Only 42% of 'Scheduled for Sale' Apartments Actually Sold... Psychological Contraction and Schedule Adjustments

Yonhap News

Last month, the apartment sales performance rate was recorded at 42%, falling short of half.

Real estate platform Zigbang announced on the 4th that the total number of units scheduled for sale in February, as surveyed on January 31, was 12,676 units. However, when re-surveyed on the 27th of last month, the actual number of units sold was 5,385, resulting in a supply performance rate of 42%.

The reason the sales performance rate remained at 42% is attributed to the continued uncertainty in the real estate market. Zigbang explained, "Buyers' subscription sentiment has weakened, and construction companies, concerned about this, have adjusted their sales schedules more cautiously. As a result, despite a decrease in the number of units scheduled for supply compared to the previous year, the performance rate also fell short of expectations, showing poor results."

This month's scheduled supply volume was surveyed at 26 complexes, totaling 24,880 units. Of these, 18,596 units are in the metropolitan area and 6,284 units in non-metropolitan areas. However, there are no scheduled sales projects in Seoul within the metropolitan area. Gyeonggi Province has 14,416 units planned, and Incheon has 4,180 units. In non-metropolitan areas, the order is ▲Gyeongnam 2,638 units ▲Busan 1,667 units ▲Gyeongbuk 999 units ▲Gangwon 508 units ▲Daegu 472 units.

Looking at individual complexes, large-scale branded complexes are scheduled for sale. In the Gyeonggi area, Goyang The Sharp Forena in Jugyo-dong, Deogyang-gu, Goyang City, with 2,601 units, and Yongin Prugio One Cluster 2 Complex in Cheoin-gu, Yongin City, with 1,804 units, are scheduled for sale. In Incheon, City OCEEL 7 Complex in Hakik-dong, Michuhol-gu, with 1,453 units, and Sangok District Hyosung Harrington Place in Sangok-dong, Bupyeong-gu, with 2,475 units, are scheduled for sale.

In non-metropolitan areas, Changwon Mega City Xi·We’ve in Yeoja-dong, Jinhae-gu, Changwon City, with 2,638 units, and Eco Delta City Atera in Gangdong-dong, Gangseo-gu, Busan, with 1,025 units, are preparing for sales this month.

March is traditionally the "spring sales" season, but there are forecasts that performance may not meet expectations depending on market sentiment. Zigbang noted that although the government announced a policy for the Korea Land and Housing Corporation (LH) to purchase unsold units in local areas as a measure to resolve unsold inventories, it is expected to have limitations in quickly reversing the overall demand contraction in the market. Previously, to help recover the local real estate market, LH announced it would directly purchase 3,000 unsold apartments completed in local areas at prices lower than the sale price.

Zigbang stated, "As economic uncertainty continues, buyers' subscription sentiment remains subdued, and construction companies are likely to continue cautious sales strategies. The polarization of subscription results by complex is expected to become more pronounced."

They added, "Although the recent base interest rate cut is expected to somewhat ease loan burdens, its impact on the market is likely to be limited. This is because the interest rate cut is unlikely to immediately lead to a recovery in housing demand, and a wait-and-see stance is expected to persist for the time being."