Housing Supply Decreases, New Home Scarcity Rises: Interest in Uiwang Centline Desiang

- Nationwide Housing Permits Plunge 32% Year-on-Year Through September
- Expected to Decline Further... Priority Should Be Given to Areas with Ongoing Sales

Recently, the number of newly supplied houses has been decreasing due to the burden of rising interest rates and market deterioration. Moreover, with future supply becoming even more difficult and housing permits declining, there are forecasts that house prices will actually rise due to the law of supply and demand. As a result, there is a noticeable movement to secure units in complexes currently on the market.

According to data from the Ministry of Land, Infrastructure and Transport, housing-related construction starts, permits, and completions have all sharply declined this year. Construction starts have been cut in half, and permits have dropped by more than 30%. According to the housing statistics released by the Ministry on October 31 for September, the total number of housing permits nationwide up to September this year was 255,871 units, a 32.7% decrease compared to the same period last year.

In the metropolitan area, permits were 100,295 units, down 22.6%, while in provincial areas, permits fell 38.1% to 153,776 units. Among these, apartment permits were 219,858 units, down 29.6%, and non-apartment housing permits were 36,013 units, a 47.0% decrease. Notably, in September alone, apartment permits in Seoul were only 140 units, a sharp 86.4% drop compared to the same period last year.

Construction starts up to September totaled 125,862 units, down 57.2% year-on-year, effectively halving. Metropolitan area construction starts were 60,250 units, down 59.6%, and provincial starts were 65,612 units, down 54.7%. Nationwide apartment construction starts were 95,226 units, a 58.1% decrease.

Pre-sale volumes also sharply declined. Cumulative pre-sales of multi-family housing (30 units or more) nationwide up to September were 108,710 units, down 42.2% compared to the same period last year. The metropolitan area saw 59,488 units, down 25.9%, while provincial areas dropped 54.4% to 49,222 units.

This is due to rising raw material prices making housing supply difficult. Project stakeholders are deeply concerned. The basic construction cost has been raised three times this year, and overall construction costs, including building materials and labor, have surged significantly, pushing construction costs to more than half of the pre-sale price. According to construction industry insiders, it is difficult to fully reflect the increased construction costs in the pre-sale price because doing so would raise the pre-sale price too high, increasing the risk of unsold units.

An industry expert said, “In the current real estate market where supply is decreasing and pre-sale prices are only set to rise, buyers considering purchasing a home should secure their units before it’s too late. Especially if considering a new apartment rather than an existing home, the law of supply and demand may cause polarization between old and new buildings, so securing a unit early is essential.”

Accordingly, there is strong interest from buyers in complexes currently on sale. Particularly notable is the ‘Uiwang Centline Desiang’ constructed by Taeyoung Construction, located right in front of the planned Ojeon Station on the Indeokwon-Dongtan Line (Indong Line), allowing buyers to secure a premium. The design, fitting the Desiang brand, is also receiving favorable reviews.

A sales representative stated, “Buyers can secure the transportation benefits of the Indong Line at the closest point, and with excellent education, living environment, and product quality, we are putting our utmost effort into creating the best apartment where residents can take pride in living.” They added, “Since the model house opened, customer reviews have been positive, and visits from both actual buyers and investors from across the metropolitan area continue, so contracts are expected to proceed smoothly.”

Meanwhile, Uiwang Centline Desiang is being introduced through the Ojeon ‘Na’ district redevelopment, consisting of five buildings from two basement floors to 38 floors above ground, totaling 733 units. Among these, 532 units with exclusive areas ranging from 37 to 98 square meters are available for general sale. The first priority application recorded a high interest rate of up to 11.4 to 1 (59㎡A).

Document submission for winners and prospective residents will take place from November 21 to 26 at the model house near the project site. During this period, an event will be held to give Starbucks cards to customers who submit documents.