Highest Monthly Housing Supply in June
Political Uncertainty Eases, Construction Companies Release Delayed Units
The number of housing units released for sale in June has reached the highest monthly level so far this year. As political uncertainty eased following the presidential election, construction companies have begun releasing previously delayed housing supply all at once.
According to Real Estate R114 on June 8, the total number of apartment units scheduled for sale nationwide this month is 26,005. This is the largest monthly supply this year, more than 1.5 times the previous month's figure of 17,000 units.
The planned supply in the Seoul metropolitan area is 16,389 units, an increase of over 1,000 units compared to last month’s 14,965 units. Notably, 86% of the metropolitan area supply?14,050 units?is concentrated in Gyeonggi Province. Seoul and Incheon are expected to see 677 units and 1,662 units supplied, respectively.
Major complexes include: Harrington Place Pungmu in Pungmu-dong, Gimpo, Gyeonggi Province (1,769 units); Opus Hangang Switzen in Gochon-eup, Gimpo, Gyeonggi Province (1,029 units); and Geomdan Junghung S-Class in Bullo-dong, Seo-gu, Incheon (1,010 units).
The planned supply in non-metropolitan regions is 9,616 units, with a relatively even distribution across regions. Busan is expected to see 3,412 units, while North Chungcheong Province and South Chungcheong Province will have 2,098 units and 1,238 units supplied, respectively. Major complexes include: Ecodelta City Prugio Trepark in Gangdong-dong, Gangseo-gu, Busan (1,370 units); Sinbunpyeong The Way City Jeil Punggyeongchae in Jangseong-dong, Seowon-gu, Cheongju, North Chungcheong Province (1,448 units); and Asan Tangjeong Xi Central City in Tangjeong-myeon, Asan, South Chungcheong Province (1,238 units).
As construction companies rush to release previously delayed housing supply, end-users will have a wider range of options for purchasing homes. Yoon Jihae, head of the Research Lab at Real Estate R114, stated, "The schedule for housing sales was delayed due to increased uncertainty, including the declaration of martial law in December last year and the impeachment ruling in April this year." However, she added, "With political uncertainty resolved by this month's presidential election results, construction companies are now releasing the previously delayed supply."
Meanwhile, demand for housing subscriptions is expected to be concentrated in the Seoul metropolitan area. From January to May, the nationwide cumulative competition rate for subscriptions was 8.39 to 1, while Seoul recorded 60.62 to 1, the metropolitan area 10.08 to 1, and non-metropolitan regions 7.01 to 1, highlighting a clear regional disparity.
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