Nationwide Unsold Housing Units Near 70,000... 17.4% Increase in One Month

Ministry of Land Announces Nationwide Unsold Housing Statistics

[Asia Economy Reporter Cha Wanyong] As of the end of December last year, the nationwide unsold housing inventory reached 68,107 units. The situation is rapidly worsening, with unsold housing increasing by about 10,000 units in just one month. However, following the government's consecutive measures in November and December last year to ensure a soft landing for the real estate market, housing transactions in Seoul showed a slight rebound in December.

Status of Unsold Housing Units by Year. [Data from Ministry of Land, Infrastructure and Transport]

According to the Ministry of Land, Infrastructure and Transport on the 31st, as of the end of December last year, the nationwide unsold housing inventory was counted at 68,107 units. This is the first time in seven years since 2015 (62,000 units) that the nationwide unsold housing inventory has exceeded 60,000 units.

The nationwide unsold housing inventory remained below 30,000 units at 27,910 units until June last year but has sharply increased since the second half of the year. It recorded 31,284 units in July, 32,722 units in August, 41,604 units in September, 47,217 units in October, 58,027 units in November, and 68,017 units in December, showing an increase for eight consecutive months.

In particular, the recent rate of increase is steep. Following an increase of 10,810 units in November last year, December also saw an increase of 10,080 units, marking two consecutive months of surging increases exceeding 10,000 units.

Last year, the nationwide housing transaction volume was 508,790 cases, a 49.9% decrease compared to 1,015,171 cases in 2021. This is the lowest since housing transaction volume statistics began in 2006. Seoul's housing transaction volume was only 56,007 cases, down 55.8% compared to the same period last year.

For December alone, the housing transaction volume was 28,603 cases, a 5.4% decrease from the previous month (30,220 cases). The metropolitan area recorded 11,127 cases, a decrease of 301 cases (2.6%) from the previous month, but the provinces recorded 17,476 cases, a decrease of 1,316 cases (7.0%), pulling down the overall transaction volume.

However, in Seoul, the housing transaction volume in December was 2,844 cases, an 11.4% increase from the previous month (2,552 cases). Seoul apartment transactions, which hit a record low of 761 cases in the previous month since statistics began in 2006, increased to 1,001 cases in December.

The total monthly rental (jeonse and wolse) transaction volume in December was 211,533 cases, a 1.8% decrease compared to the same period last year. Monthly rent (wolse) transactions were 115,040 cases, a 15.7% increase from the same month last year, but jeonse transactions were 90,693 cases, a 16.8% decrease during the same period. This is interpreted as a contraction in jeonse demand due to the sharp increase in interest burden on jeonse loans following interest rate hikes.

Last year, both housing permits and construction starts showed poor performance. The nationwide housing permit performance last year was 521,791 units, a 4.3% decrease from the previous year (545,412 units). Nationwide housing construction starts were 383,404 units, a sharp 34.3% drop from the previous year (583,737 units). The metropolitan area recorded 186,408 units, down 37.9% from the previous year, and the provinces recorded 196,996 units, down 30.5%.