Gunsan with a High Proportion of Aging Houses... Focus on 'Gunsan Lake City I-Park' Armed with Rarity

by Jung Jin

Published 12 Oct.2023 14:25(KST)

New apartments supplied in areas with a high proportion of aging housing are gaining rare value and receiving special attention. This is because there is abundant waiting demand to move into new apartments, but the supply is not keeping up.

Areas densely populated with aging housing generally have relatively high residential preference. This is because these areas already have most of the living infrastructure in place, including schools, parks, roads, as well as commercial and cultural facilities. Additionally, there is almost no remaining land for apartments in these locations, so while housing demand remains steady, the supply of new housing is still insufficient.

For these reasons, it is easy to feel the heated enthusiasm for pre-sale in areas densely populated with aging housing. The 'Cheongnyangni Lotte Castle High Luce' in Dongdaemun-gu, Seoul, which was pre-sold this year, recorded an average competition rate of 242.3 to 1 in the first priority subscription. The proportion of apartments over 15 years old in Dongdaemun-gu, where this complex is located (Real Estate R114, as of September 2023), is 64%, meaning 6 out of 10 units are aging apartments.

The situation is similar in provincial areas. In Seo-gu, Daejeon, where the proportion of aging apartments reaches 82%, the ‘Dunsan Xi I-Park’ pre-sold last August recorded an average competition rate of 68.67 to 1 in the first priority subscription.

An industry insider explained, "Generally, areas with clusters of aging apartments have high residential satisfaction due to well-established living infrastructure, so there is a high demand for switching to new apartments. Moreover, after new apartments are built, the surrounding environment can be improved, which can have a positive impact on future housing prices."

The 'Gunsan Lake City I-Park,' being pre-sold in Gunsan-si, Jeollabuk-do, where the proportion of apartments over 15 years old is 61%, is also attracting market interest for these reasons.

The complex will be built in the Jigok-dong area of Gunsan-si, Jeollabuk-do, consisting of 8 buildings from 4 basement floors to 29 above-ground floors, with a total of 722 units ranging from 84 to 226 square meters in exclusive area.

In particular, ‘Gunsan Lake City I-Park’ is expected to attract high interest from buyers as it follows the ‘Gunsan Hosu Park I-Park’ in Jigok-dong, which was pre-sold in 2021 with an average subscription competition rate of 55.8 to 1.

The residential conditions are also excellent. It is close to Eunpa Lake Park, which spans approximately 2.57 million square meters, allowing residents to enjoy a pleasant living environment. Various shopping and cultural facilities such as Gunsan Medical Center, Lotte Mart, CGV, Lotte Cinema, and Gunsan Arts Center are within a 10-minute drive. Residents can also access the central commercial districts and convenience facilities of the adjacent Susong and Mijang districts. Nearby schools include Jigok Elementary, Gunsan Elementary, Dongsan Middle, Gunsan Girls’ Commercial High School, as well as the Gunsan City Neulpureun Library and Gunsan City Library.

Furthermore, the Jigok-dong area, where the complex will be located, was removed from the development restriction zone in August 2022 and designated as an infrastructure burden zone, accelerating the development of multi-family housing projects. As a result, it is expected to transform into a new residential town accommodating approximately 11,000 households (about 20,000 people), further improving living conditions.

The transportation network is also well established. Using nearby Saemangeumbuk-ro, Wolmyeong-ro, and Baekseok-ro, it is easy to access all areas of Gunsan and surrounding urban centers. The Gunsan Express Bus Terminal, Janghang Line Gunsan Station and Daeya Station, and the Seohaean Expressway (Gunsan IC) provide excellent regional transportation connectivity.

Many industrial complexes such as Gunsan General Industrial Complex, Gunsan National Industrial Complex, Gunsan Free Trade Zone, Gunsan 2nd Industrial Complex, and Saemangeum Industrial Complex are also nearby, allowing residents to enjoy the premium of proximity to workplaces.