'Unsold Housing Fear' Spreads to the Capital Area... Undersupply Surges in Anseong, Pyeongtaek, and Icheon, Gyeonggi Province

Only 17 of 980 Priority Units (1.7%) Registered in Gongdo-eup, Anseong-si, Gyeonggi
Fear of Unsold Units Spreads Despite Financial Benefits Including Interest-Free Interim Loans

[Image source=Yonhap News]

[Asia Economy Reporter Hwang Seoyul] As the enthusiasm in the subscription market rapidly cools down, unsold units are emerging one after another in complexes within the metropolitan area. With the housing market stagnating due to interest rate hikes and loan regulations, the 'unsold unit fear' that started in the provinces is now quickly spreading to the outskirts of Gyeonggi Province, including Anseong, Icheon, and Pyeongtaek.

According to Choyang Home on the 25th, only 17 households applied for the first-priority subscription in the first-priority local general supply of 'La Porte Gongdo' in Gongdo-eup, Anseong-si, Gyeonggi Province, which closed the day before. The number of households offered for general supply is 980. Although second-priority local and other area subscription applications remain, the results are noticeably poor.

This appears to be influenced by the cooling buyer sentiment in Anseong-si due to this year's real estate market slump, affecting the subscription market as well. According to the Gyeonggi Real Estate Portal, apartment purchase transactions in Anseong-si from January to July totaled 3,357 cases, but this year dropped sharply to 1,541 cases. 'e-Pyeonhansesang Anseong Granluce,' which closed its first and second priority general supply subscription in March, also had 356 units unsold, and 'Anseong Woobang IU Shell STG,' generally supplied at the end of December last year, had 580 units unsold.

Photo by Moon Honam munonam@

The situation is similar in the outskirts of Gyeonggi Province, including Anseong-si, Icheon, and Pyeongtaek. From January to July this year, the number of sales in Pyeongtaek-si (3,494 cases) and Icheon-si (1,243 cases) decreased by 59.49% and 49.90%, respectively, compared to the previous year. According to Real Estate R114, the average subscription competition rates for first and second priorities in these three areas this year were quite low: Pyeongtaek (2.72 to 1), Icheon (2.72 to 1), and Anseong (0.58 to 1). Although the overall subscription competition rate has decreased compared to the previous year, it is even lower when compared to Siheung-si (21.27 to 1), Bucheon-si (12.01 to 1), and Anyang-si (16.11 to 1), which are relatively close to Seoul during the same period.

In fact, in Pyeongtaek, 'e-Pyeonhansesang Pyeongtaek Highcent (4BL)' and 'e-Pyeonhansesang Pyeongtaek Laciello (2-BL),' which were supplied this month in Hyeondeok-myeon, had 445 and 601 units unsold, respectively. In April, 'Icheon Baeksaji District 1BL Shinhan Silk Valley' in Baeksa-myeon, Icheon-si, also had 247 unsold units, mainly apartments under 84㎡ in exclusive area. However, the complex continued sales afterward and completed all sales, including unsold units, by mid-June.

Although financial benefits were offered to reduce the financial burden on subscription applicants triggered by interest rate hikes, it seems these did not provide significant advantages to applicants. 'Gongdo La Porte' and 'e-Pyeonhansesang Pyeongtaek Highcent (4BL)' announced that regardless of the housing type, only 10 million KRW and 20 million KRW, respectively, need to be paid as the initial deposit at the time of contract, with the remaining deposit payable within 30 days. The interim payment loan is also interest-free.

Park Jimin, head of the Monthly Subscription Research Institute, analyzed, "Since the overall real estate market is not good, prices are falling first in the outskirts of Gyeonggi Province, which is far from Seoul, and the popularity of subscriptions is falling together."