[Series]"It's Still Not Time to Buy in Gwangju Real Estate... No Clear Signs of a Rebound Yet"

Outlook for Gwangju Real Estate from Field and Academia

Kyungsoo Roh: "Restructuring Around End-Users, Impact of Massive New Supply"

"Vacancies in Older Apartments Deepening... Monitor for an Uptick in Transaction Volume"

Professor Kyungsoo Noh of the Department of Real Estate at Gwangju University is conducting an interview on the afternoon of the 4th at the 1st floor of Hosimgwan, Gwangju University. Photo by Min Hyunki

In 2026, the Gwangju real estate market continues to experience an unrelenting freeze. The government's policy focus on end-user demand, combined with a massive influx of over 10,000 new housing units, has caused buying sentiment to plummet. Both academics and field experts diagnose that additional downward pressure will persist for the time being, advising a 'wait-and-see' approach to monitor transaction volume trends, rather than making hasty purchases.

"Demand Suppression Policies and a Surge of New Supply... The Market Will See a U-Shaped Recovery"

On the afternoon of the 4th, Professor Kyungsoo Roh from the Department of Real Estate at Gwangju University described the current market as 'a period of massive restructuring focused on end-users.' Professor Roh explained, "The Jae-myung Lee administration has strongly signaled policies centered on real demand and blocked speculative demand, which has significantly shrunk transaction activity." He added, "The stagnation in the capital region, where capital is tied up, has had an even greater negative impact on local markets."

The large-scale influx of new housing units slated for this year and 2028 is the biggest ticking time bomb for the market. Professor Roh said, "Due to this supply bomb, the market will show a 'U-shaped' recovery curve," and predicted, "With young people preferring new builds, the vacancy problem for older apartment complexes will spiral out of control." However, he also projected that areas with excellent school districts and living conditions, such as Bongseon-dong in Nam-gu and Suwan District in Gwangsan-gu, will experience clear, localized polarization, with prices defended by unique class-based demand and local pride.

On the 5th of last month, a notice stating "No Access to Dangerous Buildings" was posted on the wall of the redevelopment area in Gwangcheon-dong, Seo-gu, Gwangju. The redevelopment site is a project worth approximately 3 trillion won, planned to include up to 45-story apartment buildings, auxiliary facilities, parks, and will comprise about 5,000 households. Photo by Min Hyunki

He also touched on changes in demographic structure and institutional frameworks. As the proportion of single-person households—including not only young people but also the elderly—approaches 40%, the housing market in Gwangju and Jeonnam is increasingly being targeted toward smaller units.

He further predicted that the traditional jeonse (lump-sum deposit lease) system will gradually become less common. Since jeonse is premised on rising home prices, in a situation where price growth momentum is weakening and high interest rates persist, Professor Roh explained that the market will likely shift toward monthly rentals or 10-year long-term leases offered by construction companies needing immediate cash flow.

In contrast, he highlighted the potential impact of 'the integration of Gwangju and Jeonnam provinces' as a key variable for a rebound in real estate prices. He emphasized, "Positive factors such as subway station areas alone cannot absorb the current glut of supply," and added, "The annual budget support of 4 trillion won and public institution relocations resulting from the provincial integration will act as a powerful catalyst to stimulate demand by creating new jobs."

Professor Roh advised end-user homebuyers without properties, "You should wait thoroughly when it comes to timing your purchase." He continued, "Ultimately, the leading indicator of a home price rebound is transaction volume," and urged buyers to "monitor changes in transaction volumes for each district, as announced monthly by the Ministry of Land, Infrastructure and Transport, and wait for clear signs of market recovery before making a move."

He further stated, "To overcome this complex and high-risk period of stagnation, it is urgent for Gwangju to establish a professional real estate data research institute. Public institutions need to consistently build and simulate data to enhance policy effectiveness."

Field Brokers Also Sigh..."Transactions Have Disappeared, and Preference for New Builds Is Intensifying"

A view of the sluggish redevelopment site in Singadong, Gwangsan-gu, Gwangju. Photo by Kim Wanjung

The sentiment in the field closely mirrored the academic diagnosis. Realtor A, who has been operating in Chipyeong-dong, Seo-gu, Gwangju for 30 years, confessed, "The transaction cliff we feel on the ground is much more severe than what the statistics show."

Realtor A explained, "While some urgent sales by multi-homeowners are occasionally appearing due to increased property tax burdens, buyers have completely closed their wallets because of concerns about interest rate burdens and fears that prices will drop further." He added, "The gap between the prices sellers are holding out for and the prices buyers are willing to pay is so large that normal transactions have virtually disappeared."

He also expressed concern about the crisis facing older apartment complexes as buyers increasingly prefer new builds. Realtor A said, "Young people preparing for marriage or newlyweds exclusively seek new-build jeonse or clean private rentals and do not even consider older apartments. As a result, it is increasingly common for people to be unable to sell their old apartments in time to pay the balance for new-build move-ins, causing a chain of negative effects."

He further advised, "For end-user buyers in their 30s with limited financial resources, I strongly recommend remodeling a 15-year-old apartment in a well-developed city center area, purchased at a bargain price, rather than taking out excessive loans to chase new builds in the suburbs." He concluded, "For now, we all need to closely monitor the market until transaction volumes hit rock bottom and show meaningful signs of an upward trend."

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