Since the start of this month, unsold units have occurred one after another at three complexes that opened subscriptions in Incheon. As Incheon's September supply outlook index also worsened, experts noted it will take time to clear unsold units in the Incheon area.
According to the Korea Real Estate Board (REB) Subscription Home on the 16th, Doosan We've The Central Dohwa in Dohwa-dong, Michuhol District, Incheon, which opened subscriptions on the 8th, fell short with only 32 applications for 212 units in the special supply, and then received 91 applications for 380 units in the first and second priority rounds, recording an average competition rate of 0.32 to 1. The complex will consist of 660 units in total, from two basement levels to a maximum of 39 stories.
Also, Doosan We've Central Park Ganghwa, a large complex of 21 buildings with 1,325 units for sale in Chang-ri, Ganghwa County, Incheon, received no applications for 220 units in the special supply. The first and second priority rounds drew only 16 applications for 371 units, resulting in a low average competition rate of 0.04 to 1.
Elif Geomdan Foredu, which opened subscriptions in Geomdan New Town, Seo District, Incheon, where demand had been relatively expected, also recorded a competition rate of 0.45 to 1 with 279 applications for 620 units from the 1st to the 3rd, leaving most types undersubscribed. The complex will consist of 669 units across 11 buildings.
Experts assessed that the three business sites were held back by ambiguous locations or by offering high presale prices compared with nearby complexes. Park Ji-min, head of Wol Yong Subscription Research Institute, said, "In the case of Doosan We've Central Park Ganghwa, Ganghwa County itself has pronounced local characteristics and an isolated location, so demand is limited," and added, "Doosan We've The Central Dohwa had a somewhat higher presale price than neighboring complexes, and Geomdan Foredu also had a high presale price and is not in a fully station-area location, so it was seen as having weak competitiveness."
The presale price of Doosan We've The Central Dohwa was set at 641 million to 659 million won for the 84-square-meter exclusive-use type. For a nearby complex, The Sharp Incheon Sky Tower Complex 1, actual transaction prices for the same size were around 530 million won, with this year's highest at 570 million won.
An official at A Real Estate Agency in Dohwa-dong, Michuhol District, Incheon, said, "It didn't seem like there was no demand, but the price gap compared with nearby complexes wasn't large," and added, "The roads are well established and daily-life infrastructure such as large supermarkets is decent, but the inconvenience of using public transportation during the morning commute seems to have had some impact."
Elif Geomdan Foredu is about 1.6 kilometers from Geomdan Lake Park Station on Incheon Line 1, the nearest subway station, making it difficult to walk, and it is some distance from the main commercial areas around Geomdan Lake Park Station and Geomdan Sageori Station.
Amid difficulties for Incheon-sale complexes to draw interest, Doosan Engineering & Construction and BS Hanyang plan to offer Doosan We've & Sujain Bupyeong The First at the end of September. Park said, "The site has a good location, but the presale price is the key. If it's set in the 600 million won range, results should be good, but if it exceeds 700 million won, it will likely struggle."
Meanwhile, according to the Korea Housing Institute, Incheon's September apartment supply outlook index was 61.5, plunging 15.4 points from 76.9 the previous month. Ko Jun-seok, a chief professor at the Sangnam Institute of Management at Yonsei University, said, "Incheon, where recent subscription results have been weak, also saw its supply outlook index fall, so it seems clearing unsold units will not be easy for a while," and added, "Incheon's transportation environment is poor for absorbing Seoul demand, and with construction costs rising recently, presale prices are climbing nationwide, so cases where presale prices match what buyers want will likely be rare, meaning the struggles will continue."