Apartment Supply to Expand in June, with Over 30,000 Units Planned – Double Last Year's Figure

South Korea is anticipating a significant expansion in apartment construction this June, with over 30,000 units scheduled for sale nationwide. This represents a substantial 101% increase compared to the 14,998 units offered in June of the previous year. The number of units available for general sale is also expected to nearly double, rising from 12,790 to 25,097.

The 수도권 (Seoul Metropolitan Area) will be the epicenter of this construction boom, accounting for approximately 65% of the total planned supply, with 19,524 units. Gyeonggi province alone is slated to receive the largest concentration, with 12,864 units. Notable projects include the Osan Naesam-dong Bukosan Jayde Fore (1,517 units) and the Bucheon Wonmi-gu Yeokgok-dong Yeokgok District House Story (1,464 units). Seoul itself will see 3,803 new apartments, primarily from redevelopment projects like the Jangwi Prugio Mark One (1,931 units) in Seongbuk-gu and the Summit Clavion (812 units) in Yeongdeungpo-gu. Incheon is also preparing for a large influx, with 2,857 units planned, particularly in the Geomdan district.

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Concerns about a decrease in new construction and the possibility of future price increases due to rising construction costs are leading to continued demand for new apartment developments.

However, the reality of apartment supply can be more fluid than planned. In May, only 12,542 units were actually supplied, falling short of the 19,278 units initially scheduled. This discrepancy is attributed to adjustments in project timelines, permitting processes, and marketing strategies. Some of May's planned units have been deferred to June, highlighting the ongoing volatility in supply schedules.

Despite these potential scheduling shifts, demand for new apartments remains robust. Experts at Zigbang, a real estate data analysis firm, note that concerns over a decrease in new construction and potential price increases due to rising construction costs are driving demand. This interest is not limited to popular areas in the Seoul Metropolitan Area; some provincial developments are also experiencing strong subscription rates, indicating a broader market appetite for new housing.

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Recently, not only popular complexes in the Seoul Metropolitan Area but also some provincial complexes have recorded favorable subscription results.