Unsold homes surge outside metro

[Anchor]

The number of unsold homes shows no signs of decreasing.

In particular, there has been a sharp increase in unsold properties in regions outside the metropolitan area, where construction has been completed but sales have not occurred.

The fact that Shindonga Construction has applied for court receivership is causing a sense of crisis in the construction industry.

Reporter Yoon Ah-rim has the details.

[Report]

A mixed-use apartment complex being built by Shindonga Construction.

It is scheduled for occupancy in July next year, but construction has been halted since Jan. 6.

[Construction Worker/Voice Altered: "(The construction) should obviously be halted. They said they applied for court receivership. The companies won't proceed."]

This apartment complex is 65% unsold.

With the construction halted, it has become difficult for the households that purchased units to avoid delays in moving in.

As several projects remain unsold, ShindongaConstruction ultimately could not overcome its financial difficulties.

[Shindonga Construction Official/Voice Altered: "There are several sites with unsold units. In the case of the Jinju Station townhouses, construction is complete, but sales have hardly occurred, leading to outstanding payments..."]

An apartment complex in Paju, Gyeonggi Province, which is still in the early stages of construction.

Out of over 700 units available, only 125 have applied, resulting in more than 80% shortfall.

[Real Estate Official/Voice Altered: "With the existing population, demand is limited, and there are almost no new residents coming in. We need people from outside, but they are not coming."]

The number of unsold homes nationwide has not decreased since surpassing 60,000 in 2022.

The situation is even more serious in the provinces.

The number of unsold homes after construction is completed, which is likely to become 'chronic unpaid money,' is increasing, with about 80% occurring outside the metropolitan area.

[Local Construction Official/Voice Altered: "Construction companies are mostly in a wait-and-see position. There's no guarantee that a second Shindonga won't emerge."]

The government's tax benefits, such as acquisition tax reductions to reduce unsold homes in the provinces, are also questioned for their effectiveness.

[Local Construction Official/Voice Altered: "The overall housing prices aren’t dropping. Only additional costs are being reduced. I don’t think this will have a significant impact."]

Last year, 29 construction companies went bankrupt, 25 of which were located outside the metropolitan area.

This is KBS News, Yoon Ah-rim.