dong 6-ga. In Incheon, 1,458 households will be supplied in Songdo and Jakjeon-dong areas.
Although the spread of COVID-19 has recently been somewhat contained, social distancing continues nationwide, and the new apartment move-in market is expected to be impacted.
According to the Korea Research Institute for Housing and Urban Affairs, the nationwide housing move-in business condition index has recorded levels in the 60s for two consecutive months (July 76, August 67.5, September 69.6). The move-in conditions are expected to continue to deteriorate in September as well.
A Zigbang official said, "To prevent the spread of COVID-19, move-in marketing and pre-inspections are being conducted in a limited manner, and additional variables are expected to follow."
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