2023-05-09 21:01:49
[뉴스토마토 백아란 기자] ‘Real estate market normalization’
This is one of the 30 key achievements of the national tasks presented by the Yoon Seok-yeol administration, which marked the first year of its inauguration. It is a self-congratulation that the market was normalized by completely lifting all areas except for Gangnam, Seocho, Songpa, and Yongsan in Seoul from regulated areas and announcing measures to ease resale restrictions and real residence obligations.
Previously, the Yoon government fired a signal to ease real estate regulations, such as implementing a temporary suspension of capital gains tax at the same time as the inauguration of the president. However, the construction industry, which was expected to be the biggest beneficiary of the Yoon government, is embroiled in a transaction cliff and liquidity crisis caused by high interest rates, and fears of bankruptcy are becoming a reality.
A view of downtown Seoul. (Photo = Reporter Aran Baek)
In fact, according to the Ministry of Land, Infrastructure and Transport’s Construction Industry Knowledge Information System (KISCON), a total of 1289 construction companies reported closure by the 9th of this month this year, an increase of 21.03% from the same period last year (1065). In particular, the number of reports of closure of general construction companies was 165, a 50% increase compared to the same period last year (110).
Due to interest rate hikes and an increase in unsold pre-sale units, Pan Hyundai has applied for court receivership by HNInc, a mid-sized construction company.
In the case of the construction sector, △expansion of sales risks such as an increase in unsold units △inflation such as construction costs △interest rates and deterioration in financial procurement may have a negative impact.
The trigger (trigger) that raised the crisis is the Legoland incident. This is because the financing window for construction companies was blocked as the securitization market shrank due to the collapse of the Legoland asset-backed commercial paper (ABCP) payment guarantee in the second half of last year.
Due to the nature of the construction industry, there is a large amount of borrowings and constant financing such as PF (Project Finance) is required. However, in a situation where housing buying sentiment is at the bottom due to the burden of rising raw material prices and interest rate hikes, liquidity concerns have been added and financial stability problems have arisen. .
As a result, construction bonds were not sold, and the credit ratings of renowned construction companies such as Lotte E&C, HDC Hyundai Development Company, Hanshin Corporation, and Taeyoung Construction were downgraded, further increasing downward pressure on credit ratings. In addition, while the cost ratio of housing continues to be burdened by rising raw material prices, major construction companies’ operating margins have declined and their debt ratios have increased, failing to achieve qualitative improvement.
Unsold sales are also not resolved. As of the end of March, the number of unsold houses across the country fell to 72,104 in 11 months, but the number of ‘malignant unsold’ houses (8,650 households) that remained unsold even after completion increased by 1.1% from the previous month. because there is
Kim Hyo-seon, chief real estate expert at NH Nonghyup Bank, said, “It is positive that the regulation was completely lifted, but the fact that the supply plan centered on the metropolitan area and the slow implementation speed is accelerating the hyperpolarization of the region and the disappearance of the province, which is a detonator in the real estate market. It can be,” he said.
Kim Jung-joo, head of the Korea Institute of Construction Industry, suggested, “In the process of project financing (PF) insolvency becoming a reality, it is necessary to pay close attention to the possibility that insolvency of financial institutions may trigger and act as an unexpected shock to the market.”
Reporter Baek Ah-ran alive0203@etomato.com
This article was finally confirmed and corrected by Kang Young-kwan, Director of Industry 2, in accordance with the News Tomato Reporting Rules and Code of Ethics.
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