Unsold Units Occur Whenever Apartments Are Offered... All Three Sales Sites in the Capital Region and Provinces Are 'Undersubscribed'

[Asia Economy Reporter Cha Wanyong] A severe cold wave is sweeping through the subscription market. As of the announcement date in January, all three complexes that launched sales this year failed to sell. In the provinces, prices were lowered by about 100 million KRW compared to surrounding market prices, and in the metropolitan area, despite leveraging positive factors such as the Metropolitan Area Express Train (GTX), unsold units could not be prevented.

According to the Korea Real Estate Board's Subscription Home on the 19th, it was confirmed that all three nationwide complexes that announced the 1st and 2nd priority subscription competition rates the day before?‘Iksan Busong Desiang’ in Iksan, Jeonbuk, ‘Songdo Station Gyeongnam Honorsville’ in Incheon, and ‘Hoecheon 2nd Daekwang Rosebiang Central’ in Yangju, Gyeonggi?failed to fill the number of units for recruitment.

A severe cold wave is sweeping through the subscription market. The photo shows a quiet model house.
[Image source=Yonhap News]

The subscription competition rates by complex were 0.18 to 1 for Iksan Busong Desiang, 0.65 to 1 for Songdo Station Gyeongnam Honorsville, and 0.8 to 1 for Hoecheon 2nd Daekwang Rosebiang Central, respectively.

First, Iksan Busong Desiang, which offered a total of 727 units, recruited only 133 applicants in the 1st and 2nd priority subscriptions, leaving 594 units unsold. Initially, this complex attracted attention by setting prices about 100 million KRW lower than nearby newly built complexes, ranging from 318.5 million to 355.1 million KRW. On-site expectations were that at least 50% would be sold even if not fully sold out. However, due to the real estate market downturn and strong market hesitation, it collapsed helplessly.

Songdo Station Gyeongnam Honorsville, which touted the benefits of the lifting of the regulated area designation (November 2021) and the Songdo Station area urban development project, conducted general sales for 94 units (exclusive area 59㎡) but only 62 people applied. Market analysis suggests that the high price range of 436.4 million to 466.5 million KRW led to the sales failure.

At Hoecheon 2nd Daekwang Rosebiang Central, located in Block A20 of Hoecheon District, Deokgye-dong, Yangju, Gyeonggi, 213 subscription accounts were submitted for a total supply of 266 units. This complex was also hindered by prices exceeding the surrounding market prices. The sales prices were set at 382.4 million KRW for 74㎡ and 435 million KRW for 84㎡, while the current market price for 84㎡ apartments in the Hoecheon District area is in the mid-300 million KRW range.

In particular, Hoecheon 2nd Daekwang Rosebiang Central is located in an ultra-station area right in front of Deokgye Station on Line 1 of the metropolitan area, and with the upcoming opening of the Metropolitan Area 2nd Ring Expressway and GTX-C line, but it still could not avoid unsold units due to the real estate market downturn.