The number of unsold private dwellings in Seoul has fallen below 1,000 for the first time this year. However, the small to medium-sized area, less than 60㎡, still remains unsold.
According to the Ministry of Land, Infrastructure and Transport, as of the end of March this year, Seoul had recorded 942 unsold private dwellings. This is a reduction of about 26% (350 dwellings) from 1,352 in January and 1,002 in February, with a further decrease of about 6% (60 dwellings) in March.
Among the unsold private dwellings in Seoul, 78% are concentrated in small to medium-sized areas, such as less than 40㎡ and between 40~60㎡. As of the end of March this year, there were 269 dwellings of less than 40㎡ and 330 dwellings between 40~60㎡, accounting for 78% of the total. The share of larger areas, including those between 60~85㎡ (156 dwellings) and over 85㎡ (45 dwellings), was only 22%.
Among the 25 districts in Seoul, Jungnang-gu saw the most significant reduction in unsold dwellings. In Jungnang-gu, 51 dwellings over 85㎡ were unsold last February, which came from a single apartment complex, 'Sangbong The Sharp First World' in Sangbong-dong. A month later, the sale of Sangbong The Sharp First World was completely sold out, bringing the number of unsold private dwellings in Jungnang-gu to '0' (zero).
Following that, Gangdong-gu and Yangcheon-gu each saw a decrease of four unsold dwellings, followed by Yongsan-gu (a decrease of two dwellings) and Seongbuk-gu (a decrease of one dwelling). In contrast, Dobong-gu was the only district where unsold dwellings increased by two.
The primary reason that approximately 600 small to medium-sized dwellings under 60㎡ in Seoul are struggling to find owners is the price per square meter set higher than the surrounding market prices.
In March this year, Gangdong-gu held the highest number of unsold private dwellings among the city districts with 287. Unsold dwellings were concentrated in sizes of 40㎡ (214 dwellings) and 40~60㎡ (73 dwellings). Notably, there were many unsold units in complexes with approximately 100 dwellings built 2-4 years ago in Gildong.
The 'Gangdong Central Heights City' (mixed-use development), which opened in Gildong last April, consists of 96 dwellings with a size of 44~49㎡, priced between 700 million to 800 million won at that time. Compared to a transaction of a 42㎡ unit in a 20-year-old mixed-use 'Hanbit' apartment (317 dwellings) in the same Gildong area, which sold for 369 million won last May, the price was deemed expensive by real estate professionals. Despite being a new complex located about a 5-minute walk from the Gildong Station of Seoul Subway Line 5, 32 units remain unsold after completion.
Similarly, the prices for the small-scale complexes in the Gildong Station area, namely 'SI Palace Gangdong Centum 1st' (mixed-use development, 64 dwellings) and 'SI Palace Gangdong Centum 2nd' (urban lifestyle housing, 96 dwellings), ranged from 300 million to 600 million won. As of the end of March this year, 41 dwellings in the 1st complex and 75 dwellings in the 2nd complex remain unsold.
In Gildong, complexes such as 'Gyeongjiarium' (32 unsold dwellings), 'Dasungizville' (15 unsold dwellings), and 'Firs One City' (45 unsold dwellings) are also unable to sell out. In Cheonho-dong, complexes like 'Cheonho Station Maestro' (14 unsold dwellings), 'Misa Areumchae Apartment' (25 unsold dwellings), and 'Cheonho Asahaim Officetel' (8 unsold dwellings) have also not resolved their unsold status.
Park Ji-min, head of the Wolyeong Housing Research Institute, noted, 'Even when a new complex is in a transit-oriented development in Seoul, if it is only a small scale of 100-200 dwellings and the units are one or two rooms with prices higher than the market rates, they receive little interest from potential buyers. Consumers have determined that it is better to purchase nearby established apartments with sizes between 59~84㎡ than to buy overpriced one or two-room apartments.'