No Move-ins in Seoul Since July 2014
Pre-sale Restriction Lift Scheduled for March
Attention on Whether Sale of Pre-sale Rights Will Revitalize Transactions
The number of apartments scheduled for move-in nationwide next month is expected to be the lowest this year. In Seoul, there will be no move-in volume for the first time since July 2014. However, starting from May, the move-in volume is expected to increase again, so in areas where move-in volume is concentrated, phenomena such as an increase in jeonse listings and inventory backlog are anticipated.
According to Zigbang on the 27th, the total move-in volume for April is 19,065 households, the lowest monthly move-in volume this year. Although it is about 10% higher than the same period last year, it is about 3% lower than the previous month. By region, the metropolitan area will supply 10,769 households, and the provinces will supply 8,296 households, similar to the previous month.
In the metropolitan area, 8,341 households will move in in Gyeonggi Province, and 2,428 households in Incheon. Seoul has no scheduled move-in volume for the first time since July 2014. In Gyeonggi, a large-scale complex move-in is underway in Okjeong New Town, Yangju, with 3,665 households moving in. In the provinces, Daegu has the largest volume with 3,057 households moving in, followed by Dong-gu (1,881 households), Seo-gu (856 households), and Dalseong-gun (320 households). Other areas with significant volumes include Daejeon with 1,747 households, Gyeongbuk with 1,717 households, and Jeonbuk with 1,104 households.
However, from the upcoming May, the move-in volume is expected to increase. Especially in the provinces, the increase is larger than in the metropolitan area, so in areas where move-in volume is concentrated, phenomena such as an increase in jeonse listings and inventory backlog are expected.
Major complexes scheduled for move-in include Gwacheon The Center Desiang located in Galhyeon-dong, Gwacheon-si, Gyeonggi Province. This complex consists of a total of 584 households with exclusive areas ranging from 84 to 107㎡ and is the fourth to move in within Gwacheon Knowledge Information Town. Galhyeon Elementary School is located right next to the complex, and parks and commercial districts are nearby. During the main subscription, it recorded a competition rate of up to 744:1, and a non-ranking subscription for recently canceled contracts is planned. Move-in is scheduled to start from mid-April, and jeonse listings are currently available around 600 million to 650 million KRW for the 84㎡ exclusive area.
Yangju Okjeong New Town Jeil Punggyeongchae Lake City (A10-1, A10-2) is located in Okjeong-dong, Yangju-si, Gyeonggi Province, in Yangju New Town. Block A10-1 has 1,246 households, and block A10-2 has 1,228 households, making a total of 2,474 households in the large-scale complex. The area consists of exclusive spaces ranging from 74 to 101㎡. Move-in is scheduled to begin in early April.
Gimpo Masong Daebang Elyum Central Park is located in Tongjin-eup, Gimpo-si, Gyeonggi Province. It consists of a total of 841 households with exclusive areas ranging from 59 to 84㎡. It is located in the Masong Residential District and is the largest private sale complex in the Masong Residential District. Masong Park is nearby, providing a pleasant environment, and it is possible to commute to Masong Central Elementary School and Masong Middle and High Schools. Move-in will take place in early April, and jeonse listings are available around 230 million to 250 million KRW for the 84㎡ exclusive area.
Dongdaegu Haemoro Square West is located in Sinam-dong, Dong-gu, Daegu Metropolitan City. It consists of a total of 1,122 households with exclusive areas ranging from 51 to 112㎡. Move-in is scheduled to start around the end of April.
Meanwhile, attention is focused on whether the pre-sale rights trading market will regain momentum as the restrictions on resale are eased from the end of this month. According to the Ministry of Land, Infrastructure and Transport, the amendment to the Housing Act Enforcement Decree, which focuses on easing restrictions on resale of pre-sale rights, passed the vice-ministerial meeting on the 24th. Accordingly, in the metropolitan area, the restriction period is eased to 3 years for public land (subject to price ceiling system) and regulated areas, 1 year for the overconcentration control zone including all of Seoul, and 6 months for other areas. For non-metropolitan public land (subject to price ceiling system), the restriction is eased to 1 year, 6 months for metropolitan city urban areas, and abolished for other areas. The amendment applies retroactively to apartments already sold before the amendment.
Ham Young-jin, head of Zigbang Big Data Lab, said, "Since the amended enforcement decree is applied retroactively to previously sold complexes, a significant number of pre-sale rights listings are expected to be released into the market," adding, "Pre-sale rights have merits such as lower initial financial burden and the ability to purchase new apartments without a subscription savings account, so it is worth watching whether the pre-sale rights trading market will regain momentum."
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