Seoul new-builds draw buyers in droves ... 63.9% of first-priority applicants in the Capital Metropolitan Area choose Seoul

[Financial News] This year, at least six out of 10 people applying in the first-priority round in the Capital Metropolitan Area chose new apartments in Seoul.
On the 26th, an analysis by Real Estate R114 of Korea Real Estate Board data from Cheongyak Home found that 218,629 people applied in the first-priority round at 94 complexes in the Capital Metropolitan Area from January to September this year. Of these, 139,717 applied to just 21 complexes in Seoul, accounting for 63.9% of the total across the Capital Metropolitan Area.
Supply, however, was far short of demand. During the same period, 2,148 units were offered for general sale in Seoul, just 6.2% of the 34,796 units offered across the Capital Metropolitan Area. A simple calculation shows that about 65 first-priority applicants competed for each unit offered for general sale in Seoul, compared with about 2.4 in the rest of the Capital Metropolitan Area.
The number of newly completed apartments available for move-in is also declining. According to the Ministry of Land, Infrastructure and Transport's August housing statistics, 21,933 apartment units in Seoul were available for move-in from January to August this year, down 23.3% from 28,601 in the same period last year. The decline is expected to accelerate. Real Estate R114 projected that the number of units due for move-in in Seoul would fall from 18,263 in 2027 to 13,160 in 2028 and 8,225 in 2029, before dropping to 5,289 in 2030. The 2030 figure is less than a third of the 2027 total.
The supply shortage has led to high competition ratios. A succession of complexes in Seoul recorded first-priority competition ratios above 100 to 1. Arcroad Seocho in Seocho District had the highest average ratio, at 1,099.1 to 1, followed by Autier Banpo at 710.2 to 1. Ichon Le EL in Yongsan District (134.97 to 1) and Dongjak Central Dongmun The East in Dongjak District (114.79 to 1) also exceeded 100 to 1.
Among them, Arcroad Seocho received 32,973 applications in March for 30 units in the first-priority round. The price ceiling was applied, setting the sale price at 78 million won per 3.3 square meters, and all units offered for general sale had sold out within six days of the start of contracts in April. According to Zigbang, Seoul's average first-priority competition ratio was 156.3 to 1 during March, the month the complex issued its sales announcement, while applications totaled 90,322, the highest figure since September 2024.
Through the end of the year, projects in sought-after locations in downtown Seoul and the Gangnam area are set to come onto the market one after another. In the Gangnam area, Hyundai Engineering and Construction plans to launch sales next month for The H Banpo 124, a redevelopment of sections 1, 2 and 4 of Banpo Jugong Apartment Complex 1 in Banpo-dong, Seocho District. The large complex will have 5,007 units in total, of which 1,832 will be offered for general sale. Some 1,358 units, about 74% of the general-sale supply, will have an exclusive area of 84 square meters, and industry observers expect the sale price to exceed 80 million won per 3.3 square meters. Hyundai Engineering plans to offer The H Shinbanpo Estera, a 160-unit redevelopment of Shinbanpo 22nd in Jamwon-dong, Seocho District, this month. The general-sale units will include 28 with an exclusive area of 84 square meters.
In the downtown area, Hyosung Heavy Industries will launch sales next month for Harrington Place Mullae near 27-1 Mullae-dong 3-ga in Yeongdeungpo District. All 218 units will have an exclusive area of 84 square meters. Residents will have access to Mullae Station on Seoul Subway Line 2; Yeongdeungpo Station on Line 1 and KTX services; Yeongdeungpo-gu Office Station on Lines 2 and 5; and Yeongdeungpo Market Station on Line 5, making it convenient to commute to business districts such as Yeouido, Guro District and Gasan Digital Complex. That same month, HL D&I Halla will bring Gyeonghuigung Epit to market, a redevelopment of Donuimun District 2 in Gyonam-dong, Jongno District. Of its 228 units, 135 will be offered for general sale.
“In Seoul, the number of units available for move-in is declining rapidly, while whenever new apartments are put up for sale, applicants continue to flock in all at once,” an industry official said. “New-builds in prime downtown locations, particularly in the Gangnam area or near business districts, are becoming even scarcer, so this concentration of demand is likely to continue for the time being.”

[email protected] Jeong Gyeong-su Reporter