HUG designates five regions as October unsold-housing management areas
In short
The Korea Housing and Urban Guarantee Corporation (HUG) designated Incheon Yeongjong-gu, Gyeonggi Osan, Busan Gangseo-gu, South Chungcheong Cheonan and North Gyeongsang Gyeongsan as unsold-housing management areas for October. Gangwon Gangneung was released from the list, while Osan and Gyeongsan were newly added. Unsold homes in the five areas totalled 11,235 households as of August, 16.2% of the national total, HUG said.
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The Korea Housing and Urban Guarantee Corporation (HUG) said on October 7 that it had designated five regions as unsold-housing management areas for October: Incheon Yeongjong-gu, Gyeonggi Osan, Busan Gangseo-gu, South Chungcheong Cheonan and North Gyeongsang Gyeongsan. Gangwon Gangneung was released from the list, while Osan and Gyeongsan were newly designated, according to Yonhap and the Seoul Economic Daily. [ 1 , 3 ]
A district is selected if it has 1,000 or more unsold homes and unsold units equal 2% or more of its apartment stock, and meets one of three conditions: rising unsold units, slow clearing of unsold units, or concern over unsold units, the two outlets reported. [ 1 , 3 ]
In the designated areas, developers must undergo a pre-screening to obtain a sale guarantee. The Seoul Economic Daily said this makes new supply difficult because the guarantee is needed for real-estate project financing. [ 1 , 3 ]
Unsold homes in the five management areas totalled 11,235 households as of August, or 16.2% of the national total, HUG said. The Korea Economic Daily reported in its headline that unsold homes in Osan rose by 1,800 households over two months; the other documents do not give that figure. [ 1 , 2 , 3 ]
The designation list is the only development the documents describe as new for October; no further changes to the criteria or to the status of the other regions are stated. [ 1 , 3 ]
Why it matters
Projects in the designated areas must pass a pre-screening to obtain a sale guarantee, a step the documents link to difficulty in bringing new supply to market. The list concentrates on five districts that together hold a sixth of the country's unsold apartments, indicating where inventory is piling up.
Key facts
- HUG designated Incheon Yeongjong-gu, Gyeonggi Osan, Busan Gangseo-gu, South Chungcheong Cheonan and North Gyeongsang Gyeongsan as October unsold-housing management areas. [ 1 , 3 ]
- Gangwon Gangneung was released from the management list, while Osan and Gyeongsan were newly designated. [ 1 , 3 ]
- A district qualifies if it has 1,000 or more unsold homes and unsold units equal 2% or more of the apartment stock, and meets one of the criteria of rising unsold units, slow clearing, or concern over unsold units. [ 1 , 3 ]
- In designated areas, a pre-screening is required to obtain a sale guarantee; the Seoul Economic Daily said this makes new supply difficult. [ 1 , 3 ]
- Unsold homes in the five management areas stood at 11,235 households as of August, 16.2% of the national total. [ 1 , 3 ]
- The Korea Economic Daily reported that unsold homes in Osan rose by 1,800 households over two months. [ 2 ]
Confirmed by several sources
- Five regions were designated as October unsold-housing management areas: Incheon Yeongjong-gu, Gyeonggi Osan, Busan Gangseo-gu, South Chungcheong Cheonan and North Gyeongsang Gyeongsan. [ 1 , 3 ]
- The designation criteria are 1,000 or more unsold homes, unsold units at 2% or more of the apartment stock, and one of three conditions on rising, slow-clearing or concerning unsold inventory. [ 1 , 3 ]
- Gangwon Gangneung was removed from the list; Osan and Gyeongsan were newly designated. [ 1 , 3 ]
- Unsold homes in the five areas totalled 11,235 households as of August, 16.2% of the national total. [ 1 , 3 ]
- Sale guarantees in the designated areas require pre-screening. [ 1 , 3 ]
Still unclear
- Unsold homes in Osan rose by 1,800 households in two months. This figure appears only in the Korea Economic Daily headline, with no supporting detail in the article text and no mention by the other outlets.
- The number of months for which the designation applies and any change to the criteria. The documents describe the October list but do not state how long a designation lasts or whether the criteria were revised.
What local media are saying
Timeline, local time
- Yonhap reports that HUG designated five regions as October unsold-housing management areas and released Gangneung. [ 1 ]
- The Korea Economic Daily reports on the 11,235 unsold homes in the management areas and a 1,800-household rise in Osan over two months. [ 2 ]
- The Seoul Economic Daily reports the five-region designation and notes that pre-screening makes new supply difficult. [ 3 ]