Recently, a number of unsold apartments have occurred in Incheon, exacerbating the accumulation of inventory. In the construction industry, the prolonged slowdown of the Incheon sales market has led to cases where construction companies delay their orders even after securing contracts.
According to the Korea Real Estate Board's application home on the 21st, the e-Pyeonhansaeng Dongincheon Bayfront, which had bidding on the 9th, received 240 applications for 429 units, resulting in a shortage in most types. The Inha University Prugio Edufore, which had its bidding on the 2nd, also saw a shortfall, with 401 applications for 548 units.
The increasing number of unsold apartments, particularly the substantial quantity of unsold units after completion classified as 'malicious unsold,' is creating concern in the Incheon real estate market. According to housing statistics released by the Ministry of Land, Infrastructure and Transport in October 2024, the number of unsold dwellings in Incheon has reached 3,260, a 92.6% increase compared to the same period last year (1,693 dwellings). Additionally, of these, 1,547 unsold dwellings were registered after completion, nearly tripling the 555 units reported the previous month.
In Incheon, even when construction companies secure contracts, there are instances where clients delay orders due to concerns about unsold properties. A spokesperson from a major construction firm noted, "The time it takes to commence the main work after a builder is selected varies greatly, and it is true that as the risk of unsold units increases due to market stagnation, cases of delayed construction are on the rise."
Experts pointed out that the issue of high offering prices is the most significant problem. They highlighted that while accessibility to Seoul is declining, the offering prices are set too high relative to the location, leading to an expectation that price increases will not meet potential.
Kim Eun-sun, head of the Zigbang Data Lab, said, "Incheon has been consistently supplying recently, and there are many planned developments, which does not garner a positive assessment regarding the scarcity value of supply. Currently, among the supply in the metropolitan area, the complexes that have performed well in sales or have seen price increases are attracting demand due to factors such as development benefits, accessibility to Seoul, and price competitiveness, but Incheon lacks in these aspects relatively."
There are also concerns that if the unsold units after completion remain as they are, the sales market will continue to suffer. Professor Seo stated, "If unsold units collect post-completion, it creates a perception of an unsold graveyard, which negatively impacts the image in the real estate market. Given the current political situation, Incheon is expected to continue facing these circumstances for some time."