Over 88,000 Households for Sale This Year... Which Are the Prime Complexes in Regional Metropolitan Cities?

Apartment Prices in Regional Metropolitan Cities Rise 38.73% Over Past 2 Years... 32.80%p Higher Than Previous 2 Years
New Apartments Form 200M~300M KRW Premium Based on Strong Pending Demand
March Daewoo E&C Ulsan Nam-gu 'Prugio', April SK Ecoplant Busan Haeundae-gu 'SK View' Attract Attention

[Asia Economy Reporter Kangwook Cho] This year, approximately 88,000 households are expected to be supplied in the five major provincial metropolitan cities. These provincial metropolitan cities have recorded the highest home price increase rates in history over the past two years, and there is continued interest as many prime complexes are also being supplied this year.

According to real estate information company Real Estate Info on the 20th, a total of 88,061 apartment units (including pre-sold units) are expected to be supplied in the five major provincial metropolitan cities this year. This is more than double the 35,617 units supplied in the same regions last year. It is analyzed that the volume has significantly increased as the pre-election cautious market that continued since last year has ended. By region, the supply is △Daegu 25,630 units △Busan 24,127 units △Daejeon 15,079 units △Ulsan 13,117 units △Gwangju 10,108 units.

The provincial metropolitan cities have recorded the highest home price increase rates in history over the past two years. According to data from Real Estate R114, apartment prices in the five major provincial metropolitan cities rose by 38.73% from 2020 to 2021. This is 32.8 percentage points higher than the 5.93% increase over the two years from 2018 to 2019.

In particular, premiums of several hundred million won are being formed mainly on new apartments. The pre-sale right for an 84㎡ unit at ‘Ulsan Munsuro Doosan We've the Zenith’ located in Sinjeong-dong, Nam-gu, Ulsan, was traded last month for 791.61 million won, rising more than 280 million won above the pre-sale price. The 84㎡ unit at ‘Centum KCC Switzen’ supplied in Banyeo-dong, Haeundae-gu, Busan, was traded for 765.8 million won in July last year, forming a premium exceeding 300 million won over the pre-sale price.

Meanwhile, at the end of this month, Daewoo Construction will start supplying ‘Munsuro Prugio Urban Peace’ in Sinjeong-dong, Nam-gu, Ulsan, and in April, SK Ecoplant will supply in Haeundae-gu, Busan. In Daejeon Seo-gu, Hanwha Construction is preparing for supply in the first half of the year, and in Gwangju Dong-gu, Hyerim Construction is also preparing for supply in the first half.

Perspective view of Munsu-ro Prugio Urban Peace / Provided by Daewoo E&C.

Real Estate Info’s Research Team Leader Il Kwon said, “Despite regulations, tens of thousands of applicants are flocking to prime supplies within large provincial metropolitan cities,” adding, “Except for some regions where oversupply is mentioned, most areas have abundant latent demand, so interest in new supplies remains strong.”

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