- Housing supply halved with a 42.3% decrease compared to last year, permits also plummet by 38.8%
- Construction starts and completions decline, making housing price increases ultimately inevitable...
As the recent housing supply shortage approaches rapidly, making a rise in house prices inevitable, the psychology of buyers rushing to secure their homes before prices increase further is stimulating demand. According to the housing statistics for August announced by the Ministry of Land, Infrastructure and Transport on September 26, the cumulative nationwide apartment sales in August amounted to 94,449 units, a 42.3% decrease compared to 163,714 units in the same period last year. In the metropolitan area, the figure was 52,126 units, down 28.7% year-on-year, while in the provinces, it was 42,323 units, down 53.3% year-on-year.
Housing permits also sharply declined. The cumulative nationwide housing permits as of August totaled 212,757 units, a 38.8% decrease compared to 347,458 units in the same period last year. By type, apartment permits were 180,207 units, down 36.3%, while permits for non-apartment housing were 32,550 units, down 49.7%.
Moreover, with starts (down 56.4%) and completions (down 7.6%) also decreasing, concerns over housing supply have grown, leading to an increase in housing sales transactions. The number of housing sales transactions in August (based on reporting date) totaled 51,578, a 7.1% increase from 48,170 in the previous month and a 45.2% increase compared to 35,531 in the same month last year. In the metropolitan area, transactions reached 23,277 units, up 67.7% year-on-year.
A real estate expert stated, “As housing sales volumes, permits, starts, and completions have all significantly decreased, anxiety over the housing supply shortage is driving active housing transactions. Due to the decrease in supply and increase in transaction volume, it is inevitable that house prices will rise because of the housing supply shortage.”
In this context, Xi S&D’s (Xi S&D) ‘Gwacheon Xi Ella Edition’ officetel officially opened on October 6 and began full-scale sales, attracting much attention. During the subscription period held on Wednesday, October 11, it recorded a highest competition rate of 8.25:1 and an average competition rate of 3.73:1, drawing interest. The announcement of winners is scheduled for today, Monday, October 16, with contracts to be signed the following day, Tuesday, October 17.
‘Gwacheon Xi Ella Edition’ is a complex located in Galhyeon-dong, Gwacheon-si, Gyeonggi-do, consisting of four basement floors to ten above-ground floors. The officetel units will be located on floors 4 through 10 of the complex, comprising a total of 98 units with 19 different floor plans ranging from 82m² to 103m² in exclusive area.
Additionally, it boasts an excellent location at the center of Gwacheon Knowledge Information Town, near the planned Gwacheon Information Town Station, Gwacheon-daero, the Second Gyeongin Expressway, and the planned GTX-C line, providing fast metropolitan transportation networks. It also offers abundant living infrastructure within the designated town. Nearby, 118 companies related to future industries (including promising new technologies, the 4th industrial revolution, and 19 future growth engine technologies), including 116 excellent companies and 2 university-industry cooperation groups, are scheduled to move in, ensuring excellent proximity between residence and workplace. In fact, the major game developer Pearl Abyss has already completed its move-in, and large corporations such as Netmarble, Hana Financial Investment, Anguk Pharmaceuticals, and Kyungdong Pharmaceutical are either in the process of moving in or have completed it.
The ‘Gwacheon Xi Ella Edition’ officetel features various specialized designs such as terraces and lofts (in some units), and residential customized space designs like 3Bay and 4Bay layouts. It also introduces a fully furnished built-in system providing essential home appliances and furniture, including a 4-door Objet refrigerator, a wash tower, and a final kitchen. Financial benefits include a down payment of 10 million KRW (first installment), immediate resale possible upon contract, and full interest-free payments for intermediate payments.
The model house for ‘Gwacheon Xi Ella Edition’ is located on Beolmal-ro, Dongan-gu, Anyang-si, Gyeonggi-do.
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