[Issue] Gwangju Home Prices and Move-in Outlook Improve... Disparity in Transactions and Applications

Jeonnam-Gwangju Sale Prices Rise 0.03%... Seventh Consecutive Week of Increases
Gains Concentrated in Gwangsan-gu and Seo-gu, But More Overall Declining Transactions
Gwangju Move-in Outlook Up 6.7 Points to 100... Balance Loan Burden Remains

Indicators in the Gwangju real estate market are showing signs of improvement. Apartment sales prices continue to rise, and the apartment move-in outlook index has reached 100, the baseline. However, the number of actual transactions occurring at lower prices outnumbered those at higher prices, and newly launched special apartment supply programs failed to attract enough applicants. There is a clear discrepancy in market sentiment depending on the area and apartment complex.

According to the "Weekly Apartment Price Trend for the Fourth Week of August," released by Korea Real Estate Board on August 27, apartment sales prices in Jeonnam-Gwangju as of August 24 increased by 0.03% compared to the previous week. The rate of increase was the same as the previous week.

During the same period, nationwide apartment sales prices rose by 0.11%, while those in regions outside the Seoul metropolitan area increased by 0.01%. The four major metropolitan cities recorded no change. Apartment sales prices in Jeonnam-Gwangju have increased for seven consecutive weeks since the release of the integrated statistics in the second week of July.

However, the rental (jeonse) market remained sluggish. Apartment jeonse prices in Jeonnam-Gwangju fell by 0.01% from the previous week, marking a second consecutive week of decline. The numbers announced on this day represented the combined fluctuations for the entire integrated area of Jeonnam and Gwangju, not for Gwangju alone.

Gwangsan and Seo-gu Led Gains... More Declining Transactions Than Rising Ones

As of the most recent survey on August 17, apartment sales prices in Gwangju rose by 0.03% from the previous week. By district, Gwangsan-gu showed the highest increase at 0.06%, followed by Seo-gu and Nam-gu at 0.03% each, and Buk-gu at 0.01%. Dong-gu declined by 0.04%.

While price indicators increased, there was a cautious trend in actual transactions. According to data analyzed by Sarangbang Real Estate and released on August 20 using Ministry of Land, Infrastructure and Transport transaction records, out of 240 apartment sales in Gwangju during the previous week, 110 (45.8%) were at higher prices. Declining transactions accounted for 119 (49.6%), and unchanged transactions made up 11 (4.6%).

Property listings are posted at a real estate agency in Gwangsan District, Gwangju. The government has designated the area around Gwangju Military Airport, the planned site for the Honam Semiconductor Cluster, and nearby regions as land transaction permission zones. Photo by Bohyun Song

Of the increasing transactions, 61.8% were concentrated in Gwangsan-gu and Seo-gu. The local real estate sector observed that while buyer inquiries are growing, especially in popular areas and for newly built complexes, real demand-side buyers are still taking a wait-and-see approach due to the burden of loans and price differences between districts. Many experts believe it is premature to conclude that the entire market is entering an upward phase based only on some improved indicators.

The new apartment supply market also showed significant variations between complexes. According to Korea Real Estate Board's Cheongyak Home, for the Cheomdan 3 District Jeil Punggyeongchae A6 Block, only 64 applications were received for 240 special supply units, resulting in an average competition ratio of 0.27 to 1. Previously, the developer reported that around 18,000 people visited the show apartment over three days after its opening.

Gwangju Move-in Outlook Improves... Burden of Balance Payment Loans Increases

The outlook for move-in conditions in Gwangju, as assessed by housing project developers, has improved. In the August Apartment Move-in Outlook Index published by the Korea Research Institute for Human Settlements, Gwangju recorded a score of 100—up 6.7 points from the previous month. It was the only major metropolitan city to see an increase.

The move-in outlook index measures the expectations of developers regarding whether buyers who obtained apartment units via pre-sale will be able to pay their balance and move in normally. A score above 100 signifies an optimistic forecast; below 100 means more pessimistic expectations. The 100 mark is the baseline for balanced positive and negative expectations.

National Apartment Move-in Outlook Index. Korea Research Institute for Housing and Urban Affairs

The national move-in outlook index dropped by 3.1 points from the previous month to 94.4. The Korea Research Institute for Human Settlements cited tightening loan regulations and policy uncertainties such as upcoming tax reforms as major factors contributing to the overall decline. In contrast, the outlook for Gwangju improved, as expectations for regional industrial revitalization and increased investment—driven by discussions around the area as a potential site for the Honam Semiconductor Cluster—were factored in.

The actual move-in rate also saw a slight increase. In July, the move-in rate for apartments in Gwangju and Jeolla region was 69.2%, an increase of 0.4 percentage points from 68.8% the previous month. This was 1.1 percentage points higher than the national average of 68.1%.

Across the country, the main reason for failing to move in was delays in selling existing houses (37%), followed by failure to secure balance payment loans (31.5%), inability to find tenants (16.7%), and delays in selling pre-sale rights (3.7%). Notably, responses citing failure to secure balance payment loans increased by 5 percentage points from the previous month.

Local real estate industry figures report that buyer inquiries are increasing—especially in popular areas and for new complexes—but the burden of loans continues to keep real demand-side buyers cautious. One industry source said, "Market sentiment varies greatly. Just because some indicators have improved, it is too early to conclude that the entire market is entering an upward phase."

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