[Real Estate Investment] Unusual Weather in the Pre-sale Market... Maximum Supply Floods the Off-Season July

Nationwide 47,150 Households... Half Located in the Seoul Metropolitan Area

A record volume of housing units is being released in July, traditionally an off-season for sales. This surge is due to the accumulation and postponement of supply caused by the first half by-elections and changes in the government and ruling party's real estate policies. Another factor is that construction companies hurried their sales schedules ahead of the 3rd New Town pre-sale.

According to online real estate platform Zigbang on the 7th, a total of 47,150 units nationwide (42,140 general sales units), including 4,333 units from the first pre-sale in the metropolitan area land this month, are scheduled for sale.

Compared to the average of 24,659 units sold during the spring sales season from March to May, nearly twice the volume is being released this month alone.

By region, about half of the 47,150 units, or 22,960 units, are being prepared for sale in the metropolitan area. Gyeonggi-do plans the largest supply with 15,608 units. Incheon is preparing 6,314 units, and Seoul is preparing 1,038 units for sale.

In Seoul, demand is expected to concentrate on DL E&C’s ‘ePyeonhansesang Gangil Urban Bridge’ located in 554-38 Sangil-dong, Gangdong-gu. The advantage is that all 593 units supplied on public land are general sales units. The units range from 84 to 101㎡ (exclusive area).

In Gyeonggi-do, ‘Hillstate Gwanggyo Jungang Station First’ in Iui-dong, Yeongtong-gu, Suwon-si, will be launched for sale this month. It consists of 211 units ranging from 60 to 84㎡.

In the provinces, where 24,190 units are being released, 4,752 units are scheduled in the Chungnam region. As the balloon effect of non-regulated areas continues this year and the average apartment sale price in the provinces is on the rise, it is expected that the sales enthusiasm will continue.

New supply is also being introduced after a long time in Sejong City’s administrative complex. The GS Construction consortium (GS Construction, Taeyoung Construction, Hanshin Engineering & Construction) is building ‘Sejong Xi The City’ in block L1 of the 6-3 living zone. It is a large complex with 1,350 units ranging from 84 to 154㎡.

The sales market in Gangneung, Gangwon-do, where housing prices have been soaring recently, is also noteworthy. Lotte Construction’s ‘Gangneung Lotte Castle Signature’ in Gyodong, Gangneung-si, is attracting attention as a large complex with 1,305 units.

Additionally, Daewoo Construction will sell 819 units of ‘Gumi Prugio Central Park’ in Goa-eup, Gumi-si, Gyeongbuk, and Hanwha Construction will sell 602 units of ‘Hanwha Forena Cheonan Sinbu’ in Sinbu-dong, Cheonan-si, Chungnam, both within this month.

Experts suggest that due to the balloon effect of government regulations, unexpectedly high subscription demand may occur in non-regulated areas. In non-regulated areas, there are either no resale restrictions or they last only six months.

In some places, if the subscription savings account has been held for more than six months (one year in the metropolitan area), first-priority subscription is possible regardless of whether the applicant is the head of the household or a household member. Another advantage is the large proportion of lottery-based units. In regulated areas, only 25% of small and medium-sized units under 85㎡ are supplied by lottery, but in non-regulated areas, lottery units account for 60%.

This content was produced with the assistance of AI translation services.