Will 19,000 General Pre-Sale Units Be Released in the Seoul Metropolitan Area in August?... Can You Still Buy a Home Amid Loan Regulations? [Practical Investment]

Even Winning the Lottery Isn’t Enough Without Funds

Carefully Consider Loan Regulations Before Applying

As loan regulations continue, the ability to pay for a pre-sale apartment has become more important than simply winning the lottery. If you cannot secure funds for the progress and final payments, you may have to forfeit your contract even if you win. When looking at the number of new units, you should focus on the number of units available for general subscription, rather than the total number of apartments. After excluding units reserved for association members and rental housing, the actual number of subscription opportunities may be lower than expected.

68% in the Greater Seoul Area... General Pre-Sales in Seoul Are 'Rare'

According to a tally by RealToday, a real estate research firm, as of August nationwide, there are 47 apartment complexes scheduled for pre-sale, totaling 39,218 units. This figure includes rentals but excludes officetels. Of these, 27,482 units will be made available to the general applicant pool. Compared to 9,831 units in July, the number has increased by 2.8 times. It is also about three times higher than the 8,890 units offered in August of last year. Notably, 68% of the general pre-sale units—18,680 in total—are located in the Greater Seoul area.

By region, there are 11,912 units in Gyeonggi, 3,679 in Incheon, and 3,089 in Seoul. In city center areas like Seoul and Incheon, where redevelopment and reconstruction projects are common, association members tend to claim the most preferred units first, and the remaining are allocated for general sales. As a result, even mammoth projects like “Banpo DH Class-T” in Seocho-gu, Seoul, with a total size of 5,002 units, are only distributing 1,832 units for general sale.

Other major upcoming complexes in Seoul have few units reserved for general sale—often just a double-digit figure or around 100 units. For example, at “Junghwa Station Raon Private Centro” in Jungnang-gu, out of 176 total units, 113 will be put up for general sale. At “Ssangyong The Platinum Seodaemun” in Seodaemun-gu, 62 out of 177 units are for general sale. At “Brownstone Mokdong” in Yangcheon-gu, only 29 of the 85 total units are open to general sale.

Large-Scale Complexes in Gyeonggi and Incheon... 8,802 Units in Non-Metropolitan Regions

In Gyeonggi, the “Hangang Prugio Riverfront” project in Gimpo will put 2,432 units up for general sale. This mixed-use complex in Hangang Cinepolis, Gochon-eup, Gimpo, consists of units with exclusive floor areas of 84, 106, 122, and 180 square meters. Among them, the 84㎡ units account for 1,775 units or about 73%. While the pre-sale price ceiling system applies, there are also mid to large-sized units, so buyers need to check both the prices and loan limits for each type. At “Sangdong Station Lotte Castle Signature” in Bucheon, there will be 1,859 general sale units with exclusive areas from 84 to 192㎡. Built on the former Homeplus site near Sangdong Station on subway line 7, 1,370 of these, or 74%, are 84㎡ units. At “Hwaseo Station Lake Park Honorsville” in Suwon, 476 units with exclusive areas of 84–99㎡ are planned.

In Incheon, “City OCL District 9 Ocean Park View” in Michuhol-gu will supply 1,949 units with exclusive areas ranging from 59–136㎡ across nine buildings, reaching up to 49 stories. In Bupyeong-gu, at “Sanggok Station Xi Hillstate & Haneulchae,” out of a total of 2,706 units, 1,289 units (exclusive 50–84㎡) will be available for general sale. “Geomam Station Prugio Pravenue” in Seohae-gu is a private-participation public pre-sale apartment complex offering 441 units with exclusive areas of 60–84㎡, under the pre-sale price ceiling system. Of these, 75% will be reserved for special supply—targeting newlyweds, first-time buyers, and new parents. General supply for those not qualifying for the special categories makes up 25% of the total.

It is important to note that “general pre-sale” and “general supply” have different meanings. General pre-sale refers to all units for sale after excluding association members’ allocations and rentals—it includes both special and general supply. The number of units you should check as a regular subscription applicant is the general supply, which excludes units provisioned for special supply categories.

In non-metropolitan regions, there are 8,802 units available for general pre-sale, accounting for 32% of the nationwide total. In Sejong, “Sejong Umi Lin Center Park” will be located in zone S1 of the 5-2 living area, consisting of 676 units from B2 to the 20th floor, with exclusive areas of 45–84㎡. In Buk-gu, Gwangju Metropolitan City, “Cheomdan District 3, A6 Block, Jeil Punggyeongchae” is preparing to offer 638 units—mid to large sized (84–129㎡) and subject to the pre-sale price ceiling, with move-in scheduled for May 2029. In Nam-gu, Busan, “Doosan We've the Zenith Daeyeon” plans to make 176 of its 258 units (exclusive 59–84㎡) available for general sale.

Reduced Loan Limits and Higher Interest Rates... Hidden Costs Must Be Considered

For homes in the capital area or designated regulated zones, the maximum mortgage loan depends on the market value: up to 600 million won for properties under 1.5 billion won, 400 million won for those between 1.5 billion and 2.5 billion won, and 200 million won for homes exceeding 2.5 billion won. This amount is the loan cap, but the actual limit can be lower after applying the loan-to-value (LTV) ratio and the debt service ratio (DSR, which is the ratio of all loan repayments to income). The loan limit may also vary across banks, some of which raise their own thresholds to control their annual lending volume. For instance, KB Kookmin Bank recently lowered its mortgage loan limit for home purchases from 600 million won to 300 million won. It is recommended to check the actual borrowing limit with your bank before applying for pre-sale.

There is also a 3% “stress test” interest rate applied to mortgages in the Seoul area and regulated regions. This does not mean an extra 3 percentage points are added to the actual interest rate. It is a system in which banks use a notional higher interest rate when calculating DSR to estimate what your repayment capacity would be if rates were to rise in the future. As a result, the amount you can borrow may be less than expected, even if the current rate is lower.

It's also important to distinguish between progress payment loans and final payment loans. Although the caps by home price do not apply to progress payment loans, they do apply if you convert to a final payment loan. Even with prior approval for a progress payment loan, your eligibility for a final payment loan could be reduced depending on your income, existing debt, and tightened loan regulations at the time you move in.

The base rate should also be considered in your financial planning. The Bank of Korea raised its base rate by 0.25 percentage points from 2.50% to 2.75% on July 16. For a 400 million won loan repaid over 30 years on an amortized basis, a 4% annual interest rate means a monthly payment of about 1.91 million won. If the rate rises to 4.25%, the monthly payment becomes about 1.97 million won—an increase of roughly 60,000 won per month and 20.92 million won in interest over 30 years.

It’s difficult to estimate the actual amount needed when buying an apartment purely by looking at the pre-sale price. You must also factor in expenses for balcony extensions, optional upgrades, acquisition and registration taxes, progress payment interest, and relocation costs. The total cost, including these incidental expenses, can be compared to the actual transaction prices of similar-sized, relatively newer apartments in the area.

The government is preparing to ease restrictions on final payment loans for new apartments targeting young people, newlyweds, and first-time homebuyers. The new measures could be announced as early as this month, so it is advisable to check details before making a decision if you qualify. An official at RealToday said, "With government policy announcements expected soon—based on recent real estate policy discussions—a wait-and-see sentiment is gaining traction in the market. Given the planned surge of major branded apartment launches in core areas, buyer interest is expected to remain steady."

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