Global Economic Times

Gyeonggi-do Housing Market Freezes Over Since New Year... Concerns Over Prolonged Contraction Due to Possible Early Presidential Election: Hwang Sujin Reporter / Updated : 2025-02-12 10:02:31

January Private Housing Supply Plummets 84.5% Compared to Last Year

The Gyeonggi-do housing market has frozen over since the new year. It has been found that the number of private apartments for sale in Gyeonggi-do last month has drastically decreased compared to the previous year. Concerns are growing that the contraction of housing supply will be prolonged due to the unstable domestic and international political and economic situation.

According to the Cheongyak Home of the Korea Real Estate Agency on the 10th, a total of 5 private apartment complexes, with 2,117 households, announced move-in recruitment in the province from the 1st to the 31st of last month. Among them, the supply of private housing excluding public housing for sale in Goyang Changneung District and the main subscription for New Hope Town is limited to 2 places, 325 households. More than 80% of the sales in January are national housing units.

Compared to a year ago, the supply itself has decreased. In January of last year, a total of 4 complexes, all private housing, with 2,099 households announced move-in recruitment in the province. Looking at the supply of private housing alone, it plummeted by about 84.5% compared to the same month of the previous year.

January is usually considered an off-season in the housing market, but this year's decrease in supply is particularly noticeable. Looking at the housing construction sales performance of the Ministry of Land, Infrastructure and Transport, the supply of housing in Gyeonggi-do is ▲4,314 cases in January 2021 ▲8,172 cases in January 2022 ▲713 cases in January 2023 ▲2,099 cases in January 2024. This is the smallest supply since 2023, when the real estate market was on a downward trend.

The atmosphere is not bright in February either. 'Zigbang', a domestic real estate platform, announced that the expected supply of housing in Gyeonggi-do in February is 2,071 households. Although about 10 days have passed in February, there is only one recruitment announcement currently posted on Cheongyak Home. Even this is a small supply of 39 households, the remaining units after the priority sale conversion.

It seems that the growing uncertainty in domestic politics and economy due to the possibility of an early presidential election following martial law and impeachment is having an impact. The construction industry plans to gradually start selling in areas with excellent business feasibility after watching the possibility of a presidential election. An official from the construction industry said, "A presidential election acts as a negative factor in the housing market. Once the election is confirmed, it is difficult to promote sales itself." "The industry conditions are not good due to the rise in construction materials and labor costs, and the demand for subscriptions has decreased. We have no choice but to establish a sales plan focusing on verified business sites."

Experts also diagnose that the housing market will be 활력을 다시 once the political situation stabilizes. Seo Jin-hyung, head of the Korea Real Estate Management Association and professor of Real Estate Law at Kwangwoon University, said, "(In a situation where the possibility of an early presidential election is growing) Supply is expected to increase only when measures to 활성화 택지 and redevelopment and reconstruction related to housing supply are more clearly presented. This is only possible once the political situation stabilizes." "The government must implement policies that can ensure a stable supply by region and time."