▲ Apartment sales
As post-completion unsold housing in regional areas—often referred to as "malicious unsold properties"—approaches 30,000 households, it has been found that new construction has actually surged in some of the regions most heavily concentrated with these unsold homes.
While the government is expanding the purchase of unsold housing through the Korea Land and Housing Corporation (LH) to revive the construction sector, some critics raise concerns that public intervention could encourage moral hazard in the market and weaken supply-adjustment functions.
According to housing statistics from the Ministry of Land, Infrastructure and Transport, post-completion unsold properties nationwide stood at 29,786 households as of the end of June.
Among them, regional areas accounted for 25,091 households, or 84.2% of the total.
The regions with the highest numbers of unsold properties included Daegu (3,575 households), Busan (3,292 households), South Gyeongsang Province (3,226 households), North Gyeongsang Province (2,973 households), Gyeonggi Province (2,568 households), and South Chungcheong Province (2,372 households).
Among the top 10 regions with the most unsold properties, six saw an increase in construction starts in the first half of this year compared to the same period last year.
In North Gyeongsang Province, construction starts from January to June this year reached 8,242 households, representing a 459.2% increase from the same period last year.
Construction starts also rose in South Chungcheong Province by 285.4%, South Jeolla Province by 121.4%, Incheon by 102.6%, Daegu by 94.9%, and South Gyeongsang Province by 10.8%.
To revive the regional construction market, the government increased its purchase target for unsold homes in regional areas from 3,000 to 8,000 households, and raised the maximum purchase price ceiling from 83% to 90% of the appraised value.
During a real estate discussion presided over by Prime Minister Han Sung-sook on June 27, Minister of Land, Infrastructure and Transport Kim Yoon-deok also mentioned the regional unsold housing issue, emphasizing, "It is important for the state to actively purchase them, and we have made it so that prices can be offered quite smoothly."
Although the government explains these measures are intended to revitalize the construction sector, some in the industry evaluate them as having created a safety net that shields high-risk unsold projects.
Experts point out that while such government intervention may help revive the construction industry, it could undermine the market's mechanism for regulating housing supply.
(Photo: Provided by Yonhap News TV, Yonhap News)
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