July housing pre-sales to increase 30% year-on-year nationwide

South Korea is set to see a significant increase in new housing supply in July, with approximately 29,671 housing units slated for pre-sale. This figure represents a roughly 30% rise compared to the 22,793 units offered in July of the previous year. The general pre-sale volume is also projected to grow by about 17%, from 18,554 units last year to 21,679 units this year.

The 수도권 (Seoul Metropolitan Area) will dominate this new supply, accounting for approximately 68% of the total, with 20,052 units. Gyeonggi Province alone is expected to lead this surge with 12,987 units across 13 complexes, including major projects like the Hangang Prugio Riverfront in Gimpo and Lotte Castle in Bucheon. Incheon will contribute an additional 6,154 units across three complexes, primarily in Michuhol and Bupyeong districts, further boosting the metropolitan area's housing stock.

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Recently, with the expansion of international tensions and volatility in raw material prices, the burden of construction costs has increased, leading to continued pressure on pre-sale prices for new developments.

In contrast, non-metropolitan areas will offer 9,419 units across 11 complexes. Key regions include Gyeongnam with 4,355 units, Busan with 1,876 units, and Chungnam with 1,504 units. Seoul itself will see 1,111 units offered in two new complexes, primarily developed through urban regeneration projects, offering good accessibility to the city center.

Despite the increased supply, experts anticipate upward pressure on pre-sale prices. This is attributed to rising construction costs driven by global geopolitical instability and volatile raw material prices. Consequently, demand from prospective buyers is expected to be more selective, focusing on units that offer competitive pricing and value.

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Consequently, subscription demand is expected to be selective, focusing on complexes that offer competitiveness commensurate with their sale prices.