[Asia Economy Reporter Cha Wanyong] This year, the number of local housing units for sale, including metropolitan cities, has decreased by about 38% compared to last year.
According to real estate R114 REPS data (as of January 13) on the 16th, the general supply volume in local areas this year is 84,775 households, down 38.15% (52,297 households) from 137,072 households last year. Compared to the 33.54% (31,112 households) decrease in the metropolitan area, this is 4.61 percentage points, or about 21,200 households, more significant.
This is the lowest level in 13 years since 2010. The local supply volume, which has consistently exceeded 100,000 households since 2011, sharply decreased again to around 80,000 households for the first time in five years since 2018 (about 85,000 households).
Looking at the regions, the decline in the Chungcheong area is prominent. Chungnam saw the largest decrease with 10,812 households, and Chungbuk also decreased by 9,339 households. Apart from this, most metropolitan cities and provinces also saw a reduction in supply. However, Gwangju and Busan saw a slight increase in the number of units for sale, with 2,636 and 2,402 households respectively.
As new supply in local areas significantly decreases, some express concerns about a shortage of new apartments. Especially, with the recently announced easing of regulations such as tax increases on multi-homeowners, it is expected that many will attempt subscription this year, raising concerns that a supply-demand imbalance could lead to a shortage of new apartments.
Kwon Il, head of the real estate info research team, said, “During the nationwide adjustment period, construction companies seem to have reduced the number of units for sale or have not yet set the supply schedule, resulting in fewer units counted than last year,” adding, “There is also a possibility that the planned volume may decrease further due to variables such as loan burdens caused by interest rate hikes.”
Meanwhile, new apartment supply continues in local areas at the beginning of the year.
In Iksan, Jeonbuk, ‘Iksan Busong Desiang’ will start special supply on the 16th, followed by first priority subscription for relevant and other areas on the 17th, and second priority subscription on the 18th. It consists of 745 households with a net area of 84㎡ and is a private-participation public sale apartment implemented by Jeonbuk Development Corporation. The Busong 4 district, where the complex is located, is being developed as a new residential area with about 1,700 apartment units, commercial facilities, and parks by 2024.
In Cheongju, Chungbuk, GS Construction plans to sell ‘Bokdae Xi The Sky’ this month. It consists of three buildings from three basement floors to 49 floors above ground, with 715 households ranging from 84 to 103㎡, and offers access to living infrastructure in Bokdae-dong such as Hyundai Department Store, Lotte Outlet, Cheongju Art Hall, and Sinyulbong Park.
In Buk-gu, Daegu, Daekwang Geonyeong plans to sell 1,078 households of ‘Daegu Waterpolis Daekwang Roseviang’ this month, and in the same month, 441 households of ‘Ulsan Boksan-dong Daekwang Roseviang’ will be supplied in Jung-gu, Ulsan.
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