70% of July Move-in Supply in the Seoul Metropolitan Area
Record High Number of Households Supplied Within the Year
Expectations for Relief from Supply Drought in the Seoul Metropolitan Area
[Asia Economy Reporter Hwang Seoyul] The supply drought is expected to be somewhat alleviated as the number of apartment move-ins in the Seoul metropolitan area in July reaches 17,100 units, the highest within the year. However, with both positive and negative factors such as interest rate hikes, rising raw material costs, and the reform of the price ceiling system for pre-sale apartments mixed together, attention is focused on how lively the pre-sale market will become.
According to Zigbang on the 27th, the total number of apartment move-ins nationwide in July is 24,523 units across 29 complexes, of which about 70% (a total of 19 complexes with 17,100 units) will move in within the Seoul metropolitan area. The metropolitan area move-in volume is the highest on a monthly basis this year and the largest since January last year.
By region, the number of move-ins increased compared to the previous month in Seoul, Gyeonggi, and Incheon, with Gyeonggi accounting for 64% of the total metropolitan area volume, or 10,945 units. In Gyeonggi Province, large complexes such as Maegyo Station Prugio SK VIEW (3,603 units) in Paldal-gu, Suwon City, and Uijeongbu Station Central Xi & Weave Castle (2,473 units) in Uijeongbu City will move in.
In Incheon, large-scale complexes with over 1,000 units such as Juan Castle & The Sharp Edufore in Juan-dong, Michuhol-gu (1,856 units), and Bupyeong Shinil Happy Tree The Roots in Sangok-dong, Bupyeong-gu (1,116 units) will be supplied, with a total of 4,843 units across 6 complexes moving in. In Seoul, a total of 1,312 units across 3 complexes are scheduled to move in.
In the provinces, where about 10,000 units moved in monthly on average from April to June, July shows a temporary slowdown. A total of 7,423 units across 10 complexes will move in, which is 27% less than last month’s 10,172 units. Complexes such as Daesin Haemoro Central (733 units) in Seo-gu, Busan; Gyelim Apart SK VIEW (1,715 units) in Dong-gu, Gwangju; The Sharp Yeomju Central Park (1,976 units) in Seo-gu, Gwangju; and e-Pyeonhansesang Geoje Euro Island (1,049 units) in Geoje City, Gyeongnam, will begin move-ins.
There are forecasts that the June 21 real estate measures will have a positive impact on the future move-in market. Kim Minyoung, a manager at Zigbang, said, "In particular, the measures from June 21 that reflect and realize construction costs and material prices in the pre-sale prices are expected to promote supply and reduce construction delay risks." However, he added, "Risks related to interest rate and inflation increases still remain, so market instability factors will not be easily resolved."
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