Recently, newly constructed apartment complexes in the metropolitan area have recorded high competition rates; however, some unit types have faced shortfalls, and there have been frequent cases of contract cancellations.
According to the construction industry on the 4th, the 'Pyeongchon Xi Purnity' in Anyang saw some successful bidders cancel their contracts, leading to a non-priority application for unsold units on December 24 last year. The Korea Real Estate Board reported that the complex received 3,919 applications for 299 units during last month's sale, achieving a competition rate of 13.1 to 1, thus being evaluated as a successful launch; however, a shortfall occurred due to contract cancellations.
'Acro Bestin New' in Anyang recorded an average competition rate of 5.6 to 1, but showed a contract signing rate of only 43%, lower than half of the offered units, prompting a non-priority application on December 17 last year. Notably, the contract rate for the exclusive 84 square meters was only 22%.
Such unsold units are also appearing in Seoul. The 'Seoul One I-Park,' which was sold as part of the development project around Gwangwoon University Station in November last year, achieved an average competition rate of 14.9 to 1. However, some larger units over 105 square meters faced shortfalls. Additionally, as some successful bidders for the exclusive 84 square meters canceled their contracts, a lottery event for provisional residents will be held, followed by a non-priority application.
The The Sharp First World, built on the former Sangbong Terminal site in Jungnang District, Seoul, was considered the largest application in the northern area with a high-end brand, recording an average competition rate of 9.3 to 1; however, some shortfalls occurred in the exclusive 98 square meters.
The frequent emergence of unsold units due to contract cancellations is analyzed to be caused by the high selling prices amid a market frozen by loan regulations. A representative from a construction company noted, 'Even if the application competition rates appear high these days, many applicants are abandoning contracts due to loan regulations and the burden of selling prices, making it difficult to sell out.' The selling price for Acro Bestin New was 45 million won per 3.3 square meters, marking a historical high for the Anyang area. The selling price for the exclusive 84 square meters of Seoul One I-Park reached up to 1.414 billion won, while The Sharp First World’s exclusive 98 square meters had a selling price of 1.569 billion won, raising controversies over high selling prices.
Park Ji-min, head of the Wolyong Application Research Institute, remarked, 'Although the competition rates appeared high, there may have been a judgment that it was better to purchase nearby newly built properties due to the excessively high selling prices.' He noted, 'Unsold units are expected to continue until the first half of this year.'
Furthermore, there is not much demand for medium and large unit sizes, and areas such as Nowon District, where Seoul One I-Park is located, and Jungnang District, where The Sharp First World is located, are regions with low expectations for capital gains if sold in the future, which also influenced this situation. Representative Park explained, 'Due to the high selling prices, there is less demand concentration on medium and large units,' adding, 'The fact that they are located in the outskirts of Seoul, where nearby property prices are low, has also impacted the unsold units.'