A 39% Decrease Compared to the Same Period Last Year
About 50,000 Households to Move into the Seoul Metropolitan Area
The number of new apartment units scheduled for occupancy in the second half of this year is expected to decrease by approximately 29% compared to the first half. As demand surges ahead of the implementation of the third phase of the stress total debt service ratio (DSR) regulation next month, and with the supply of new apartment units also shrinking, upward pressure on apartment prices is anticipated.
According to a survey by the real estate platform Zigbang on June 23, a total of 100,323 units are expected to be ready for occupancy in the second half of this year. This represents a decrease of 29% compared to the first half of this year (140,537 units) and a 39% drop compared to the same period last year (163,977 units).
By region, the Seoul metropolitan area is expected to see 52,828 units become available, a 12% decrease from the first half. In Seoul, 14,043 units are scheduled for occupancy, while Gyeonggi Province and Incheon will see 30,379 units and 8,406 units, respectively. While Gyeonggi Province will maintain a similar supply level to the first half, both Seoul and Incheon will experience a reduction in supply by 20% and 27%, respectively, compared to the first half.
In Seoul, the supply by district will be as follows: Dongdaemun-gu with 4,169 units, Songpa-gu with 2,727 units, Seongdong-gu with 1,882 units, and Gangnam-gu with 1,584 units. In particular, large-scale complexes at redevelopment sites where maintenance projects have been completed will begin occupancy. In Dongdaemun-gu, Imun IPark Xi (4,169 units), redeveloped from Imun District 3, will begin occupancy. In Songpa-gu, Jamsil Raemian IPark (2,678 units) will open its doors, while in key areas of Gangnam and Seocho, high-end new complexes such as Cheongdam L'Elysee (1,261 units) and Raemian One Perla (1,097 units) are also scheduled for occupancy.
In Gyeonggi Province, new apartments will be ready for occupancy in areas such as Pyeongtaek (6,949 units), Gwangmyeong (5,542 units), Hwaseong (3,319 units), and Ilsandong-gu in Goyang (2,090 units).
In regions outside the metropolitan area, the supply is expected to decrease significantly compared to the first half. A total of 47,495 units are scheduled for occupancy in the second half, a 41% decrease from the first half (80,215 units). The reduction in supply is expected to be especially pronounced in areas such as Daejeon and South Gyeongsang Province, which had previously seen a high number of new units. By region, Daegu will see 7,467 units, North Chungcheong Province 7,063 units, South Chungcheong Province 5,430 units, North Jeolla Province 4,838 units, North Gyeongsang Province 4,647 units, Gangwon Province 4,606 units, and South Gyeongsang Province 4,466 units.
A Zigbang representative stated, "Amid ongoing concerns about insufficient supply, the influx of last-minute demand ahead of next month's DSR regulation tightening has led to a sharp, short-term rise in apartment prices in Seoul this month. In this context, the reduction in the number of new units available for occupancy in the second half could become a burden not only for the rental market but also for the sales market."
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