Newly offered complexes in Yeongjong International City on Yeongjongdo in Incheon have recently fallen into a glut of unsold units. Despite pricing in the 500 million to 600 million won range for the 84-square-meter standard floor plan popularly called the national standard, few people applied. Experts say prices for recently occupied new apartments have formed below presale prices and that weaker accessibility to Seoul, among other factors, combined to produce this outcome.
According to the Korea Real Estate Board (REB) on Dec. 22, Yeongjong International City The Atré La Mer I in Yeongjongdo, Incheon, which took first- and second-priority applications on Dec. 30-31, 2024, closed with a competition rate of 0.31 to 1 as only 275 people applied for 879 dwellings supplied. This complex is a mixed-use residential development to be built at 1958-8 and 1958-9, Jungsan-dong, Jung District, Incheon, with eight buildings from three underground floors to 49 above-ground floors, totaling 1,009 dwellings.
It is an in-house project in which Daebang Construction and its affiliates handle both development and construction. Development is by DB General Construction and DB Housing, and construction is by Daebang Construction. Move-in is scheduled for Oct. 2029. The presale price for the 84-square-meter (34-pyeong) national standard floor plan ranges from 511.6 million won to 692.92 million won. A Daebang Construction official said, "The schedule for lower-priority sales has not been finalized yet."
Yeongjong International City Shinil Viaf Crest Complexes 1 and 2, offered during the same period, also saw a large number of unsold units. Yeongjong International City Shinil Viaf Crest Complex 1, developed by Korea Real Estate Investment & Trust Co. (KOREIT) and built by Shinil, drew applications for only 76 out of 436 dwellings in first- and second-priority rounds. Yeongjong International City Shinil Viaf Crest Complex 2 drew 104 applicants for 503 dwellings. The presale price based on the maximum for the 84-square-meter unit is 568.9 million won for Complex 1 and 572.8 million won for Complex 2.
So far this year, presale performance in Yeongjong International City has remained sluggish. Starting with special supply on Jan. 2, Incheon Yeongjong Haneul City Daerasu Awesome, which took first-priority applications on the 5th and second-priority on the 6th, also failed to avoid unsold units. Developed by Jueun Housing Construction and built by Daerasu Construction, the complex drew applications for only 55 out of 294 dwellings in the first- and second-priority rounds. The average competition rate was 0.18 to 1. Located at 1958-1, Jungsan-dong, Jung District, Incheon (Yeongjong Haneul City A50BL), it consists of three buildings from one underground floor to 40 above-ground floors, totaling 297 dwellings, and was marketed by highlighting ultra-high-rise towers, ocean-view units for some households, and a beach promenade. The presale price is 571 million won for the 84-square-meter unit.
Experts analyze that the unsold inventory in Yeongjong International City stems from heavy recent supply of new apartments and locational disadvantages of being on an island. While presale prices in the 500 million to 600 million won range for the national standard cannot be considered absolutely high, nearby new complexes are currently trading in the 400 million won range, leaving little reason to apply for newly offered apartments.
In Haneul City Seohan I The UM in Jungsan-dong, which began move-ins in May 2024 and is now in its third year, an 84.93-square-meter unit recorded a transaction at 406.38 million won on Nov. 14, 2024. Also, in Yeongjong Haneul City KCC Switzen in Jungsan-dong, which began move-ins in Sept. 2019 and is now in its eighth year, an 84.73-square-meter unit changed hands for 465 million won on the 14th.
Park Ji-min, head of Wollyong Subscription Research Institute, said, "It is the region in the greater Seoul area where prices have risen the least, and you can buy new apartments in the 400 million won range, which is why new presale complexes are going unsold." Kim In-man, head of Kim In-man Real Estate Economy Research Institute, said, "Among the three international cities in Incheon's free economic zone—Songdo, Cheongna and Yeongjong—Yeongjong is showing the weakest performance," adding, "Although it is linked to the mainland by the Airport Railroad, the psychological burden of its island location and the recent increase in new-apartment supply have combined to push prices down." Kim added, "That said, the presale prices of new apartments around 500 million to 600 million won are unlikely to fall further, so for end-users, applying for subscriptions would not be a bad choice."