Last month, the nationwide tally of "unsold after completion" homes topped 30,000 units. Apartments left unsold even after completion hit the highest level in 13 years and 11 months.
Nationwide supply indicators for dwellings showed signs of improvement. However, with completions halved, it appears difficult to feel an immediate increase in the supply of dwellings.
According to the Ministry of Land, Infrastructure and Transport's dwelling statistics for February released on the 31st, nationwide unsold after completion came to 31,307 units. That was up 5.9% from the previous month (29,555 units) and the highest since March 2012 (30,438 units), or 13 years and 11 months.
Most unsold after completion units are located outside the greater Seoul area. In the provinces, "darkened" apartments numbered 27,015 units, up 1,403 (5.5%) from the previous month. Unsold-after-completion apartments are concentrated in Daegu (4,296 units), South Gyeongsang (3,629 units), and South Chungcheong (2,574 units). The greater Seoul area has 4,292 units of unsold-after-completion stock. That is up 349 units (8.9%) from the previous month.
The government is purchasing unsold-after-completion stock through Korea Land & Housing Corporation (LH) and others to revive the construction economy, but the problem of stubborn unsold units is getting more serious.
General unsold dwellings totaled 66,208 units, down 0.6% from the previous month (66,575 units).
Last month's dwelling supply indicators all improved for permits, starts, and pre-sales, excluding completions. Dwelling permits nationwide were 14,268 units, up 14.1% from a year earlier. However, in Seoul, only permits for 2,591 units were issued, with performance down 46.5% from a year earlier.
Dwelling housing starts were 14,795 units, up 46.9% from a year earlier. In particular, Seoul recorded starts for 3,031 units, an increase of 239.0% from the same period a year earlier. Starts in the greater Seoul area were 6,394 units (up 43.7% from Feb. a year earlier), and outside the area 8,401 units (49.5%).
Pre-sales also increased to 10,924 units nationwide, up 102.9% from a year earlier. In Seoul, there were no housing starts in Feb. last year, but in Feb. this year the figure rose by a net 876 units. Pre-sales in the greater Seoul area totaled 7,253 units, a net increase from a year earlier, while the provinces logged 3,671 units, down 31.8%.
Dwelling completions were 15,064 units, down 58.4% from a year earlier. Completions in Seoul fell 25.4% to 1,703 units, and the greater Seoul area plunged 46.4% to 5,711 units. Provincial completions were 9,353 units, down 63.4% from Feb. last year.