AI Drives Ulsan Apartment Prices Up: National Average Jumps 200 Million Won in a Year [Real Estate AtoZ]

Second-Highest Growth Rate Nationwide After Seoul

Ulsan Rises for 46 Straight Weeks While Daegu, Daejeon, and Gwangju Fall

Upward Trend Driven by Specific Areas in Nam-gu; Asking Prices Reach 1.3 Billion Won

Supply Shortage Further St

Apartment prices in Ulsan are on the rise. While the real estate market in other provinces remains mired in stagnation, Ulsan is experiencing an upward trend due to a series of positive industrial developments, such as artificial intelligence (AI) data centers, electric vehicles, secondary batteries, and a recovery in the shipbuilding industry. Key residential areas with strong school districts and living infrastructure, such as Ok-dong and Sinjeong-dong in Nam-gu, are leading the price surge.

Overview of Aileen’s Garden complex at Munsu Road Grand Park, Sinjeong-dong, Nam-gu, Ulsan. Naver Real Estate

According to the actual transaction price website of the Ministry of Land, Infrastructure and Transport on June 10, a dedicated 84 square meter unit at "Aileen’s Garden Munsu Road Grand Park" in Sinjeong-dong, Nam-gu, Ulsan—a popular complex in a top school district—was traded last month at a record high of 1.25 billion won (on the 11th floor). This is an increase of about 200 million won in one year, compared to a transaction of 968 million won (on the 16th floor) in June last year. During the same period, a 59 square meter unit in the same complex also set a new record, rising from 650 million won (on the 17th floor) to 880 million won (on the 9th floor).

At Daegongwon World Meridian, near Gonguptap, an 84 square meter unit was sold for 930 million won (on the 23rd floor) in January this year, up by 100 million won in a year, setting a new high. Currently, only one 84 square meter unit is listed, with the asking price reaching 1.3 billion won. Rael S, which is scheduled for occupancy in 2028, saw its 84 square meter pre-sale and occupancy rights traded for 1.212 billion won (on the 25th floor) in March, and the asking price has since risen to 1.346 billion won.

The head of a real estate agency in Ok-dong commented, "Just last year, a 32-pyeong apartment was in the 600 million won range, but recently prices have climbed to the mid-700 million won range. At first, buyers insisted they couldn't afford these prices, but as prices didn't drop, they eventually accepted the new reality." He added, "Ok-dong and Sinjeong-dong are areas where demand converges in Ulsan, thanks to the presence of a grand park, good schools, a cluster of academies, and government offices. Even people working at Hyundai Motor or in the shipbuilding industry move here for their children's education."

According to weekly apartment price trends from Korea Real Estate Board, apartment prices in Ulsan rose by 2.42% from the start of this year to the first week of June. This is the second-highest growth rate in the country after Seoul (3.93%). In contrast, Daegu (-0.65%), Daejeon (-0.20%), and Gwangju (-1.28%) saw declines over the same period. Ulsan apartment prices have increased for 46 consecutive weeks, from the second week of July last year to the first week of June this year.

The main driver supporting Ulsan real estate is the AI industry boom. In Ulsan’s Mipo National Industrial Complex, SK Group and Amazon Web Services (AWS) are investing in an AI data center project worth 7 trillion won. The project involves building a dedicated 100MW AI data center on a 36,000 square meter site in Hwangseong-dong, Nam-gu, Ulsan. In particular, a recent visit to Korea by Jensen Huang, CEO of NVIDIA, to discuss AI infrastructure collaboration with major domestic firms has brought renewed attention to the Ulsan data center project. The city expects that, over the next 30 years, the project will create more than 78,000 jobs and generate economic effects worth 25 trillion won.

Many analysts believe that the AI industry is driving a re-evaluation of Ulsan as an industrial city and raising expectations for increased local purchasing power, which is spurring the rise in housing prices. Park Wongap, Chief Real Estate Expert at KB Kookmin Bank, said, "Ultimately, purchasing power determines home prices. When there is positive industrial news, demand with strong purchasing power increases, and the most preferred regions and complexes are the first to move." He added, "Unlike in the past, we are not seeing a market where the whole region rises together. Instead, we are seeing both polarization and multipolarization at once. The combined capital power of high-income dual-income households in their 30s and 40s is now the key demand segment driving the market."

The recovery in the manufacturing sector is another factor supporting the housing market. Hyundai Motor is aiming to begin mass production at its dedicated electric vehicle plant in Ulsan in the second half of this year. A new hydrogen fuel cell plant in Ulsan is also under construction, with operations targeted to begin in 2027. In the specialized secondary battery cluster, 810 billion won in private investment is planned by 2030. The shipbuilding industry is also boosting the regional economy, with a recovery in orders and rising demand for workers.

An imbalance in supply and demand is also fueling buying sentiment. Apartment completions in Ulsan will decrease by 12.6%, from 5,043 units last year to 4,478 units this year. Given that the appropriate annual demand for Ulsan’s population is around 5,500 units, this year’s supply amounts to just 81% of appropriate demand. As choices for new apartments have dwindled, unsold units have been absorbed quickly. Ulsan’s unsold apartment inventory dropped from 3,726 units in March last year to 1,164 units in March this year, a decrease of 68.8% in one year.

However, the price increase is concentrated in specific areas within Ulsan. From the start of this year to the first week of June, apartment prices in Nam-gu rose by 3.71%, the highest among Ulsan’s five districts and counties. This was followed by Jung-gu at 2.32%, Buk-gu at 2.24%, Ulju-gun at 1.70%, and Dong-gu at 1.17%. The growth rate in Nam-gu exceeds three times that of Dong-gu.

The head of a real estate agency in Yugok-dong, Jung-gu, Ulsan, said, "Only new apartments are seeing buying interest, while existing older apartments have seen little or no price increases, and in some cases, prices have even dropped." A real estate agent in Seobu-dong, Dong-gu, commented, "Transactions are rare for older apartments, and the strong demand is concentrated only on new units in Nam-gu."

Experts also say that it is difficult to view the Ulsan real estate market as overheated. Park also noted, "There are still unsold units in the provinces, and the buying trend is not strong enough to warrant designating the area as a regulated zone. The recent rise is more of a gentle recovery than a sharp surge."

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