Mid-to-Large Apartments Rare in Provinces... Only 7% of Total Sale Volume

Low Supply of Medium to Large Units
Higher Subscription Competition Rate Compared to Small Units

Preference for mid-to-large-sized apartments is increasing in the local pre-sale market. Demand for spacious and comfortable living spaces is rising, while the supply of mid-to-large-sized apartments remains limited.

According to real estate data from Real Estate R114 on the 26th, the total number of mid-to-large-sized apartments pre-sold in local metropolitan cities over the past five years (March 2018 to March 2023) was 23,351 units. This accounts for only about 7% of the total 329,367 pre-sale units. By region, the supply of mid-to-large-sized apartments over five years was △Gwangju (3,098 units) △Busan (5,321 units) △Ulsan (912 units) △Daegu (11,033 units) △Daejeon (2,987 units).

Due to the limited supply, competition for subscription is fierce. According to Real Estate R114, in the past year, 4,214 mid-to-large-sized apartments (general pre-sale) in local metropolitan cities attracted a total of 42,818 applicants, recording an average competition rate of 10.16 to 1. This was higher than the average competition rate of 7.49 to 1 for small-to-medium-sized apartments in local metropolitan cities during the same period.

In February this year, the ‘Eco Delta City Prugio Rin’ pre-sale in Gangdong-dong, Gangseo-gu, Busan Metropolitan City, recorded the highest competition rate of 25.56 to 1 for mid-to-large-sized units with an exclusive area of 103.21㎡. In October last year, the ‘e-Pyeonhansesang Gunsan Diocean Luce’ in Guam-dong, Gunsan-si, Jeollabuk-do, recorded an average competition rate of 0.75 to 1, while the mid-to-large-sized unit with an exclusive area of 155.94㎡ showed the highest competition rate of 23.67 to 1.

The increase in demand for mid-to-large-sized apartments is attributed to the growing need for spacious and comfortable living spaces after COVID-19 and the lower entry barrier for purchase compared to mid-to-large-sized apartments in the metropolitan area.

In March this year, the average sale price of mid-to-large-sized apartments in the metropolitan area was 28.17 million KRW per 3.3㎡, while the average sale price of mid-to-large-sized apartments in local metropolitan cities was 17.07 million KRW per 3.3㎡, more than 11 million KRW lower than the metropolitan area.

A representative from Four Ad One stated, "While the popularity of mid-to-large-sized apartments in local metropolitan city markets is increasing, the ongoing supply shortage is expected to raise demand interest in pre-sale complexes offering mid-to-large-sized units this year. For those considering mid-to-large-sized complexes, it would be beneficial to focus on branded complexes equipped with various community facilities and specialized floor plans."

Meanwhile, GS Construction plans to pre-sell ‘Sangmu Central Xi’ in May on the former Honam University Ssangchon campus site in Seo-gu, Gwangju Metropolitan City. The complex will consist of 14 buildings ranging from 3 basement floors to a maximum of 30 floors above ground, with a total of 903 units sized between 84 and 247㎡. All units will be mid-to-large-sized. The complex is located near Uncheon Station on Gwangju Subway Line 1, and the nearby Sangmu Station is planned to be a transfer station for Gwangju Subway Line 2, scheduled to open in 2026.

Hoban Construction plans to pre-sell ‘Hoban Summit Golden Sky’ in April in Hwanggeum-dong, Suseong-gu, Daegu Metropolitan City. This complex will consist of 6 buildings ranging from 5 basement floors to 43 floors above ground, with a total of 677 apartment units sized between 84 and 150㎡ and 146 officetel units. It is located near Hwanggeum Station on Subway Line 3, with elementary, middle, and high schools all accessible by walking.

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