High Subscription Competition and Sharp Price Increase... Prestigious School Districts Attracting Strong Demand
Introducing 'Ulsan Jiwell City Xi' in Ulsan's Prestigious School District... Drawing Attention from Parents and Buyers
Among parents, apartments in good school districts are a consistent topic of interest.
Recently, as the Ministry of Education announced plans to revise education policies, interest in prestigious school districts has been increasing. The Ministry announced a plan to convert autonomous private high schools, foreign language high schools, and international high schools into general high schools starting in 2025. In addition, from this year, a blind evaluation system blocking the name and type of high schools during the entire college admission process is being implemented, and by 2023, there are plans to expand the regular admission quota to over 40% and to diversify the college admission system.
Generally, complexes within walking distance to educational facilities are not only safe but also have good accessibility to nearby academies. Moreover, under the “Education Environment Protection Act,” a clean commercial zone within a 200-meter straight-line distance from schools is guaranteed, allowing students to receive education in a pleasant environment.
According to data from Real Estate 114, the average sale price per 3.3㎡ in Mok-dong, where large academy districts and prestigious school districts are located nearby, is currently (as of February) 35.81 million KRW, surpassing the Yangcheon-gu average of 30.03 million KRW. In contrast, Sinwol-dong, which is relatively farther from Mok-dong within Yangcheon-gu, shows a notable price difference with an average sale price of 16.24 million KRW.
Prestigious school districts are also favored in the subscription market. According to data from the Korea Real Estate Agency’s subscription homepage, ‘Daebong The Sharp Central Park Phase 2,’ supplied in Jung-gu, Daegu last December, recorded a first-priority average competition rate of 153.87 to 1, the highest among complexes supplied in Daegu last year. This complex is within walking distance to Gyeongbuk National University High School, one of Daegu’s prestigious schools, and is located near a large academy district.
Earlier, in September, ‘Raemian La Classy’ launched in Gangnam-gu, Seoul, recorded a high first-priority average competition rate of 115.09 to 1. This complex is adjacent to prestigious high schools such as Gyeonggi High School, Eonju Middle School, Yeongdong High School, and Jinseon Girls’ High School, and is also close to the Daechi-dong academy district.
As prestigious school districts are considered steady sellers in the pre-sale market, demand remains steady, and price appreciation after move-in is also high. For example, ‘Raemian Daechi Palace Phase 1’ in Gangnam-gu, Seoul (moved in September 2015), is within walking distance to Sookmyung Girls’ High School and Dankook University High School, part of the Gangnam 8 school districts. According to KB Real Estate price data, the average sale price of an 84㎡ unit in this complex rose 14.7% over one year (February 2019 to February 2020), increasing by 375 million KRW (from 2.55 billion KRW to 2.925 billion KRW). This is higher than the average price increase rate of medium-sized units (62.9㎡ or more and less than 95.9㎡) in Gangnam during the same period (12.03%).
An industry insider said, “Recently, people in their 30s and 40s who are highly interested in their children’s education have emerged as the main demand group in the pre-sale market, making transactions of apartments in prestigious school districts more active. With private education expenses recently rising at the largest rate ever and education policy revisions ahead, the merit of general prestigious schools will continue for some time.”
Meanwhile, in May this year, Shinyoung Co., Ltd. plans to supply ‘Ulsan G-Cwell City Xi’ in the Seobu-dong area of Dong-gu, Ulsan, a prestigious school district. The complex consists of two phases, with 18 buildings ranging from 5 basement floors to a maximum of 37 floors above ground, totaling 2,687 households with exclusive areas ranging from 59 to 107㎡.
This complex offers walking access to elementary, middle, and high schools such as Seobu Elementary School, Noksu Elementary School, Hyundai Middle School, Hyundai Cheongun Middle School, Hyundai High School, and Hyundai Cheongun High School. It is also adjacent to the Ulsan East Library and academy districts, providing a well-equipped educational environment.
Accessibility to major industrial complexes in Ulsan is also excellent. Hyundai Heavy Industries is located directly opposite the complex, and large industrial complexes such as Hyundai Mipo Dockyard, Hyundai Motor Company, Hyundai Steel Ulsan Plant, KCC Ulsan Plant, and Hyundai Mobis Ulsan Yeompo-dong Plant are reachable by car.
The complex also offers various amenities. Mini kayak water playgrounds are created in each of the two phases, and a futsal field is located in the central part of the complex. Each phase’s community center is equipped with diverse facilities such as a fitness center, small library, single-person reading rooms, GX rooms, dry sauna, multipurpose rooms, and an indoor gymnasium.
The interiors apply Shinyoung’s uniquely practical specialized designs. The layout mainly features 4Bay slab-type cross ventilation to enhance lighting and ventilation, and an LDK structure connecting the living room, dining room, and kitchen to provide openness. In particular, the exclusive 84㎡A and 107㎡ units separate the kitchen and dining areas and apply full-glass window designs in the dining room to improve ventilation and openness. The exclusive 84㎡B unit offers an alpha room and pantry next to the kitchen to secure storage space.
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