Gwangju 'Unsold Units' Up 1,321% Compared to 5 Years Ago

HUG Unsold Units in Guaranteed Sale Projects Surge
Jung Junho: "Measures Needed to Protect Small and Medium Builders"

Assemblyman Jeong Junho

Recently, concerns have arisen that small and medium-sized construction companies could face a serious crisis as the number of unsold housing units in the Housing and Urban Guarantee Corporation (HUG)'s pre-sale guarantee projects has sharply increased.

According to data submitted by HUG for the National Assembly inspection on the 14th by Jeong Jun-ho, a member of the Democratic Party of Korea (Gwangju Buk-gu Gap), the number of unsold units nationwide has significantly increased mostly in provincial areas from 2019 to July of this year. In particular, the rapid increase in unsold units in recent years has intensified liquidity crises for construction companies and raised the possibility of large-scale pre-sale accidents.

Comparing the status and growth rate of unsold units by metropolitan city nationwide this year with 2019, Gwangju was the most severe, increasing from 499 units to 7,091 units, a staggering 1,321% increase. This was followed by Daejeon with 406→4,216 units (938%), Daegu 2,144→9,330 units (335%), Busan 2,045→5,958 units (191%), and Ulsan 1,264→3,366 units (166%).

The explosive increase in unsold units is occurring in conjunction with economic factors such as rising construction material costs, high inflation, and high oil prices. In this situation, the significant rise in unsold units centered on HUG's pre-sale guarantee projects is worsening the financial difficulties of the construction industry, and the possibility of large-scale pre-sale accidents beyond HUG's capacity cannot be ruled out.

Rep. Jeong emphasized, “The unsold housing issue is a serious phenomenon spreading nationwide, and urgent proactive measures are needed,” adding, “Starting with this year's National Assembly inspection, the government and the Ministry of Land, Infrastructure and Transport must do their utmost to prepare protection measures for small and medium-sized construction companies and policies to prevent unsold units.”