Gwangju Set to Offer 11,000 New Apartments This Year...Unsold Inventory Emerges as a Key Risk Amid Expanding Supply

Presales Planned for 16 Complexes, Including Jeonilbang, Jungoe Park, and Yang-dong District 3
With 1,404 Unsold Units and Outlook Index Below Baseline, Caution Prevails in the Market

This year, with apartment sales of around 11,000 households scheduled in Gwangju, housing supply in the local market is expected to increase significantly. As unsold inventory still remains, concerns are also being raised about a potential short-term supply-demand burden.

According to real estate platform Zigbang on the 15th, a total of 11,129 apartment units in 16 complexes (excluding rental units) are scheduled to be put on the market in Gwangju this year.

First, the mixed-use apartment complex "Champions City Phase 2" (3,216 units), which is being developed on the former Jeonbang and Ilsin Textile (Jeonilbang) site, is planning its first sales launch on May 1. In July, 748 out of a total of 994 units at "Hillstate Jungoe Park Phase 1" in Unam-dong, a private park special project site, are scheduled to go on sale. In November, 781 out of a total of 1,212 units at "The Sharp Lumitrier" in the Yang-dong District 3 redevelopment area are planned to be offered for sale.

Although the exact schedule has not been finalized, sales are also expected to be pursued within the year for Cheomdan A7 in Wolchul-dong (a total of 356 units) and four complexes of "Acro Tramont" (a total of 4,718 units) to be built in the Singa-dong housing redevelopment and maintenance project area.

However, as this overlaps with approximately 20,000 new move-in units for 2023 to 2025, there are concerns that, with unsold inventory not yet fully cleared, a short-term supply-demand imbalance could emerge.

According to statistics from the Ministry of Land, Infrastructure and Transport, the number of unsold apartments in Gwangju stood at 1,404 units as of the end of December last year, slightly up from 1,234 units at the end of January last year. In particular, unsold units after completion surged to 781, showing a sharp increase compared with the beginning of the year. Since there is no disclosure obligation for unsold units before completion, the actual scale is estimated to be larger.

A survey by the Housing Industry Research Institute targeting housing developers also showed that the Gwangju apartment sales outlook index came in at 95.0 in February. Although this was up 23.6 points from the previous month (71.4), it was the only figure among special and metropolitan cities to fall below the baseline of 100, lagging behind Seoul (111.9), Sejong (121.4), Ulsan (105.9), Daejeon (105.6), and Incheon, Busan, and Daegu (100.0).

Some observers also predict that, given the possibility of a future decline in supply, demand may emerge to secure newly built apartments in advance. Kim Eunsun, head of the Big Data Lab at Zigbang, said, "This year's supply of presale units could become a short-term burden on the market, but since these are planned figures, we need to watch the actual sales performance and pace," adding, "As a decline in supply is expected around 2027 to 2028, it is necessary to look not only at short-term numbers but also at the long-term supply trend together."

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