In the first half of this year, the number of 'unsold units after completion' in the five major metropolitan cities has surged compared to last year. Unsold units after completion refer to complexes where apartments have been fully constructed but remain unsold. The number of unsold units after completion in Daegu has more than doubled compared to last year, and most major metropolitan areas such as Busan (89.9%) and Gwangju (59.9%) also saw an increase in unsold units after completion. The surge in unsold units in Daegu's Dalseo District, Busan's Busanjin District, and Saha District is particularly notable.
According to the Ministry of Land, Infrastructure and Transport and Woori Bank's WM Sales Strategy Department on the 18th, the number of unsold units after completion in Daegu as of the end of June was recorded at 3,824 units. This figure represents an increase of 2,189 units (133.8%) compared to a year ago in June 2024 (1,635 units). This means the unsold units after completion have more than doubled over the year.
By district, Dalseo District saw a sharp increase in unsold units after completion from 42 units to 1,275 units. Dalseo District accounted for 33.3% of the total unsold units after completion in Daegu. Other areas with significant unsold units after completion include Seogu (772 units, 20.2%), Suseong District (626 units, 16.4%), and Jung District (481 units, 12.6%).
Busan also experienced an increase in unsold units after completion from 1,402 units to 2,663 units, a rise of 89.9% (1,261 units). Busanjin District and Saha District accounted for more than half of Busan's total unsold units after completion. While there were only 6 units unsold in Saha District in June last year, this year the number has risen to 440 units, accounting for 34.4% of the total unsold units after completion in Busan.
Busanjin District also saw a sharp increase in unsold units after completion from 48 units to 409 units. This area holds 28.6% of the total unsold units after completion in Busan. Busanjin District is located in the center of Busan, while Saha District is situated on the outskirts.
Not only Daegu and Busan but also most major metropolitan areas have seen an increase in unsold units after completion. Gwangju saw a 59.9% increase in unsold units after completion compared to the previous year, while Daejeon (42.3%) and Ulsan (22.1%) also experienced increases of over 20%.
Experts analyze that the inability to predict the market and the resulting oversupply are impacting major metropolitan areas. Building new towns and apartment complexes near the downtown areas of large cities leads to a drain of the population to these new towns, and attempting to sell apartments back in the downtown areas has been pointed out as a major cause of the increase in malignant unsold units.
Kim In-man, head of the Kim In-man Real Estate Economic Research Institute, noted, "The complexes currently experiencing unsold units problem are those that started the project 4 to 5 years ago, around 2020-2021," adding, "They assumed the real estate boom would continue and took project financing (PF) loans, resulting in oversupply, the side effects of which are now becoming apparent." Nam Hyuk-woo, a researcher at Woori Bank's WM Sales Strategy Department, also mentioned, "The significant oversupply, where the number of available units greatly exceeds demand, combined with relatively high selling prices, is contributing to the continuation of large-scale unsold units in major metropolitan areas."
Lee Young-rae, director of Real Estate Survey, stated, "The surge of unsold units in Busan's Saha District is related to the newly developed Busan Eco-Delta City across the Nakdong River." He explained, "As the new town was established, the population in Saha District has decreased, and by trying to sell apartments in these areas, most have ended up unsold." Eco-Delta City is being developed in areas such as Gangdong-dong in Busan's Gangseo District, covering an area of 11.770 square kilometers. The Korea Water Resources Corporation (K-water) and Busan Urban Corporation are undertaking the project, which consists of a total of 33 apartment complexes.
Meanwhile, according to the Ministry of Land, Infrastructure and Transport, the total number of unsold units nationwide as of the end of June this year is 60,734 units, of which 78.1% or 49,795 units are located in the provinces. Additionally, the total number of unsold units after completion is 26,716 units, with 83.5% or 22,320 units being located in the provinces.