Ministry of Land, Infrastructure and Transport, February Housing Statistics
Due to the temporary lift of the land transaction permit system suspension, Seoul property sales increased by 47%.
Last month, the number of unsold houses, referred to as ‘malignant unsold units’ even after completion, increased again. According to the ‘February Housing Statistics’ released by the Ministry of Land, Infrastructure and Transport on the 31st, the number of completed but unsold houses nationwide reached 23,722 units, an increase of 850 units (3.7%) from the previous month (22,872 units). This is the highest number in 11 years and four months.
In particular, the number of completed but unsold units in provincial areas increased by 4.1% to 19,179 units compared to the previous month (18,426 units). By region, Chungbuk increased by 40.2% to 565 units compared to a month earlier, and Gyeongnam increased by 21% to 2,459 units. In terms of the number of units, Daegu (3,067 units), Gyeongbuk (2,502 units), Jeonnam (2,401 units), and Busan (2,261 units) had the highest numbers of malignant unsold units.
However, the nationwide number of unsold houses decreased by 3.5% from the previous month to 70,061 units. The number of unsold units in the metropolitan area decreased by 10.9% to 17,600 units, which influenced the decline. Unsold units in provincial areas decreased slightly by 0.8% to 52,461 units.
Last month, the volume of housing transactions increased significantly. Nationwide housing sales transactions were recorded at 50,698 units, an increase of 32.3% from the previous month. Notably, apartment sales in Seoul (4,743 units) increased by 46.7% from the previous month (3,233 units). This was attributed to the lifting of some land trade restrictions in southern Seoul on the 12th, coupled with seasonal moving demand and expectations of interest rate cuts.
Lease transactions also increased by 38.6% to 278,238 transactions from the previous month. By type of lease, Jeonse transactions were counted at 103,114, and monthly rent transactions at 175,124, with monthly rentals accounting for about 63% of the total transactions.
However, the performance indicators for housing supply, considered as leading indicators, showed a downward trend. Housing permits in February numbered 12,503 units, a decrease of 44.3% from the previous month. Housing permits in the metropolitan area fell by 53.7% to 7,003 units compared to the previous month. Housing starts also saw a slight decrease of 1.1% to 10,069 units.
In February, national housing pre-sales fell by 27.6% to 5,385 units from the previous month. The cumulative pre-sales for January to February this year also dropped by 67.9% to 12,825 units compared to the same period last year. No pre-sales were completed in the metropolitan area last month. Due to the prolonged impeachment situation, pre-sales in Seoul are expected to remain at zero in April as well. In the provinces, pre-sales reached 5,385 units last month, an increase of 40.9% from the previous month, but still down 61.6% compared to a year ago.