Is the Supply Drought Finally Over?... 4,100 Seoul Apartments to Hit the Market in May

1,736 General Sale Units?Three Times the Past Four Months' Supply
Major Brands Like Hillstate and Prugio Launch Large-Scale Projects
Buying Sentiment Hits 7-Month High... Fierce Competition for Applications Expected

As apartment buying sentiment in Seoul has reached its highest level in seven months, the virtually stagnant private housing supply in Seoul is expected to surge in May alone, with over 4,100 units set to be released. Given that supply has been at a "parched land" level for the past several months, this round of sales is seen as a signal marking a turning point in the market.

Hillstate Mediale Rendering. Provided by Hyundai Construction.

According to data received on April 26 from real estate research firm RealToday, a total of four apartment complexes are scheduled for sale in Seoul next month, amounting to 4,111 units. Of these, 1,736 units are available for general sale. The four complexes set to be released are: "Gocheok Prugio Hillstate" in Guro-gu, "Hillstate Mediale" in Eunpyeong-gu, "The Ateon" in Gangdong-gu, and "Godeok Gangil Daeseong Verhill" in Gangdong-gu.

The 1,736 general sale units to be supplied in May alone are about three times the total supplied over the past four months. Previously, in February, 482 units at "One Perla" in Banpo-dong, Seocho-gu were offered for general sale, and at the end of this month, 97 units at "Cheonggye Norway Forest" in Yongdu-dong, Dongdaemun-gu are scheduled for general sale. In the Seoul area, only 579 general sale units were supplied from January to April, resulting in a "supply drought." In fact, there were zero general sale units in both January and March.

First, "Hillstate Mediale" in Daejo-dong, Eunpyeong-gu is an apartment complex redeveloped from Daejo District 1. It will consist of 28 buildings, ranging from four basement levels to up to 25 stories above ground, with a total of 2,451 units. Of these, 483 units will be available for general sale, all of which are small to mid-sized units with exclusive areas of 51, 59, and 74 square meters. The complex is located near Yeonsinnae Station, which is served by the GTX-A line and Seoul Metro Lines 3 and 6. Its community features a combination of medical and cultural facilities, which is also a key advantage.

"Gocheok Prugio Hillstate" in Gocheok-dong, Guro-gu is a redevelopment project for Gocheok District 4, constructed by a consortium of Daewoo Engineering & Construction and Hyundai Engineering. Out of a total of 983 units, 576 will be available for general sale. The complex consists of 10 buildings, with three basement levels and up to 25 stories above ground. The general sale units are 59 and 84 square meters in exclusive area. Guro Station on Seoul Metro Line 1 is within walking distance. Nearby are Costco and Gocheok Sky Dome, and the "Mokdong Academy District," one of Seoul's three major private education hubs, is also close by.

"Godeok Gangil Daeseong Verhill" in the Godeok Gangil District of Gangdong-gu is the last private housing complex in Godeok Gangil District 3 to be offered under the "price ceiling system." DS General Construction and Daeseong Verhill Construction are jointly responsible for construction. All 613 units will be available for general sale, and the layouts are mid to large-sized at 84 and 101 square meters. The complex benefits from the planned GTX-B line and is within walking distance of Gangil Station on Seoul Metro Line 5. Sangil IC and Gangil IC are nearby, providing convenient vehicle access to various road networks.

"The Ateon" in Gil-dong, Gangdong-gu will offer all 64 of its units for general sale. The complex consists of a single type of unit, 59 square meters in exclusive area, in a building with two basement levels and up to 17 stories above ground. Gubeundari Station on Seoul Metro Line 5 is within walking distance. Large shopping facilities such as Hyundai Department Store, Emart, and Homeplus are also nearby. Gil-dong Ecological Park is within walking distance, providing a "green belt" advantage. In addition, the area is emerging as a beneficiary of Gangdong-gu's recently announced "Gil-dong Station to Myeongil Station" mixed-use development plan. Able PNG is in charge of both development and construction.

Except for "Godeok Gangil Daeseong Verhill," whose schedule has not yet been finalized, the other three complexes ("Gocheok Prugio Hillstate," "Hillstate Mediale," and "The Ateon") are scheduled to announce their recruitment notices on May 8-9. Applications will be accepted on May 19 and 20, and winners will be announced on May 27. Given the recent shortage of new apartments and strong buying sentiment in Seoul, competition for applications is expected to be intense. According to the "March Real Estate Consumer Sentiment Index" released by the Korea Research Institute for Human Settlements, the consumer sentiment index for Seoul's housing sales market last month was 136.1, the highest level in seven months since August last year. The sentiment index is classified as rising if it is 115 or higher, falling if below 95, and stable if between 95 and 115.

Park Won-gap, Chief Real Estate Expert at KB Kookmin Bank, said, "With some political uncertainty resolved, previously delayed apartment sales in Seoul are now starting. Given the ongoing supply drought and the persistent preference for Eoljuksin (meaning 'new construction even if it freezes you'), competition for applications will remain fierce."