Surging concerns over unsold apartments in provinces

Surging concerns over unsold apartments in provinces. February. 15, 2018 07:41. by Ho-Sung Cheon thousand@donga.com.
“Warning sign over unsold apartments” emerged in the condominium market in local areas. Despite the buoyant market season, three out of 10 apartments are left unsold in the regions where housing supply is concentrated, such as Busan City, South Gyeongsang Province and South Chungcheong Province.

Among 61 cities and towns nationwide where houses were set for sales, the rate of housing contracts fell below 70 percent in 18 regions during the third quarter of last year, according to the data Rep. Lee Won-uk of the Democratic Party of Korea, a member of the National Assembly’s Land Infrastructure and Transport Committee, acquired from the Korea Housing & Urban Guarantee Corporation on Wednesday.

Regions where concerns grew over unsold apartments expanded by two folds during the third quarter, while housing contract rate for all regions except only eight places had exceeded 70 percent during the second quarter.

The housing contract in the beginning phase is the rate during the first three to six months after houses are put on sale. The construction industry regards the sales of apartments to be successful when the rate exceeds 70 percent.