The number of unsold dwellings in Daejeon increased by 90% over the past year, and the number of unsold dwellings known as 'malignant unsold dwellings' also rose by 30%. Analysts interpret that the supply glut occurred as the schedule for new sales, which had been delayed since two years ago due to high-interest rates and the real estate market recession, was concentrated all at once last year.
According to the Ministry of Land, Infrastructure and Transport, as of the end of January this year, the number of unsold dwellings in Daejeon recorded 2,095 units. This marks an increase of 88.4% (983 units) compared to 1,112 units at the end of January last year. Among regional areas, Daejeon saw the largest increase in unsold units.
The number of malignant unsold dwellings in Daejeon as of the end of January this year was 582 units, reflecting an increase of 33.5% (147 units) compared to 435 units at the end of January last year.
Currently, the unsold apartments in Daejeon include Yuseong Haneulchae Hyer and Hillstate Doan River Park 5 in Yuseong District. In Seo District, there are unsold units remaining at Dunsan Harrington Place River Park and Gwanjeo Prugio Central Park 1.
In Jung District, unsold apartments include Hillstate Sunhwa The Wise, Daejeon Reeve Swichan 2, e-Pyeonhan Sesang Seo Daejeon Station Centro, and Cultural Xi SK View. In Dong District, there is Daejeon Seongnam Woomirin New City, and in DAEDUCK District, Sangyong The Platinum Nature has yet to sell its unsold units.
Among completed unsold apartments in Daejeon, there are Seodaejeon Korean Adellium and La Terrace PH 42 in Jung District, and Yongmun Station Ricest in Seo District, as well as Hillstate Gayang The Wise in Dong District.
Mr. A, who operates a real estate brokerage in Dunsan-dong, Daejeon, noted, "There were no new sales in areas with good locations, such as Dunsan-dong, known as the Gangnam of Daejeon," adding, "Currently, areas with a high number of unsold units are mostly located in new towns away from central Daejeon or consist of residential-commercial complexes with low demand."
The surge in the number of unsold dwellings in Daejeon over the past year was due to the supply of apartments being concentrated at three times the annual average last year.
According to sources in the Daejeon real estate industry, Daejeon had aimed for about 20,000 units of new supply for the year 2023. However, due to the ongoing high-interest rate trend and rapid deterioration of the real estate market, the actual supply in 2023 reached only 5,500 units.
According to the Daejeon City government, the number of new apartment units supplied last year was 16,933. This represents an increase of about three times compared to 5,500 units in 2023. This year, Daejeon also has a scheduled supply of 7,059 units.
A representative from the real estate development industry explained, "With the decline in the real estate market, companies that had planned to sell apartments in Daejeon in 2023 continued to postpone their schedules, but once they determined that they could not delay any further, they launched mass sales last year," adding, "From the 2010s to 2022, the annual sales in Daejeon ranged from 5,000 to 8,000 units, but last year saw nearly 17,000 units supplied, resulting in a significant number of unsold units."
Song Seung-hyun, head of the Urban and Economic Department, analyzed, "With many complexes launched recently in Daejeon, housing demand has decreased as buyers deem the prices too high compared to surrounding apartment prices," and further stated, "Additionally, the drop in apartment prices in the nearby region of Sejong last year has provided more choices, impacting the increase in unsold dwellings in Daejeon."