HUG designates Pyeongtaek as new unsold housing management area after 4 years and 10 months
Unsold units in Pyeongtaek reach 6,438... 18 times increase in one year, surpassing Busan
Delay in Samsung Electronics Pyeongtaek campus construction cited as main reason for surge in unsold units
Pyeongtaek City in Gyeonggi Province has been designated as a housing unsold management area again after 4 years and 10 months. It is a place where unsold housing units increased 18 times in one year.
According to the Housing and Urban Guarantee Corporation (HUG) on the 7th, the 98th unsold housing management areas were selected and announced the day before. Pyeongtaek was newly designated as an unsold housing management area. As a result, the number of unsold housing management areas increased from four to five. The existing four areas are Icheon (Gyeonggi), Sokcho (Gangwon), Gwangyang (Jeonnam), and Gyeongju (Gyeongbuk).
The number of unsold houses in Pyeongtaek as of January this year is 6,438 units. This is an 18-fold increase compared to 361 units in January last year. HUG designates cities, counties, and districts with more than 1,000 unsold units and where the ratio of unsold units to apartment inventory is 2% or higher as unsold housing management areas. Pyeongtaek was an unsold housing management area for about two years from May 2018 but was lifted in June 2020 as the real estate boom spread. However, it was designated again due to the recent increase in unsold units. The number is even higher than Busan, which has about five times the population, with 4,526 units.
As of January this year, the scale of unsold housing in Pyeongtaek accounts for 42.5% of all unsold housing in Gyeonggi Province. In January alone, unsold units in Pyeongtaek increased by 2,367 units. Within Gyeonggi, the next highest unsold units are in Icheon (1,873 units), Gwangju (899 units), and Yangju (730 units), respectively.
The main cause of the rapid increase in unsold units is attributed to delays in the construction of Samsung Electronics’ Pyeongtaek campus factory due to the semiconductor industry downturn. As a result, some complexes that held subscription applications at the end of last year recorded low competition rates. Apartment A near Brain City general industrial complex had only 94 applicants for 864 units, and Apartment B also had only 312 applicants for 1,933 units, resulting in undersubscription.
When designated as an unsold housing management area, HUG’s guarantee screening is strengthened. Developers must undergo a preliminary review before issuing sales guarantees. In addition, new housing supply is restricted to induce the resolution of unsold units.
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