New Apartments Selling Below Pre-Sale Price by Up to 70 Million Won

At new apartment complexes in Chuncheon, 'minus premium' listings—units offered for up to 70 million won below the pre-sale price—are appearing one after another. A minus premium means the unit is sold for less than its original pre-sale price. Resale of purchase contracts is continuing even in complexes where move-ins are imminent. A new apartment under construction nearby is in a similar situation. Resale listings have already appeared for this complex, scheduled for occupancy in June next year. A purchase contract for an 84-square-meter unit is being traded at about 33 million won below the pre-sale price.

The reason sellers are offloading units at losses of tens of millions of won is financial pressure. Jung Hwa-ok, head of the Chuncheon branch of the Korea Certified Realtors Association, explained: "Due to financial pressure, buyers lack the funds needed for move-in and are rushing to sell even at losses of tens of millions of won."

The spread of minus premiums is largely attributable to tightened lending. Bank loan regulations have made it difficult to secure the final payment, and with existing homes failing to sell in time, raising move-in funds has become virtually impossible. Ham Young-jin, head of Woori Bank's Real Estate Research Lab, said, "Given the backlog of unsold homes in the Gangwon region, minus premiums are expected to continue for the time being."