In Nov., the number of dwellings left unsold after completion, classified as "toxic unsold units," neared 30,000 even after all apartments were built. It was the highest in 13 years and 8 months.
In Seoul, the real estate transaction market is freezing fast. New supply was nonexistent as last month's new pre-sales in Seoul came to 0 households. Apartment sales transactions plunged more than 60% in a month.
According to the "Nov. dwellings statistics" released on the 31st by the Ministry of Land, Infrastructure and Transport, unsold units after completion nationwide reached 29,166 households, up 3.9% from the previous month. It was the highest in 13 years and 8 months since Mar. 2012 (30,438 households).
The increase in unsold units after completion was concentrated in the provinces. In Nov., toxic unsold units in the provinces rose by 1,082 households (4.6%) from the prior month to 24,815 households. Unsold volume in the greater Seoul area was 4,351 households, up just 4 households (0.1%) from the previous month.
Unsold dwellings nationwide totaled 68,794 households. That was down 0.4% (275 households) from the previous month (69,069 households). The greater Seoul area recorded 16,535 households, down 5.8% (1,016 households) from the prior month (17,551 households), while the provinces logged 52,259 households, up 1.4% (741 households) from the prior month (51,518 households).
Unsold units over 85㎡ totaled 10,632 households, down 9.9% from the prior month (11,803 households), while units 85㎡ and under totaled 58,162 households, up 1.6% from the prior month (57,266 households).
◇ Dwellings supply indicators improve… Seoul pre-sales "0"
Last month's dwellings supply indicators showed some improvement from the prior month. Dwellings permits reached 30,681 households, up 9.4% from the previous month. In Seoul, where supply shortages have deepened, permits were issued for 3,517 households, up 22.2% from the prior month. The greater Seoul area saw a 9.6% increase to 15,434 households, and the provinces saw permits for 15,247 households, up 9.2%.
Groundbreakings also rose to 19,912 households, up 12.0% from the prior month. Groundbreakings in the greater Seoul area increased 44.2% to 14,571 households, while the provinces fell 30.4% to 5,341 households.
Pre-sales (approved) totaled 27,430 households, up 12.2% from the prior month. While pre-sales in the greater Seoul area increased 24.1% to 18,225 households, Seoul recorded no pre-sales.
Completions nationwide totaled 22,804 households, up 4.1% from the prior month. The greater Seoul area recorded 14,832 households, up 109.1%, while the provinces recorded 7,972 households, down 46.2%.
◇ Seoul dwellings transactions halved… apartment sales down 60%
Seoul's dwellings transactions in Nov. totaled 7,570, down 51.3% from the prior month. Of these, apartment sale transactions were 4,395, down 60.2% from the prior month (11,041).
Total sale transactions in the greater Seoul area also fell 30.1% from a month earlier to 27,697. Apartment transactions in the greater Seoul area decreased 33.5% to 20,772.
By transaction type, sale transactions were 61,407, down 11.9% from the prior month. In non-capital regions, volume rose 12.1% from the previous month to 33,710 transactions, indicating a modest rebound in provincial sales.
In the rental market, the preference for monthly rent became more pronounced. Nationwide jeonse and monthly rent transactions in Nov. totaled 208,002, up 4.1% from the prior month, but jeonse (75,621) fell 5.3% from the same period last year.
Seoul's Nov. jeonse and monthly rent transactions totaled 60,891, up 2.3% from the prior month. Of these, jeonse was 22,333, down 0.3% from the same month a year earlier, while monthly rent rose 11% to 38,558.
The nationwide cumulative share of monthly rent also rose to 62.7%, up 5.3 percentage points (p) year over year. The greater Seoul area's Nov. jeonse and monthly rent transactions totaled 189,57, up 3.9% from the prior month. Of these, jeonse was 51,491, down 3% from the same month a year earlier, while monthly rent surged 17.6% to 87,466. In non-capital regions, jeonse and monthly rent transactions increased 4.5% to 69,045.