Due to the contraction of the reconstruction market and political turmoil, the number of housing supply in Seoul is expected to be limited to only one complex until April this year.
According to Real Estate R114 and Realtoday on the 23rd, the number of housing supplies in Seoul this year (based on general supply of 30 or more units) is solely represented by the 1,097 units (482 units for general supply) of the 'Raemian One Perla' in the Bangbae-dong neighborhood of Seocho-gu, which underwent a subscription last month. This is the lowest level for the first quarter in the last five years.
In April, the supply of three complexes in Seoul was expected; however, it has been reported that the housing projects have been postponed until next month or later. The 'Gocheok Hillstate Prugio' in Guro-gu, the Dongseon 2 district redevelopment project in Seongbuk-gu, and the 'Xi The Carrot 141' in Yeoksam-dong, Gangnam-gu have seen their supply delayed due to construction schedules and issues with cooperation. It is known that these complexes will struggle to supply even before May.
This shortage of housing supply is largely due to the contraction in reconstruction projects caused by the excess profit recovery system for reconstruction (revised regulations). In Seoul, reconstruction and redevelopment account for most apartment supplies. Additionally, with the political turmoil over matters such as impeachment, construction companies and cooperatives have taken a wait-and-see approach.
This supply shortage may persist until May. Hyundai E&C plans to supply 'Hillstate Mediale' (2,083 units) in the Daejo-dong area of Eunpyeong-gu in May; however, there are opinions in the housing supply industry that this project may also see delays in its supply plans.
An official in the housing supply industry noted, "Considering the recent political situation, there is an atmosphere of prioritizing waiting instead of expanding housing supply."