Housing sales in small and medium-sized provincial cities are emerging as a hot keyword in the real estate market. Demand is flocking to small and medium-sized provincial cities that have avoided regulations ahead of the strengthened pre-sale rights transfer restrictions to be implemented in August.
The regulation to be implemented in August strengthens the pre-sale rights transfer restriction period for housing supplied in private land areas within overcrowding control zones, growth management zones, and urban areas of provincial metropolitan cities to last until the ownership transfer registration. The pre-sale rights transfer restriction period for housing supplied in private land areas of the metropolitan area and provincial metropolitan cities, which were previously non-regulated areas, is expected to increase several times from the existing six months.
Accordingly, idle funds in the market are highly likely to flow into small and medium-sized provincial cities where pre-sale rights transactions are relatively free. In fact, the number of pre-sale rights transactions has steadily increased from last year to this year. According to the Korea Real Estate Board, the total number of pre-sale rights transactions nationwide from January to May this year was 1,341,504, a 17.6% increase compared to 1,140,800 during the same period last year. In particular, pre-sale rights transactions in small and medium-sized cities have become active; for example, in Gwangyang City, Jeollanam-do, only 27 transactions were made during the same period last year, but this year it surged to 487.
The atmosphere in the provincial small and medium-sized city housing sales market is also positive. Last month, ‘Gwangyang Central Xi’ in Gwangyang, Jeollanam-do, attracted 19,741 applicants for 428 households (excluding special supply), recording an average competition rate of 46.12 to 1. Also, ‘Seongsan Bando Ubora Ivy Park’ in Changwon, Gyeongsangnam-do, received 5,495 applications for 439 households (excluding special supply), achieving a competition rate of 12.52 to 1.
Real estate experts say, “With the August regulation extending the pre-sale rights transfer restriction period for apartments supplied in the metropolitan area and provincial metropolitan cities, demand will inevitably flow to apartments in small and medium-sized provincial cities where pre-sale rights transactions are relatively free.” They added, “It is important for buyers to carefully distinguish which apartments in small and medium-sized provincial cities have many development prospects and excellent product quality.”
As housing sales in small and medium-sized provincial cities heat up, Dongmoon Construction has attracted attention by announcing a sale in Gwangyang, Jeollanam-do. ‘Gwangyang Dongmoon Good Morning Hill Mom City’ will be built on A1 block in Wau District, Madong, Gwangyang City, Jeollanam-do, as a large complex with 15 buildings, 27 floors above ground and 2 basement levels, and 1,114 households with an exclusive area of 84㎡.
Gwangyang Dongmoon Good Morning Hill Mom City boasts large-scale development prospects. First, there is the Myodo Port Redevelopment (LNG Hub Terminal) project. On May 12, Jeollanam-do, Yeosu City, Hanyang Co., Ltd., Korea District Heating Corporation, and five subsidiaries of power companies signed an investment agreement for the Northeast Asia LNG Hub Terminal project worth 1.3 trillion KRW at Yeosu City Hall. The economic effects of this project are expected to include 36,800 jobs created and a production inducement effect of 7.988 trillion KRW. Additionally, the Isunsin Bridge Coastal Tourism Theme Street project, which will develop the 9.4 km coastal road from the nearby Marine Park to Geumho Bridge and Isunsin Bridge into a waterfront leisure space, is scheduled for completion in 2025. The Gubongsan Tourist Town project, which will build accommodation, leisure, and sports facilities, is also underway.
The complex is located as a residential area behind POSCO Gwangyang Steelworks, Gwangyang’s representative industrial complex, securing abundant demand from large-scale corporate employees. POSCO Gwangyang Steelworks is a large industrial complex with about 6,400 employees and about 8,000 related company workers, totaling approximately 15,000 related workers. Nearby are also Gwangyang National Industrial Complex, Yeosu National Industrial Complex, Yulchon Local Industrial Complex, and Singeum General Industrial Complex.
Dongmoon Construction’s specialized design is also applied, attracting attention. The complex is designed with buildings mainly facing south, allowing good sunlight and ventilation even on lower floors. The floor plan features a 4-bay structure (except some units) that enhances openness, and storage spaces are provided throughout the kitchen, bedrooms, living room, as well as pantry and dressing room.
The parking lot is 100% underground (excluding commercial areas), with wide and ample parking spaces. The ground space is filled only with green areas, landscaping facilities, and resident exercise and rest facilities, and many specialized facilities for children and mothers are created throughout the complex. In particular, community facilities such as a fitness center, GX room, table tennis room, GDR golf practice range, sauna (male and female), kids’ room, multi-room, small library, and reading room are provided to support leisure and hobbies exclusively for residents.
In addition, various systems for residents’ convenience and safety are introduced, including a one-pass system, fingerprint recognition door locks, smart door cameras, air purification systems, LED lighting, unmanned parcel delivery systems, solar power generation systems, room-by-room temperature control systems, and vehicle number recognition systems.
Meanwhile, the model house for Gwangyang Dongmoon Good Morning Hill Mom City is located around 88 Jungmajungang-ro, Gwangyang City, and a promotional center will operate at 160 Jungma-ro (Container Wharf Intersection) until the opening. Move-in is scheduled for January 2023.
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