Hot Ulsan Real Estate... Now Is the Best Timing to Buy Your Own Home

- Ulsan Real Estate Boom Continues... Significant Increase in Supply and Subscription Competition Rates Compared to Last Year
- Apartment Prices Rise Sharply with New Record Highs Being Set One After Another

Ulsan is establishing itself as a core player in the local housing market. Various real estate indicators are showing an upward trend, and the industrial economy that supports the Ulsan regional economy is also recovering. In particular, buying a newly built apartment is considered the most rational way to own a home, leading to a flood of inquiries for newly supplied complexes.

According to Real Estate 114, Ulsan's apartment supply was 'zero' in 2018 but resumed the following year with 1,027 units. Last year, the number of units supplied soared to 4,463, more than four times the previous year, signaling the start of a full-fledged boom. The first-priority subscription competition rate also jumped more than sevenfold from 2.6 to 1 in 2019 to 20.3 to 1 in 2020.

Apartment prices continue to rise as well. According to the Korea Real Estate Board, apartment prices have been on an upward trend from October 2019 to April 2021. In particular, prices rose by 2.08% and 1.14% in January and February respectively, surpassing the local region's increases of 1.17% and 0.94% during the same period.

Record-high prices are also being set. In Nam-gu, the 'Munsuro 2nd I-Park (Complex 2)' with an exclusive area of 84㎡ was traded at 1.19 billion KRW in October last year, setting a new record. The current asking price is around 1.25 billion KRW. Similarly sized units in 'Okdong Daegongwon Hanshin The Hue' were sold for 1.105 billion KRW in November last year, setting a record, and maintained prices above 1 billion KRW with a sale at 1.03 billion KRW in February this year.

This heated Ulsan real estate market momentum seems to be extending to the recent pre-sale market. The 'Munsuro Daegongwon Eilin's Garden' launched in October last year attracted 18,280 applicants for first-priority subscriptions, achieving a competition rate of 309.8 to 1, the highest ever in Ulsan.

Following that, all four complexes pre-sold in Ulsan this year were fully subscribed in the first priority round. A representative hot spot is IS Dongseo's 'Ulsan New City Eilin's Garden Phase 1 (803 units)'. After all types were fully subscribed, contract closures are now imminent. Together with the upcoming Phase 2, it will form a large complex of 1,947 units. The 'Yuldong District Hanshin The Hue', which received first-priority subscriptions on the 11th, recorded an average competition rate of 14.5 to 1.

Moreover, the recovery of industries supporting the Ulsan economy is expected to further fuel the pre-sale market within the year. The shipbuilding industry, the backbone of Ulsan's economy, has shaken off downturns by ranking first in global ship orders for three consecutive years (2018?2020). According to Clarkson Research, a UK-based shipbuilding and shipping analysis firm, Korea's ship orders last year totaled 8.19 million CGT, accounting for 43% of the global ship order volume of 19.24 million CGT, the highest worldwide.

Additionally, expectations for improvements in manufacturing sectors such as automobiles and petrochemicals are rising due to stabilization in export markets. A survey by the Ulsan Chamber of Commerce and Industry on member companies' business outlook index (BSI) for the second quarter showed that the outlook for the automobile and petrochemical sectors rose by 41 and 5 points respectively from the previous quarter, reaching 100 and 95.

Especially, with pre-sale prices continuing to rise, buying early is considered the best strategy for home ownership. Analysis of data from the Housing and Urban Guarantee Corporation (HUG) shows that the average pre-sale price of apartments in Ulsan (exclusive area 60?85㎡) in March this year increased by about 46% compared to a year earlier. Notably, buyers in their 30s stand out. According to the Korea Real Estate Board's apartment transaction data, the proportion of apartment buyers in their 30s and 40s in Ulsan this year exceeded 30%.

A real estate expert said, "The Ulsan real estate market is maintaining a favorable trend, and since the pre-sale market is influenced by the local industrial economy, the positive conditions in shipbuilding and manufacturing suggest that the real estate boom will continue for 2 to 3 years. Starting in July, the DSR 40% rule will apply to apartments priced over 600 million KRW in regulated areas, so apartments supplied in non-regulated areas with less stringent purchase conditions are expected to become more popular."

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