Daejeon 'Mid-sized Apartment' Average Sale Price Surpasses 300 Million KRW... First Among 6 Major Metropolitan Cities

[Asia Economy Reporter Donghyun Choi] Last month, the average sale price of mid-sized apartments (exclusive area between 62.9㎡ and 95.9㎡) in Daejeon surpassed 300 million KRW for the first time among the six major metropolitan cities.

On the 25th, real estate market analysis firm Economy Man Lab surveyed housing price trends from KB Real Estate Live On and found that the average sale price of mid-sized apartments in the six major metropolitan cities last month was 285.87 million KRW, a 4.28% increase compared to 274.14 million KRW in the same period last year.

The city with the highest increase in average sale price for mid-sized apartments was Daejeon. In 2018, the average sale price of mid-sized apartments in Daejeon was 227.26 million KRW, the lowest among the six major metropolitan cities. However, it surpassed 251.69 million KRW in February last year and recorded 301.55 million KRW this year. Thus, the average sale price of mid-sized apartments in Daejeon surged by an astonishing 32.69% over two years.

During the same period, the average increase rate of mid-sized apartment prices in the other five cities excluding Daejeon was 3.89% as of February this year. The city with the second highest increase rate after Daejeon was Gwangju. The average sale price of mid-sized apartments in Gwangju was 227.84 million KRW in February 2018, but rose 15.22% to 262.51 million KRW in February this year. Following that, Incheon rose 7.15% from 266.18 million KRW to 285.20 million KRW, Daegu increased 3.46% from 275.75 million KRW to 285.30 million KRW, and Busan rose 0.90% from 293.85 million KRW to 296.50 million KRW. In Ulsan, which is experiencing regional economic stagnation, the average sale price of mid-sized apartments fell 7% from 256.85 million KRW in February 2018 to 238.89 million KRW.

This rising trend in apartment prices in Daejeon has also spread to the pre-sale market. For example, the 84㎡ (exclusive area) units of ‘Daejeon I-Park City Phase 1’ in Bogyong-dong, Yuseong-gu, Daejeon, which were pre-sold in March last year, had a pre-sale price of about 500 million KRW. However, after the resale restriction was lifted in October last year, premiums of 100 to 200 million KRW started to be added, and this month, the 84㎡ units were traded at 839 million KRW, marking a premium of up to 339 million KRW compared to the pre-sale price.

The 84㎡ units of ‘Daejeon Gapcheon 3 Block Triple City,’ pre-sold in July 2018, had a pre-sale price of about 390 million KRW, but were traded at 640 million KRW in March this year, reflecting a premium of 250 million KRW over the pre-sale price.

Given this situation, buying sentiment for apartments in Daejeon has also heated up. Last month, Daejeon’s buyer dominance index was 100.1, the only one among the six major metropolitan cities to exceed 100. In comparison, Incheon was 76.5, Ulsan 74.0, Daegu 67.6, Gwangju 35.1, and Busan 32.0.

The buyer dominance index is based on a survey of KB Real Estate member brokerage offices and ranges from 0 to 200. A value above 100 indicates 'more buyers,' while below 100 indicates 'more sellers.' In Daejeon’s case, there are more buyers than sellers, leading to an atmosphere of rising asking prices.

Oh Daeyeol, head of the research team at Economy Man Lab, said, “Although the housing market is generally cooling due to government real estate regulations, Daejeon continues to be excluded from regulations except for monitoring announcements by the government, causing apartment prices to keep rising.”

This content was produced with the assistance of AI translation services.