Although apartment sale transactions centered on Seoul are lively and dwelling permits have surged, the number of dwellings completed that can be supplied to the market immediately fell to about half of last year's level.
According to the "May 2026 dwelling statistics" released on the 30th by the Ministry of Land, Infrastructure and Transport, dwelling permits and housing starts, which are leading indicators of the market, showed different patterns by region.
In May, nationwide permitting totaled 19,323 units, down 33.9% from a month earlier, but in Seoul alone 6,292 units received permits last month, helped by redevelopment and reconstruction projects. That is a 147.5% increase from the same period last year (2,542 units).
Housing starts, which mark the beginning of construction, totaled 22,717 units nationwide, down 14.4% from the previous month, but as project restarts picked up outside the capital region, starts in provincial areas (11,032 units) rose 82.2% from a year earlier, signaling a bottoming-out.
Approvals for presales, the yardstick of the subscription market, paused due to financial-sector regulations and seasonal factors. Nationwide presales in May totaled 14,731 units, down 57.2% from a month earlier. However, cumulative presales from January to May this year totaled 86,348 units, up 63.0% from the same period last year.
The problem is completions, the final stage of supply. Nationwide dwelling completions in May were 12,913 units, down 28.4% from the previous month and 51.0% from May last year (26,357 units). In particular, cumulative completions through May this year (88,143 units) were also down 46.7% from last year. Looking only at apartment completions, the 55.0% year-over-year decrease stands out, suggesting that rising construction costs and delays are leading to a shortage of move-in supply.
In the transaction market, Seoul apartments are outpacing the rest. Nationwide dwelling sale transactions in May were 66,490, down 4.7% from the previous month, but Seoul apartment sales recorded 8,946, up 18.9% from the previous month (7,521).
By contrast, lease transactions for jeonse and monthly rent totaled 209,754, down 10.5% from the previous month. With jeonse supply tight and high interest rates persisting, preference for monthly rent has intensified, pushing the share of monthly rent to 68.6% of all lease transactions through May this year, resetting the record high.
Meanwhile, unsold dwellings, the market's fuse, totaled 65,239 nationwide, up 0.1% (60 units) from a month earlier, holding steady. Internals, however, diverged. Unsold units outside the capital region (46,638) fell 2.6% from a month earlier, showing some absorption, but in the capital region they increased to 18,601, up 7.5% (1,303 units) in a month.
However, "unsold after completion," classified as toxic inventory by the construction industry, totaled 29,350 nationwide, down 0.5% from the previous month. Notably, in existing backlog areas such as Daegu, post-completion inventory fell 12.9%, indicating the effects of some provincial tax benefits and discounted presales.