Seoul Apartment Completions Drop 43% in May; Housing Starts Also Decline

The number of housing units completed in Seoul last month fell to half the level of the previous month, with the cumulative total for this year also showing a decline of over 40% compared to last year.

Cumulative housing starts for apartments in Seoul, which indicate future supply, also decreased by 25% compared to the same period last year.

According to housing statistics for May released by the Ministry of Land, Infrastructure and Transport today (June 30), nationwide housing construction permits in May totaled 19,323 units, down 33.9% from the previous month and 5.4% from the same month last year.

In the Seoul metropolitan area, permits reached 14,152 units, a 12.3% decrease from the previous month but a 64.0% increase compared to the same month last year.

Seoul recorded 6,292 units, an 11.7% decrease from the previous month but a 147.5% increase compared to the same month last year.

However, the cumulative number of permits from January to May this year fell by 4.0% to 57,765 units in the metropolitan area and by 1.4% to 19,052 units in Seoul compared to the same period last year.

Nationwide housing starts totaled 22,717 units, a 14.4% decrease from the previous month but a 49.3% increase compared to the same month last year.

In the metropolitan area, starts reached 11,685 units, down 31.1% from the previous month but up 27.6% from the same month last year.

Seoul recorded 2,607 units, an increase of 29.6% from the previous month and 7.3% from the same month last year.

As of May this year, cumulative nationwide housing starts reached 94,367 units, up 27.0% from the same period last year, while the metropolitan area saw an 8.1% increase to 48,855 units.

However, Seoul saw a 10.7% decline to 9,630 units.

For apartments specifically, cumulative housing starts in Seoul from January to May totaled 6,615 units, a 25.3% decrease compared to the same period last year.

Apartment presales in May totaled 14,731 units nationwide, a 57.2% decrease from the previous month but a 30.4% increase compared to the same month last year.

In the metropolitan area, presales reached 10,565 units, down 39.4% from the previous month but up 10.6% from the same month last year.

Seoul recorded 2,548 units, a 34.3% increase from the previous month but a 38.0% decrease compared to the same month last year.

Nevertheless, cumulative presales in Seoul from January to May this year reached 11,377 units, a 102.7% increase compared to the same period last year (5,612 units).

The number of completed housing units (move-ins) nationwide fell to 12,913, a 28.4% decrease from the previous month and a 51.0% decrease from the same month last year.

In the metropolitan area, completions reached 5,309 units, down 39.1% from the previous month and 66.9% from the same month last year.

Seoul recorded 1,914 units, a 49.8% decrease from the previous month and a 42.9% decrease compared to the same month last year.

Cumulative completions from January to May this year in Seoul totaled 13,111 units, a 41.6% decrease from the same period last year (22,440 units), while the metropolitan area saw a 46.3% decline to 42,393 units.

Focusing on apartments, completions in Seoul in May totaled 1,413 units, down 57.4% from the previous month and 53.3% from the same month last year. The cumulative total from January to May (10,690 units) also fell by 48.4% compared to last year, continuing the downward trend.

Nationwide housing sales transactions reached 66,490, a 4.7% decrease from the previous month but a 6.0% increase compared to the same month last year.

Cumulative transactions from January to May this year reached 327,455, a 15.1% increase compared to the same period last year.

In the metropolitan area, cumulative housing sales transactions from January to May this year reached 172,554, up 20.2% from the same period last year, while Seoul saw a 17.7% increase to 56,938.

Jeonse and monthly rent transactions totaled 209,754, a 10.5% decrease from the previous month and a 17.0% decrease from the same month last year.

From January to May this year, the proportion of monthly rent transactions (including those with security deposits) among all rental contracts was 68.6%, an increase of 7.6 percentage points from the same period last year.

As of the end of May, the number of unsold housing units nationwide stood at 65,239, a 0.1% increase from the previous month.

Conversely, unsold units after completion, often referred to as "hard-to-sell" inventory, totaled 29,350, a 0.5% decrease from the previous month.

In the metropolitan area, such inventory rose by 11.3% to 4,828 units, while in non-metropolitan areas, it fell by 2.6% to 24,522 units.

(Photo courtesy of Ministry of Land, Infrastructure and Transport, Yonhap News)
※ Please note: This article was translated by AI and may contain errors.