2024-07-17 10:37:31
As polarization in the subscription market has intensified recently, Seoul’s strength is clearly evident. The subscription competition rate has reached its highest level since 2021, and sales transactions have also increased significantly.
According to Real Estate R114 data, the average competition rate for first-round subscriptions in Seoul in the first half of this year was 105.8 to 1, which is 17 times higher than the national average of 6.2 to 1. This is the highest competition rate for each half-year since compilation began in 2000, excluding the 124.7 to 1 in the first half of 2021 and the 227.9 to 1 in the second half when the subscription market was overheated. This figure is more than double the 51.8 to 1 in the same period last year (January to June 2023).
As competition for subscriptions intensified, the number of transactions for apartment complexes listed on the list also increased. According to data from the Korea Real Estate Board, the number of apartment transactions in Seoul in May this year was 5,182, the highest monthly volume since February 2021.
The industry is analyzing that demanders are actively jumping into the market as concerns grow that there will be a shortage of housing supply in Seoul in the future and as the selling price is expected to continue to rise. This is because real estate indicators that can predict the amount of new housing supply in 2-3 years are rapidly decreasing.
According to Real Estate R114 data, a total of 22,435 new apartments (excluding rentals) are expected to be built in Seoul this year. This is a decrease of approximately 25.6% compared to the 31,520 new apartments built last year. In addition, according to data from the Ministry of Land, Infrastructure and Transport, the cumulative total of housing permits and construction starts in Seoul as of the end of May this year decreased by 35.6% from 16,357 to 10,530 and by 2.9% from 12,499 to 12,131, respectively, compared to the same period last year. As permits and construction starts, which are considered leading indicators of housing supply, decrease, the number of new apartments to be built in the future is also expected to decrease.
The rise in apartment sales prices also had an impact. According to the Korea Housing & Urban Guarantee Corporation (HUG), the nationwide apartment sales price in May this year was 18,394,200 won per 3.3㎡, up about 14% from 16,137,000 won in the same month last year. In particular, in Seoul, it rose about 24.4% from 31,066,200 won to 38,629,800 won during the same period.
An industry expert said, “The competition to subscribe seems to be heating up as the supply of housing in Seoul is not keeping up with the demand, and the preference for new construction is growing,” adding, “Since the cost of raw materials and construction labor is steadily increasing, the rise in selling prices is expected to continue in the second half of this year, so if you are planning to buy a home, you need to move quickly.”
Meanwhile, a new complex will be supplied in Seoul within the year. Daewoo Construction will conduct the first round of subscription applications for ‘Prugio Radius Park’, which will be unveiled in Jangwi-dong, Seongbuk-gu, on the 16th. This complex consists of 15 buildings with 3 underground floors and 33 above-ground floors, a total of 1,637 households, of which 718 households with exclusive areas of 59-84㎡ will be supplied as general sales. It is a double super-station complex located right in front of Seokgye Station on Subway Lines 1 and 6, making it convenient to travel to all of Seoul. There is a daycare center in the complex, as well as Seongok Elementary School and Gwangwoon Elementary School within a 450m radius, allowing safe commuting, and there are also schools within a 1km radius, including Namdaemun Middle School, Gwangwoon Middle School, Gwangwoon Artificial Intelligence High School, and Seokgwan High School.
GS E&C and Hyundai E&C are selling ‘Mapo Zai Hills State Rachels’ in Gongdeok-dong, Mapo-gu. This complex, supplied through the Gongdeok 1st District Housing Reconstruction Project, consists of 10 buildings with 4 underground floors and 13-22 above-ground floors, and a total of 1,101 households with exclusive areas of 59-114㎡, of which 463 households are for general sale. The complex is within walking distance of Aeoge Station on Subway Line 5, allowing commutes to Yeouido and Gwanghwamun business districts within 20 minutes. In addition, Gongdeok Station, a transfer station for Subway Lines 5 and 6, and Gyeongui-Jungang and Airport Railroads, is located one stop away, allowing convenient travel to all of Seoul. Each type of housing will provide ample storage space, such as a master bedroom dressing room and pantry, and Mapo-gu’s first sky lounge will be provided.
Samsung C&T plans to sell ‘Raemian Reventus’ in Dogok-dong, Gangnam-gu in July. This complex, which is being supplied through the Dogok Samho Apartment housing reconstruction project, will consist of 4 buildings with 3 underground floors and 18 floors above ground, with a total of 308 households, of which 133 households with exclusive areas of 45-84㎡ will be sold to the general public. The complex is within walking distance of Hanti Station on the Suin Bundang Line, and it is easy to move to Gangnam Business District and the entire Gangnam area. Dogok Middle School, Yeoksam Middle School, Dandae Middle and High School, Sookmyung Girls’ Middle and High School, Jungdae High School, and Eun Gwang Girls’ High School are all densely located in the Gangnam 8th district, and Daechi-dong Academy Street is also within walking distance.
Ace D&C is selling ‘Dongjak Boramae Station Free Sent’ in Sindaebang-dong, Dongjak-gu. This complex will be built from 4 underground floors to 20 above-ground floors, with a total of 124 households with exclusive areas of 42-43㎡, and 91 households with exclusive areas of 43㎡ will be sold to the general public. The complex is located 150m away from Boramae Station, a transfer station for Line 7 and Sillim Line, and is located in the immediate vicinity of schools such as Boramae Elementary School, Daegil Elementary School, Daerim Elementary School, Daebang Elementary School, Munchang Middle School, Gangnam Middle School, Daebang Middle School, Suwon Girls’ High School, and Seongnam High School.
Hwang So-young, Donga.com reporter [email protected]
2024-07-17 10:37:31