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The number of unsold apartments in South Korea posted the fastest monthly increase in November 2015, indicating a home glut amid rising concerns about the property market slump, a government report showed Wednesday.
Unsold apartments nationwide jumped by 17,503 in November, the state-run Korea Development Institute said in its report for the fourth-quarter housing market situation. It marked the highest monthly growth since the agency began compiling the data in 2000.
The figure boosted concerns that the country's real estate market may have fallen into a slump that may lead to an abrupt decline in prices of property, which accounts for about two thirds of total assets for households.
During the October-December period, 190,000 apartments were provided for sale, up 48 percent from a year ago. For the whole year of 2015, about 520,000 apartments were on sale, almost doubling an average of 270,000 from 2000 to 2014.
The agency forecast a supply of 74,270 apartments on sale in the first quarter of this year, up 58.9 percent from a year earlier.
The increase in unsold apartments was attributed to concerns about future fall in housing prices. The supply glut may boost such concerns, resulting in a sudden slump in the property market.
Construction companies are expected to suffer from financial troubles due to the unsold apartments, and it could dent sentiment in the overall real estate market.
The government plans to restructure fragile industries, particularly construction, shipbuilding, steel and oil-refining sectors. Detailed restructuring plans are forecast to be announced after the April general election ends.
