Presales slow outside of big cities

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Presales slow outside of big cities

Spring apartment presales are expected to peak next month, with 56,737 units to be listed, a 31.3 percent increase compared to the 43,201 listed this month, according to real estate information provider Budongsan 114.

The sale of apartments yet to be constructed in particular will see a significant surge in the greater Seoul area, which is expected to increase 43.6 percent, or 9,974 compared to this month’s 32,852 units. Over 4,800 units will be in Seoul, while 25,000 units will be in Gyeonggi and 2,230 in Incheon.

The rest of the country can expect 23,885 units to go up for sale, 17.5 percent more than this month. Most of the apartments will be on sale after the general election on April 13.

“While most apartments put up for sale are expected to do well, some regions will suffer from low demand because of uncertainties in the market, with concerns about oversupply and tightened regulations on mortgage loans,” said Nam Sang-woo, a researcher at Budongsan 114.

In fact, competition for apartments in regions outside of major cities like Seoul has been falling recently. This month, the average number of bidders on these apartments was 3.64, whereas a month ago, it was more than six. In January, it was nine.

Daegu had the highest number of bidders at 60.74, followed by Busan with 11.9 and Seoul with 11.2. On the contrary, apartments in North Chungcheong were the least popular at 0.01, trailed by second-lowest South Jeolla with 0.39 and South Chungcheong with 1.22 percent. Gyeonggi ranked eighth with 2.08 among the six cities and eight provinces.

In Seoul, the largest number of apartment presales will come from Myeongil-dong in Gangdong District, with 1,900 units being listed.

With 839 units, Gangwon will see the least apartments up for presale, fewer than even the 1,319 in Jeju.

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