March Sees Lifting of Subscription Regulations... 19,000 Housing Units Supplied Nationwide

Regulatory Easing Expands Subscription Opportunities Including Non-Sequential Supply
However, Concerns Over Unsold Units Remain
75,000 Unsold Houses in January

In this month, the peak season for housing sales, about 19,000 households are expected to be supplied nationwide. With improvements in the conditions for non-priority subscription and the easing of resale restrictions set to be implemented from this month, attention is focused on whether the housing sales market sentiment will rebound.

According to the real estate platform 'Zigbang' on the 6th, out of 26 complexes and a total of 19,648 households in March, 15,588 households are preparing for general sales.

Among the 19,648 households supplied nationwide in March, 11,524 households are expected to be supplied in the metropolitan area. Gyeonggi-do plans the largest supply with 7,250 households, including Gwangmyeong Central I-Park and Paju Unjeong Xi Signature. In Seoul, one complex in Hwikyung-dong, Dongdaemun-gu, Hwikyung Xi Decencia, is preparing to sell 1,806 households.

In the provinces, 8,124 households are planned for sale, with Busan Nam-gu Uam-dong Doosan We've the Zenith Ocean City, etc., expected to supply the most with 3,399 households. New apartments will also be supplied in Gwangju with 1,558 households and Chungcheongbuk-do with 1,000 households.

The issue is how much the market can absorb. According to the 'January Housing Statistics' announced by the Ministry of Land, Infrastructure and Transport, unsold houses nationwide last month totaled 75,359 households, an increase of 10.6% from the previous month (68,148 households). This is the highest level in 10 years and 2 months.

As concerns about unsold houses grew, some complexes postponed their sales. In February this year, out of 16 complexes scheduled for sale with a total of 12,572 households and 9,924 general sales households, 11 complexes with a total of 8,662 households (supply performance rate 69%) and 6,252 general sales households (supply performance rate 63%) were actually sold.

However, attention is focused on whether the housing sales market sentiment will change due to the easing of subscription-related regulations such as non-priority supply from this month. The Ministry of Land, Infrastructure and Transport announced and immediately implemented a partial revision of the housing supply rules. From February 28, the requirements for being homeless and residency will be abolished for non-priority subscription. Accordingly, multi-homeowners who do not reside in the relevant area are expected to have an opportunity to purchase a home through non-priority subscription.

Also, the obligation for a one-homeowner who won a subscription in a speculative overheated district to dispose of their existing house has been abolished, and special supply will be possible for houses priced over 900 million won.

The easing of resale restrictions will also be implemented this month. In the metropolitan area, the resale restriction period was up to 10 years, but it will be eased to 3 years for public land and regulated areas, 1 year for densely controlled areas, and 6 months for other areas.

In non-metropolitan areas, the resale restriction period will be 1 year for public land and regulated areas, 6 months for metropolitan cities (urban areas), and completely abolished for other areas. The revision will be applied retroactively to apartments sold before the enforcement of the revised decree.

A Zigbang official said, "With the Ministry of Land, Infrastructure and Transport announcing and immediately implementing the revision of the housing supply rules on February 28, improving conditions for non-priority subscription, and the easing of resale restrictions scheduled for March, attention is focused on whether the housing sales market sentiment can rebound."