It Will Take 3 More Months Until Move-In for This Year's 'Bunyang Apartments' [Real Estate AtoZ]

Analysis of Move-in Periods for Metropolitan Area Housing Complexes from January to July This Year
Metropolitan Area (33 months → 36 months), Seoul (29 months → 30 months)
Gyeonggi (34 months → 36 months), Incheon (35 months → 39 months)
"Impact of Safety and Environmental Regulations, Skilled Labor Shortage, and Rising Labor Costs"

This year, the average period from apartment pre-sale to move-in in the Seoul metropolitan area was found to be three years. As the construction period for apartments has lengthened, the time taken until move-in has increased by about three months compared to last year. In some complexes, the period until move-in exceeded 40 months.

Seoul Metropolitan Area Apartment Pre-sale to Move-in Period Extends from 33 Months to 36 Months... "Strict Working Hour Management and Irregular Weather Impact"

On the 30th, Asia Economy conducted a full survey of apartment pre-sale announcements from January to July this year in Seoul, Gyeonggi, and Incheon, referencing the Korea Real Estate Board's subscription home data. The period from pre-sale to move-in (scheduled date) was 36 months, an increase of three months compared to the same period last year (33 months). By region, the construction period was longer than last year in Seoul (29 months → 30 months), Gyeonggi (34 months → 36 months), and Incheon (35 months → 39 months). This period excludes post-sale complexes and canceled units by association members.

The period until move-in increased further for large complexes with over 1,000 households. For large apartment complexes in the metropolitan area, this period was 39 months this year, four months longer than the same period last year (35 months). By region, it was Seoul (24 months → 31 months), Gyeonggi (37 months → 40 months), and Incheon (37 months → 42 months).

An official from a major construction company said, "Unlike in the past, the construction period has increased significantly. We strictly adhere to the working hours of on-site workers, so we cannot perform work outside the designated hours as before. Work cannot be done on rainy days either. However, these days, rain does not fall consistently, causing delays in work."

As the period from pre-sale to move-in lengthens, construction costs are rising, leading to higher pre-sale prices. The average pre-sale price per square meter for apartments sold in Seoul from January to July this year is about 16.4 million KRW, an increase of over 6 million KRW compared to the same period last year (approximately 10.34 million KRW).

During the same period, the average pre-sale price per square meter for apartments sold in Gyeonggi rose from about 5.54 million KRW to 6.45 million KRW. In Incheon, it increased from 5.21 million KRW to 5.96 million KRW.

More Than 20% of Pre-sale Complexes Take Over 40 Months Until Move-in... "Ultimately Leading to Price Increases"

Notably, about 27% of metropolitan area complexes pre-sold from January to July this year are expected to take more than 40 months until move-in. Among 63 complexes in Seoul, Incheon, and Gyeonggi, 10 in Gyeonggi and 7 in Incheon fall into this category. The proportion of metropolitan area complexes taking over 40 months until move-in increased by about 12 percentage points compared to the same period last year (15%).

The 'Goyang Janghang Kaibeu Ubora' complex, pre-sold this month, has a scheduled move-in date in July 2028, taking about 49 months until move-in. An official from the construction company Bando Construction, which is building this complex, explained, "The actual construction period is 50 months. The overall increase in construction periods recently, the fact that this is a large complex with 1,694 households, and that it is being built as a quasi-high-rise with 4 underground floors and 49 above-ground floors all contribute to this construction period."

When crossing the Banpo Bridge in Seoul, you can see new apartments, old apartments, and apartments under construction all at once in the Sinbanpo area. The new apartments on the left are Acro Riverview Sinbanpo, the low old apartments on the right are Sinbanpo 2nd Complex, and the apartments under construction in the back are the Maple Xi construction site. Photo by Huh Younghan younghan@

The pre-sale prices of complexes taking over 40 months from pre-sale to move-in were higher than those of complexes taking less than 40 months. Among complexes sold in Gyeonggi from January to July this year, the average pre-sale price per square meter for apartments taking over 40 months until move-in was about 7.52 million KRW. In contrast, the average pre-sale price per square meter for complexes taking less than 40 months until move-in was 6.12 million KRW.

In Incheon, among complexes sold this year, the average pre-sale price per square meter for apartments taking over 40 months until move-in was about 6.19 million KRW, approximately 480,000 KRW higher than the average of 5.7 million KRW for complexes taking less than 40 months (6 complexes).

The construction industry expects the period from pre-sale to move-in to lengthen further. Safety and environmental regulations have been strengthened, and labor costs have increased due to minimum wage hikes. Since the pandemic, there has also been a shortage of foreign skilled workers.

Another construction industry official said, "When building apartments, the goal is to finish construction one or two months before the scheduled move-in date, but as construction periods lengthen, some projects are setting longer periods from pre-sale to move-in."

Professor Choi Won-cheol of Hanyang University's Department of Architectural Engineering said, "It is becoming increasingly difficult for construction companies to accurately predict construction periods. Regulations such as the Serious Accident Punishment Act, green building standards, and inter-floor noise inspections have increased." He added, "In situations where construction inevitably takes longer, construction costs increase, and ultimately, pre-sale prices must rise as well."