Last month, the number of unsold houses after completion, known as 'malignant unsold housing,' increased by more than 10%, surpassing 14,000 nationwide. Unsold houses after completion impose financial burdens on construction companies, and the nearly year-long increase has heightened concerns. The total number of unsold houses also exceeded 70,000 for three consecutive months. Meanwhile, apartment transactions in Seoul exceeded 6,000 units, marking the highest volume in 3 years and 6 months.
Malignant Unsold Housing Approaches 15,000 Units... Construction Starts and Sales Increase Year-on-Year
According to the 'June Housing Statistics' released by the Ministry of Land, Infrastructure and Transport on the 31st, the number of unsold houses after completion nationwide last month was 14,856 units, a 12.3% increase from the previous month (13,230 units). This number has been rising for 11 consecutive months since August last year.
In the metropolitan area, unsold houses after completion numbered 2,891 units, a 19.3% increase from the previous month. Seoul saw a slight decrease of 2.4% (13 units) to 526 units, but Gyeonggi Province surged by 38.3% (489 units). In the provinces, unsold houses after completion increased by 10.7% (1,159 units) from 10,806 to 11,965 units. Gyeongnam had the highest number at 1,771 units, and Ulsan showed an overwhelming increase rate of 253.4%.
The total number of unsold houses last month was 74,037 units, marking an increase for seven consecutive months. Since April (71,997 units), the figure has remained above 70,000 units for three consecutive months. In the metropolitan area, Seoul's unsold houses slightly decreased from 974 units to 959 units, but Gyeonggi Province increased by 12.2% from 8,876 to 9,956 units, the highest nationwide. During the same period, the provinces recorded 58,986 units, a 2.8% (1,618 units) increase, accounting for 79.7% of the total unsold houses. Gangwon Province showed a notable increase of 30.3% from 3,639 to 4,740 units. Daegu's unsold houses increased by 2.2% (205 units) to 9,738 units.
In January this year, the government decided to exclude provincial unsold houses from the housing count for tax purposes when purchased for the first time. In March, it revived corporate restructuring (CR) REITs for purchasing provincial unsold houses after 10 years, offering benefits such as exemption from acquisition tax surcharges. However, unsold houses continue to increase amid the ongoing real estate market downturn.
The number of housing permits, a leading indicator of housing supply, was 23,886 units last month, a 1.7% increase from the previous month (23,492 units). The metropolitan area (8,998 units) decreased by 7.0%, but the provinces (14,888 units) increased by 7.8%. However, the cumulative performance for the first half of the year (January to June) was 149,860 units, a 26.1% decrease compared to the same period last year.
Housing starts increased by 19.4% to 20,712 units from 17,340 units the previous month. The cumulative performance for the first half of the year was also up 30.4% to 127,249 units compared to the same period last year. Both sales and completions in June increased simultaneously. Sales rose by 7.3% to 21,655 units, and completions increased by 22.0% to 35,922 units.
Seoul Apartment Transactions Highest in 3 Years and 6 Months
Housing transactions decreased for two consecutive months. The number of housing sales transactions in June (based on the reporting date) was 55,760, down 2.9% from the previous month. However, it increased by 6.0% compared to the same month last year. The cumulative transaction volume for the first half of the year (310,751 units) also rose by 13.2% compared to the same period last year.
By region, the metropolitan area (28,703 units) increased by 4.0% from the previous month, while the provinces (27,057 units) decreased by 9.3%. By type, apartment transactions (43,300 units) increased slightly by 0.1% from the previous month, but non-apartment housing (12,460 units) decreased by 12.0%.
Notably, apartment transactions in Seoul reached 6,150 units, an 18.7% increase from the previous month and a 48.7% increase compared to the same month last year. This marks the sixth consecutive month of monthly transaction increases and the highest volume in 3 years and 6 months since December 2020 (8,764 units).
Last month, the volume of monthly rental and jeonse (long-term deposit lease) transactions was 192,738, down 15.4% from the previous month. It also decreased by 9.6% compared to the same month last year. Jeonse transactions (84,564 units) fell by 13.7% compared to the same month last year, and monthly rental transactions (108,174 units) decreased by 6.2%. In the cumulative total for January to June this year, monthly rentals accounted for 57.5%, up 2.3 percentage points from the same period last year.
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