Increasing Unsold Housing Units, Surpassing 5,000 in the Seoul Metropolitan Area

Urban landscape viewed from Namsan, Seoul. Photo by Moon Honam munonam@

[Asia Economy Reporter Cha Wanyong] Unsold housing units are accumulating amid an extreme real estate transaction freeze. In particular, the number of unsold units in the Seoul metropolitan area, where the volume is rapidly increasing, surged again in August, surpassing 5,000 units.

According to the Ministry of Land, Infrastructure and Transport on the 2nd, the total number of unsold houses nationwide in August was 32,722 units, an increase of 1,438 units (4.6%) compared to the previous month. Unsold units in the metropolitan area were 5,012 units, up 483 units (10.7%) from the previous month, while the provinces recorded 27,710 units, an increase of 955 units (3.6%) during the same period.

As the housing sales market stagnates, the number of housing sales (approvals) also decreased. The number of apartment sales nationwide in August was 163,714 units, down 18.7% compared to the same period last year. In the metropolitan area, sales were 73,072 units, down 21.1% year-on-year. In the provinces, 90,642 units were sold, a decrease of 16.5% compared to the same period last year.

On the other hand, the volume of jeonse and monthly rental transactions increased. From January to August, the total number of jeonse and monthly rental transactions (based on reporting date) was 2,008,960 cases, up 27.7% compared to the same period last year. The proportion of monthly rent in jeonse and monthly rental transactions was 51.6%, an increase of 9.0 percentage points compared to 42.6% in the same month last year.