A Surge in New Apartment Supply in Areas Like Sokcho, Gangwon and Nowon, Seoul, Filled with Aging Apartments

▶As of 2018, approximately 6.49 million apartments nationwide are over 20 years old, accounting for about 60% of all apartments
▶Due to the impact of the price ceiling system and stringent real estate measures, demand for new apartments and competition for investment preemption are expected
▶New apartment supplies continue in urban areas with guaranteed living conditions, such as Sokcho in Gangwon and Nowon in Seoul

Regions such as Sokcho in Gangwon, Nowon in Seoul, Cheongju in Chungbuk, Seongsan in Changwon, and Yeongdo in Busan have been found to have a ratio of aging apartments over 20 years old reaching 60% nationwide. While there is a nationwide boom in new apartments, in some areas, 6 out of 10 households still live in aging apartments.

According to an analysis by real estate research firm Realtoday of Statistics Korea’s data on ‘Types of Housing, Gross Floor Area, and Housing by Year Built (as of 2018),’ the total number of apartments over 20 years old nationwide was 6,499,531 units, accounting for 60% of the total 10,826,044 units. This contrasts with the nationwide housing supply rate of 104.2% as of 2018.

By the 17 metropolitan cities and provinces, Seoul had the highest ratio of apartments over 20 years old at 69%, followed by Jeonbuk (66%), Gangwon (65%), Daejeon (65%), and Busan (64%). Within Seoul, Dobong (94%), Nowon (94%), Yangcheon (81%), Gwangjin (79%), and Yeongdeungpo (78%) had the highest ratios of aging apartments. In Jeonbuk, Wansan (74%), Namwon (73%), Iksan (73%), Jeongeup (72%), and Gimje (72%) ranked highest, while in Gangwon, Inje (92%), Hwacheon (86%), Taebaek (74%), Sokcho (73%), and Gangneung (72%) followed.

The ratio of aging apartments nationwide is expected to increase annually, intensifying the demand for new apartments among consumers. Areas with a high ratio of aging apartments need land to supply new apartments besides redevelopment projects, but recently, regulations such as the private land price ceiling system and stringent real estate measures have been tightening the market.

A Realtoday official stated, “While issues like noise, parking, and safety due to aging apartment facilities can be fixed through repairs, moving to new apartments is the only wise choice to improve the quality of living.” He added, “For areas with a high ratio of aging apartments and their neighboring regions, it is advisable to closely monitor the timing of new apartment sales that guarantee better living conditions and consider switching.”

Until June this year, new apartment supplies will continue in regions where the ratio of apartments over 20 years old exceeds 60%, such as Sokcho in Gangwon, Nowon in Seoul, Cheongju in Chungbuk, Seongsan in Changwon, and Yeongdo in Busan. Since new apartments are supplied in areas with guaranteed living conditions such as education and transportation, they are expected to attract concentrated interest from homebuyers and those looking to relocate.

In Gangwon, Sokcho (73%), which has a high ratio of aging apartments, will see the first new apartment supply by a construction company, making it a good opportunity for those hoping to move to new apartments.

Lotte Construction plans to sell ‘Sokcho Lotte Castle in the Sky’ in June at 436-1 Dongmyeong-dong, Sokcho-si, Gangwon-do. As Sokcho’s first ‘Lotte Castle’ brand complex, it will consist of 8 buildings from basement 2 to 29 floors, with units ranging from 59 to 128㎡, totaling 568 households. All units are mainly south-facing, securing excellent sunlight and openness, and feature facilities such as exercise areas with sea views, matching the competitiveness expected of Sokcho’s first ‘Lotte Castle’ brand complex. Central Elementary School and Haerang Middle School are within a 5-10 minute walk, and Sokcho Central Market (Sokcho Tourism and Fisheries Market) and Rodeo Street are accessible on foot. Nearby amenities include Hanaro Mart, Sokcho City Hall, Chuncheon Regional Police Agency Sokcho Branch, and Sokcho Cultural Center.

In Seoul, new apartments will be supplied in Nowon (94%), which, along with Dobong, has the highest ratio of aging apartments. As the only planned sale complex, demand is expected to be concentrated.

Lotte Construction plans to sell ‘Nowon Lotte Castle Signature’ in June at 95-3 Sanggye-dong, Nowon-gu, Seoul. It will be the first ‘Lotte Castle’ brand complex supplied in Sanggye New Town, consisting of 10 buildings from basement 3 to 29 floors, with units ranging from 21 to 97㎡, totaling 1,163 households, of which 721 will be sold to the general public. The complex is within walking distance of Sanggye Station and Danggogae Station on Subway Line 4, and close to Nowon Station, a transfer station for Line 7. It benefits from transportation developments such as the Northeast Light Rail connecting Sanggye Station and Wangsimni Station (under promotion), the planned extension of Line 4 to Namyangju Jinjeop District, and the planned GTX-C line, improving accessibility to Seoul and the metropolitan area.

In Chungbuk, new apartments will be supplied in Cheongju Sangdang (75%), which has the highest ratio of aging apartments, in a newly emerging residential area, attracting interest from those looking to relocate.

Dongyang Construction Industry plans to sell ‘Cheongju Dongnam Paragon’ in May at Block B-5, Dongnam District, Sangdang-gu, Cheongju-si, Chungbuk. The complex will consist of 6 buildings from basement 3 to 25 floors, with units ranging from 77 to 84㎡, totaling 562 households. An elementary and a high school are scheduled to open adjacent to the complex, and many kindergartens, elementary, middle, and high schools are within walking distance. Nearby facilities include Lotte Cinema and Hanaro Mart, and Chungbuk National University Hospital and Chamsarang Hospital are also close, making access to living conveniences easy.

In Changwon, new apartments will be supplied in Seongsan (79%), which has the highest ratio of aging apartments, for the first time in a while. As a large complex with over 1,000 households, it is expected to have high symbolic value.

Bando Construction plans to sell ‘Seongsan Bando Yubora Ivy Park’ in May at Block Gong 1, Sapa District, Seongsan-gu, Changwon-si. The complex will consist of 17 buildings from basement 3 to 15 floors, with units ranging from 55 to 86㎡, totaling 1,045 households. It will feature Changwon’s first separate learning center within the complex, and within 1 km, there are 7 elementary, middle, and high schools including Sapa Middle and High Schools. Major government offices and convenience facilities such as Gyeongnam Provincial Office, Changwon City Hall, Changwon District Court, Hanmaeum Changwon Hospital, and Seongsan Art Hall are nearby, along with department stores, large marts, and Sangnam Market.

In Busan, a large complex with over 1,000 households will be supplied through redevelopment in Yeongdo (85%), which has the highest ratio of aging apartments.

IS Dongseo plans to sell ‘Dongsam 2 District Aileen’s Garden (tentative name)’ in June through the Dongsam 2 District housing redevelopment in Yeongdo-gu, Busan. The complex will consist of units ranging from 59 to 101㎡, totaling 1,228 households, of which 932 will be sold to the general public. It is adjacent to Dongsam Elementary School and close to Busan International Cruise Terminal, Korea Institute of Ocean Science and Technology, National Maritime Museum, and Korea Maritime and Ocean University.

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