In June, approximately 26,000 apartment units will be offered for pre-sale nationwide. With the implementation of the third phase of the stress-based Debt Service Ratio (DSR) regulation scheduled for next month, it is expected that selective demand for subscriptions will concentrate on preferred locations, particularly in the Seoul metropolitan area.
According to real estate platform Zigbang on June 2, the total number of apartment units scheduled for pre-sale this month is 26,407, representing an increase of about 39% compared to the same month last year (18,969 units). Of these, general pre-sale units are estimated at around 21,550.
By region, the Seoul metropolitan area will see 13,865 units, while non-metropolitan areas will have 12,542 units. In the metropolitan area, Gyeonggi Province will supply 10,295 units, Seoul 1,865 units, and Incheon 1,705 units.
In Gyeonggi Province, large-scale pre-sales of around 1,000 units are concentrated. These include 997 units at 'Cluster Yongin Gyeongnam Honorsville' in Yangji-myeon, Cheoin-gu, Yongin; 869 units at 'Goyang Janghang S1' in Janghang-dong, Ilsandong-gu, Goyang; and 1,215 units at 'Brain City 6BL Rosebiang Moa Elga' in Jangan-dong, Pyeongtaek. In Incheon, 'Cheongna Peak One Prugio (B1)' in Cheongna-dong, Seo-gu, is expected to supply 1,056 units.
In Seoul, only 'Jamsil Le El' in Sincheon-dong, Songpa-gu, is scheduled for pre-sale this month. 'Jamsil Le El' is a redevelopment of the former Jinju Apartment complex, and out of a total of 1,865 units, 219 will be available for general pre-sale. The site is close to Olympic Park and the Han River, and is well-equipped with living and transportation infrastructure in the Jamsil area. The pre-sale is scheduled for the end of this month.
In non-metropolitan areas, supply will be as follows: Busan 4,552 units, North Chungcheong 2,098 units, Daegu 1,419 units, South Gyeongsang 1,276 units, South Chungcheong 1,238 units, Gangwon 987 units, Daejeon 509 units, and North Gyeongsang 463 units. Notably, large-scale complexes are scheduled for pre-sale in major provincial cities, such as 842 units at 'Yangsan Xi Park Felice' in Pyeongsan-dong, Yangsan, South Gyeongsang; 2,070 units at 'Le El River Park Centum' in Jaesong-dong, Haeundae-gu, Busan; and 1,370 units at 'Eco Delta City Prugio Trepark' in Gangdong-dong, Gangseo-gu, Busan.
The market expects that, since the third phase of the stress-based DSR regulation will not apply to June pre-sales, demand for subscriptions will be concentrated on preferred complexes in the metropolitan area. A Zigbang representative explained, "The June pre-sale market is expected to maintain a certain level of subscription activity, mainly in the metropolitan area and some major cities. Although the third phase of the DSR regulation will be applied to final payment loans starting in July, it is based on the date of the resident recruitment announcement. Therefore, the regulation will not apply to complexes pre-sold in June, and selective interest from buyers seeking to purchase before the regulation takes effect may continue."
However, it is expected that the effects of a benchmark interest rate cut will take some time to be reflected in the market. The Zigbang representative added, "The Bank of Korea's decision to cut the benchmark interest rate may act as a psychological positive factor in the market. However, most group loans, such as interim payment loans, have their interest rates fixed at the time of pre-sale, and there is a time lag before the effects of the rate cut are reflected in actual loan rates. As a result, the impact on liquidity may be limited." The representative also said, "Rather than seeing a rapid expansion in subscription demand in the short term, it is more likely that selective demand will continue to focus on preferred locations, such as the metropolitan area."
Meanwhile, in the May apartment pre-sale market, as of May 28, 12,402 units out of the 17,176 units scheduled for pre-sale had been sold, resulting in a pre-sale performance rate of 72%.
Subscription performance improved compared to the previous month. The nationwide average subscription competition ratio for first-priority applicants last month was 14.8 to 1, more than three times higher than April's 4 to 1. This was attributed to major complexes in the metropolitan area recording double-digit competition ratios, with the 'Dongtan Fore Park Jayeon & Prugio' private housing supply in Hwaseong, Gyeonggi, recording the highest competition ratio at 75.13 to 1.
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