Status of Unsold Houses Nationwide in September 2020 (Provided by the Ministry of Land, Infrastructure and Transport)
[Asia Economy Reporter Chunhee Lee] As of the end of last month, the number of unsold houses nationwide decreased by 1.8% compared to the previous month. This is the lowest level in 5 years and 4 months. Analysts suggest that with a decrease in housing supply expected, buyers are turning their attention to unsold houses to secure their own homes before it’s too late.
The Ministry of Land, Infrastructure and Transport announced on the 4th that as of the end of last month, the total number of unsold houses nationwide was 28,309 units. This is a 1.8% (522 units) decrease compared to 28,831 units in August, the previous month. It is the lowest figure since May 2015, when 28,142 units were recorded, marking the lowest level in 5 years and 4 months.
By region, the metropolitan area had 3,806 units, and the provinces had 24,503 units, with the provinces accounting for an overwhelming majority of unsold houses. However, while the metropolitan area increased by 640 units (20.2%) from 3,166 units in the previous month, the provinces showed the opposite trend, decreasing by 4.5% (1,162 units) from 25,665 units in the previous month.
Notably, among the 17 metropolitan local governments nationwide, Sejong was the only area with no unsold houses. Since April 2016, when the last 3 unsold houses in Sejong were sold, there have been zero unsold houses for 4 consecutive years as of May 2016.
The local government with the highest number of unsold houses nationwide is Gyeongnam. Currently, Gyeongnam has 8,163 unsold houses. The number of unsold houses in Gyeongnam, which was 12,269 units at the end of last year, has been decreasing, falling below 10,000 units to 9,971 units in May. Following Gyeongnam are Gyeonggi (3,338 units), Gyeongbuk (3,325 units), Gangwon (3,060 units), and Chungnam (3,030 units).
By size, there were 1,671 unsold medium-to-large houses exceeding the 'National Housing Size' of 85㎡, and 26,638 unsold small-to-medium houses below that size. Medium-to-large houses decreased by 13.7%, and small-to-medium houses decreased by 1.0% compared to the previous month.
Post-construction unsold houses, known as 'malignant unsold houses,' numbered 16,838 units, a 5.3% decrease from 17,781 units in July, the previous month. By region, Gyeongnam had the most with 5,732 units, followed by Gyeongbuk with 2,605 units, Gyeonggi with 1,574 units, and Chungnam with 1,570 units.
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