Local Apartments Rise from 500 Million to 1.2 Billion Won... The 'Multi-Transit Advantage' Behind Soaring Prices [Real Investment Techniques]

The Secret Behind Homes Unfamiliar with Unsold Inventory

Special Supply Competition Rate in Provinces Stagnates at 0.6 to 1

Trust in Branded Apartments' Design and Community

Education, Shopping, and Lifestyle Infrastructure Boost Resi

Polarization between the Seoul metropolitan area and regional cities is intensifying in the presale market for new apartments. As the Stress DSR (debt service ratio) has been tightened in stages, and overall household lending limits have been imposed, it has become increasingly difficult to secure financing after being allocated a new apartment. This has strengthened the tendency for demand to concentrate in the most desirable locations of the metropolitan area, especially central Seoul. In comparison to new apartments in the provinces, prices in Seoul—particularly in southern districts subject to price ceilings—are higher, making them more attractive for subscription savings holders. Meanwhile, in the provinces, economic recovery remains sluggish, and regions with a backlog of unsold units continue to see subdued demand, perpetuating a situation where sales are slow to recover.

According to an analysis released on September 16 by Korea Real Estate Board on apartment supply and subscription applications by region, a total of 31,871 apartment units were offered for presale in the metropolitan area during the first half of this year. There were 310,852 subscription accounts submitted, resulting in an average competition rate of 9.8 to 1. By contrast, in the provinces, 27,726 units were offered during the same period and 110,279 applications were submitted, yielding a much lower average competition rate of 2.9 to 1—less than one-third of the level in Seoul and its suburbs.

In particular, the average competition rate for special-purpose allocations in the provinces was only 0.6 to 1. Although relatively better results were seen in South Chungcheong and South Gyeongsang, the competition rate failed to reach 1 to 1 in regions such as South Jeolla, Gangwon, and Jeju, highlighting severe stagnation. Until 2021, the average competition rate for presale subscriptions outside the metropolitan area was as high as 12.2 to 1, marking double digits, but this has been on a steady decline since then.

Apartment complexes in the Dongnae-gu and Geumjeong-gu areas of Busan. Yonhap News

Despite the challenging conditions in regional real estate markets, apartment complexes located in prime areas with comprehensive living infrastructure and brand recognition have posted relatively strong subscription numbers. Well-recognized apartment brands increase consumer confidence, thanks to design and community offerings, as well as after-sales service. Proximity to subway stations makes for convenient commuting and enhances liquidity. Living infrastructure such as educational, shopping, and medical facilities is a critical factor for residents’ satisfaction after moving in. In a weakening market, demand tends to concentrate on complexes that fulfill all three conditions, rather than on those that offer just one feature.

For example, "The Sharp Trecent," developed by POSCO E&C and offered for subscription last month in Nam-gu, Busan, saw all housing types booked out on the first try, with an average competition rate of 18.3 to 1. Analysts attribute the strong demand to the large builder’s brand, the marketability of all units being 4-bay plate designs, and accessibility to Jijegol Station on Busan Subway Line 2. Other factors include good access to amenities such as large supermarkets, local markets, university districts, and hospitals, which also garnered interest from potential buyers.

Similarly, "Daegu Beomeo 2nd IPARK," which was offered for sale in Suseong-gu, Daegu in the second half of last year, closed all housing types with a 1st priority average competition rate of 75.2 to 1, and the most popular unit type reached 148.5 to 1. Analysts have pointed to the power of the IPARK brand, proximity to Lines 2 and 3 of the Daegu Subway, and easy access to elementary, middle, and high schools and private academies as the driving factors for the subscription’s popularity.

Resale price trends after occupancy also reflect this preference. The 84-square-meter unit at "Dongnae Raemian IPARK" in Dongnae-gu, Busan, which was completed in 2022, was sold for 1.19 billion won in April this year. Considering that the presale price for the same unit in 2018 was around 535 million won, the price has more than doubled. This is a large-scale brand complex with 3,853 households, and it is close to Busan Subway Lines 3 and 4.

"Leica County" in Yeonje-gu, Busan, has also retained strong price competitiveness post-occupancy. Constructed by a Samsung C&T consortium, this development comprises 4,470 units, and the highest transaction price for an 84-square-meter unit reached 1.07 billion won in May this year. This is about 360 million won higher than the recorded maximum of around 710 million won for an identically sized unit sold via general presale. Similarly, the apartments benefit from close access to a subway, large supermarkets, Busan Medical Center, Sajik Sports Complex, as well as municipal offices, courthouse, and prosecutor’s office, all of which enhance basic living infrastructure nearby.

An industry insider explained, "In the regional housing market, as the proportion of genuine local end-users looking for long-term residence grows—compared to pure investment demand—there is a clear trend toward preferring complexes that provide a balance of marketability, transportation convenience, and comprehensive living infrastructure, rather than those with just brand appeal or transit access." The insider also said, "Such developments continue to absorb local replacement demand after occupancy, and offer comparatively better price support and liquidity."

Industry experts believe that, going forward, regional apartments possessing these qualities will see demand concentrate on them during the next round of presales. GS E&C plans to launch "Yeonje Gallery Xi" on the site of the former Xi Gallery in Yeonsan-dong, Yeonje-gu, Busan. The complex, consisting of a single 84-square-meter unit type and totaling 499 households, will be the first project in Busan featuring the renewed Xi brand, and efforts have been made to differentiate its market appeal. The complex will have a skyline rising up to 43 stories, be predominantly south-facing, and offer various layouts including both 4-bay plate and tower-type units. It is located near Yeonsan, Gyodae, and Geoje stations, as well as the Yeonsan Intersection, which connects major residential districts in Busan, making transportation very convenient. Nearby, there is already a cluster of medical centers, administrative and business facilities, and commercial establishments, providing a well-developed living infrastructure.

Daewoo E&C will develop "Dujeong Station Prugio Grand Peak" in Seongjeong-dong, Seobuk-gu, Cheonan, South Chungcheong Province, with a planned total of 1,438 units. The project will consist of 10 buildings from 3 basement levels to as high as 35 stories above ground. Residents will have access to Dujeong Station on Seoul Subway Line 1. This month, IPARK Hyundai Development Company is set to offer "Cheonan IPARK City 3rd and 4th Complexes" as part of the Budae-dong Urban Development Project in Seobuk-gu, Cheonan. In total, 1,714 units sized from 84 to 116 square meters will be built, with 1,628 of them offered to the public. "Hillstate Geoje Signature," scheduled for presale next month, and "Gwangju Champions City," expected to launch later this year, will also be constructed as large-scale complexes.

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