Abundant New Apartment Supply Amid Rising House Prices in Non-Regulated Areas

56,000 Households Waiting in Cheonan Pungse, Chungbuk Jincheon, Jeonbuk Gunsan, and Gyeongnam Geochang Areas

[Asia Economy Reporter Kim So-young] As real estate regulations have been strengthened and most of the metropolitan area has been designated as regulated zones, a large volume of pre-sale units is flooding the non-regulated areas. This phenomenon is caused by the rising sales prices observed in non-regulated areas such as Asan in Chungnam and Dongducheon in Gyeonggi.

According to industry sources on the 4th, out of a total of 236 cities, counties, and districts nationwide, 49 are designated as speculative overheated districts, and 111 are designated as adjusted target areas. As a result, apartment prices in cities outside these regulations are showing an upward trend due to the so-called 'balloon effect.'

According to KB Real Estate, from the end of December last year to the end of March this year, the apartment sales price per 3.3㎡ in Asan, Chungnam, rose by 11.9% (from 5.87 million KRW to 6.57 million KRW). During the same period, Gyeonggi Dongducheon rose 13.8%, Gyeongnam Yangsan 10.2%, and Gyeongbuk Pohang-si Buk-gu 10.8%, all recording high growth rates.

The rising prices of existing homes in non-regulated areas are leading to an increase in new pre-sale supply. More construction companies are quickly preparing new supply units. This move is based on the expectation that pre-sale apartments will also gain popularity, supported by the rising prices of existing homes. Housing supply entities are targeting the psychology of buyers who expect a premium above the market price.

Photo by KB Real Estate

According to Real Estate Info, about 56,000 households are planned to be supplied in non-regulated areas from the second quarter through the end of this year. This is 7,000 more units than the approximately 49,000 units supplied in the same period last year in the same areas.

Representative pre-sale units include 'Cheonan Hanyang Sujain Eco City' in Pungse District, Cheonan, Chungnam; 'e-Pyeonhansesang Jincheon Royal Heim' in Jincheon, Chungbuk; 'Gunsan Hosu Park I-Park' in Gunsan, Jeonbuk; 'The Sharp Geochang Porciel' in Geochang, Gyeongnam; and 'Pocheon Kumho Eoullim Central' in Pocheon, Gyeonggi.

An industry official explained, "House price strength is appearing more in areas with looser regulations than in places where regulations are strongly applied, and buyers are closely watching these movements. Construction companies are also preparing to release pre-sale apartments that have been held back and are engaging in marketing efforts."

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