No. of unsold new homes in Korea down for 5th month in July

[Photo by Kim Ho-young]

The number of unsold new apartments in South Korea fell for a fifth straight month in July, with the number of unsold homes after completion shifting to a downward trend for the first time in 9 months.

According to statistics released by the Ministry of Land, Infrastructure, and Transport on Thursday, the total number of unsold homes nationwide stood at 60,887 units in July, down 5 percent from June. It is the fifth straight month of decline after reaching a peak of 75,438 units in February.

The number of unsold home units after completion also fell in July, the first in nine months since October, with the count dropping by 358 units to 9,041 units.

Unsold apartments after completion are homes that have finished construction but remain unsold even after occupancy has started.

The housing market, in the meantime, remained weak in July.

The total number of housing transactions came to 48,170 units nationwide in July, down 8.4 percent from the previous month.

“Potential home buyers are turning attention to newly constructed apartments instead of pursuing higher-priced properties,” said Park Hap-soo, an adjunct professor at the Graduate School of Real Estate Studies at Konkuk University. “The increasing demand for unsold units also reflects concerns about insufficient future supply due to weak licensing and construction performance.”