Rising Home Prices Benefit the Presale Market? Apartment Sales Supply-Demand Index Rises for Four Consecutive Months

[Financial News] A buyer-dominant trend, in which buying pressure exceeds selling pressure, is becoming increasingly evident in the apartment sales market in the Seoul metropolitan area. As rising home prices increase the barriers to entering the sales market and market fatigue grows, attention is focused on whether end-users will turn their attention to the presale market.
According to the Korea Real Estate Board (KREB) on the 11th, the apartment sales supply-demand index for the Seoul metropolitan area stood at 105.7 in July. Using 100 as the baseline, a higher figure indicates that more people are looking to buy homes. After standing at 100.0 in March, indicating a balance, the Seoul metropolitan area's sales supply-demand index has continued its upward trend, exceeding the baseline for four consecutive months: 101.1 in April, 103.1 in May, 104.7 in June, and 105.7 in July.
Seoul is the key driver of the upward trend. Seoul's apartment sales supply-demand index climbed sharply from 103.1 in March to 114.2 in July. Buying sentiment has heated up considerably in both the Gangbuk area (117.5) and the Gangnam area (111.0). Gyeonggi Province and Incheon have also fully shifted into buyer-dominant territory. After recording 100.1 in May, Gyeonggi Province exceeded the baseline for three consecutive months, reaching 101.2 in June and 102.2 in July. Eastern Region 1 (112.4), including Hanam-si and Gwangju, and Gyeongbu Region 1 (105.7), including Seongnam, Gwacheon, and Anyang, led the increase. Incheon also continued its steady recovery, recording 100.6 in July.
Fueled by the heat in the Seoul metropolitan area, the nationwide apartment sales supply-demand index also reached 99.8 in July, coming close to surpassing the baseline of 100. It has rebounded for four consecutive months since hitting a low of 96.5 in March. The market is watching whether the buyer-dominant trend in the existing-home market will lead to increased interest in presale subscriptions. When asking prices rise and listings are withheld amid a seller-dominant market, the price burden on end-users increases. Accordingly, analysts expect demand to concentrate on new presale complexes that offer relatively reasonable prices and easier financing plans.
Amid this trend, promising new presale complexes are also receiving renewed attention. Daewoo Engineering & Construction Co., Ltd. is selling Geomam Station Prugio Pravenue, a privately participated public-sale apartment complex in Block B-1 of the Incheon Geomam Station Public Housing District. The complex comprises 441 units with exclusive-use areas of 60 to 84 square meters and is within walking distance of Geomam Station, a transfer station for the Airport Railroad and Incheon Subway Line 2.
LOTTE Engineering & Construction Co., Ltd. is introducing Sangdong Station Lotte Castle Signature in the Sangdong area of Wonmi-gu, Bucheon. The large-scale complex consists of seven buildings ranging from eight basement levels to 49 above-ground floors, with 1,859 units offering exclusive-use areas of 84 to 192 square meters. It benefits from its prime location immediately adjacent to Sang-dong Station on Seoul Subway Line 7. Bndo Engineering & Construction Co., Ltd. plans to supply Gyeyang New City KIVE Uborah in Blocks AC3 and AC4 of Gyeyang New City. The complex will comprise 1,110 units with exclusive-use areas of 84 to 93 square meters, is located near Bakchon Station on Incheon Subway Line 1, and will be surrounded by numerous planned school sites.

[email protected] Jeon Min-kyung Reporter