"New Apartments with High Scarcity in Military Areas, 8,200 Units to be Supplied Within the Year"

Apartment Supply in Military Areas Accounts for 3% of National Volume Over the Past 5 Years
New Apartment Supply Awaited in Wanju, Yangpyeong, Gapyeong, and Others

[Asia Economy Reporter Yuri Kim] Over 8,200 households are preparing to be supplied in county (gun) areas for the remainder of this year. Compared to cities (si), the scarcity of new apartments is higher and the impact of real estate regulations is less, attracting interest from those looking to buy their own homes.

According to Real Estate Info on the 6th, a total of 8,252 households are scheduled to be supplied in 11 counties nationwide (excluding counties within metropolitan cities) from September to December. By region, Jeonbuk leads with 3,295 households (Wanju-gun), followed by Chungnam with 2,054 households (Yesan-gun, Buyeo-gun), Gyeonggi with 1,654 households (Yangpyeong-gun, Gapyeong-gun), and Jeonnam with 1,249 households (Muan-gun, Wando-gun).

In county areas, apartments are supplied through large-scale land development and urban development projects rather than redevelopment projects. Therefore, the industry explains that the scarcity value of new apartments is high. According to Real Estate Info’s survey, the supply of apartments with 100 or more households in county areas (excluding counties within metropolitan cities) over the past five years (2015?2019) was about 49,000 households, which is only about 3% of the total supply (approximately 1.58 million households) during the same period. This is significantly lower than the household ratio of county areas nationwide (8.7%) announced by Statistics Korea (as of 2019).

These areas are excluded from regulated areas, so they are free from various real estate regulations. If the subscription savings account has been held for more than six months and the deposit amount is met for each housing type, first-priority qualification is granted. There are no restrictions on re-winning, and loan regulations are relatively lighter. It is also possible to resell the pre-sale rights after the contract.

County areas also show a relatively high price increase centered on branded apartments. The scarcity of most areas being the first branded construction company complexes drives the rise in housing prices. The 84㎡ (exclusive area) unit of Geochang Prugio in Geochang-gun, Gyeongnam (moved in January 2018) was traded for 340 million KRW in July, rising by more than 100 million KRW compared to two years ago. Hills State Hwasun in Hwasun-gun, Jeonnam was priced at 292 million KRW (84㎡) at the time of sale in 2018 but was actually traded for 328.12 million KRW in August this year.

Kwon Il, head of the research team at Real Estate Info, said, "As apartment subscription fever spreads nationwide, new housing sales are actively continuing even in county areas where supply has been scarce. Since the number of first-priority subscription savings accounts in county areas is limited, although the subscription competition rate will not be dozens to one like in large cities, subscription savings accounts saved by local residents will come out."

This month, Daewoo Construction will supply Wanju Prugio The First in Sam Bong District B-2 Block, Wanju-gun, Jeonbuk. It is the first branded apartment in the area and the first private sale apartment in Sam Bong District, with a total of 605 households ranging from 72 to 84㎡. Hanwha Construction will also sell Forena Yangpyeong in Yangpyeong-gun, Gyeonggi, in the same month. It consists of 438 households ranging from 59 to 84㎡. Bando Construction is also planning to supply 740 households ranging from 59 to 84㎡ in Block 1 of Damun District, Yangpyeong-gun in the second half of the year. In December, Daelim Industrial is scheduled to supply a total of 476 households in Daegok District, Gapyeong-gun.

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