Ulsan Real Estate Heats Up... Sharp Price Increase Centered on New Apartments

- New Apartment Prices Soar Within 5 Years of Move-In... Premiums Over 100 Million Won Common for Pre-Sale Rights
- 'Ulsan New City Eilin's Garden Phase 1' Fully Contracted 100%

This summer, the Ulsan real estate market is showing unprecedented signs of being 'hot.' The jeonse (long-term lease) market has been in short supply and on the rise for nearly two years, while apartment prices, which had stalled, are increasing sharply led by new complexes. Experts predict, "The real estate market will heat up even more starting this summer."

Ulsan Real Estate Market Shows 'Green Light'... Sharp Price Increases Centered on New Apartments

Currently, the Ulsan real estate market shows a clear upward trend. According to the weekly apartment price trend data from the Korea Real Estate Board, as of the third week of June (June 21), Ulsan's jeonse prices rose by 0.22% compared to the previous week. This marks the 92nd consecutive week of increases since the fourth week of September 2019.

Sales prices are also jumping. In the third week of June, Ulsan apartment sales prices increased by 0.18% compared to the previous week. Although the rate of increase narrowed during mid-May, it rebounded from the end of May (0.10%) and has risen for three consecutive weeks.

As the Ulsan real estate market revives, the demand for new housing is also heating up. The photo shows a perspective view of Ulsan New City Eilin's Garden, a large complex consisting of a total of 1,770 households. The first phase of sales (803 households) has been fully sold out.

The main factor behind this favorable trend in the Ulsan real estate market is price increases centered on new apartments. According to Real Estate 114 (Labs), in May this year, the price per 3.3㎡ of newly built apartments (1 to 5 years old) in Ulsan was 12.68 million KRW, a 28% increase compared to two years ago (9.91 million KRW). In contrast, the price increase rate for older apartments (over 10 years old) was 13.5% over two years (7.53 million KRW → 8.55 million KRW), meaning the price increase rate for new apartments was more than twice that of older apartments. For example, a 84㎡ unit in Daehyun The Sharp 2 Complex in Yaeum-dong, Nam-gu, which is in its fourth year since occupancy, was traded for 970 million KRW in May, setting a new record price.

Premiums are also being added to pre-sale rights for apartments about to be occupied. A pre-sale right for an 84㎡ unit in Munsuro Daegongwon Eilin's Teul (scheduled for occupancy in 2023) in Nam-gu was traded for 975.9 million KRW in May, setting a new highest price. This is about 50 million KRW higher than in April (920.85 million KRW). Similarly, a pre-sale right for an 84㎡ unit in The Sharp Beonyeong Centro (scheduled for occupancy in 2023) in Nam-gu was traded for 786.77 million KRW in May, rising by more than 100 million KRW compared to April (675.61 million KRW).

As the real estate market revives, newly launched complexes with significant price growth potential continue to sell out. IS Dongseo's Ulsan New City Eilin's Teul Phase 1 achieved 100% sales completion after all types were fully subscribed. Together with the upcoming Phase 2, the total will form a large complex of 1,770 households (Phase 1: 803 households, Phase 2: 967 households (planned)), which is attracting attention.

An official from a Ulsan real estate agency said, "Although parts of Ulsan were designated as regulated areas causing the real estate market to freeze, the number of new units available for occupancy in Ulsan this year, including rental apartments, is 897 households, the lowest ever. Recently, price increases centered on new apartments have continued, and complexes with premiums exceeding 100 million KRW are appearing one after another, leading to steady inquiries about purchasing new apartments where capital gains can be expected."

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