'Local Old Downtowns' in Redevelopment Receive a New Look as Emerging Residential Complexes

Perspective view of 'Beonyeong-ro Centridge' in Boksan-dong, Jung-gu, Ulsan (Provided by Hyundai Engineering)

[Asia Economy Reporter Lee Chun-hee] Various revitalization measures are being introduced to revive the stagnant old downtown areas in provincial metropolitan cities, and redevelopment plans are steadily progressing, fueling a sales boom.

According to Real Estate 114 on the 26th, redevelopment supply is continuously occurring in major provincial metropolitan cities such as Suyeong-gu in Busan, Jung-gu in Daegu, and Jung-gu in Ulsan, with housing prices rising sharply.

As of the 18th, the price per 3.3㎡ of apartments in Suyeong-gu, Busan, was 16.42 million KRW, surpassing Haeundae-gu (14.22 million KRW), which was previously a preferred new residential area. In particular, the price per 3.3㎡ of Namcheon-dong Samik Beach Town, considered a "traditional affluent neighborhood" apartment undergoing reconstruction, was 31.44 million KRW, the highest in Busan. The sale price of the 84㎡ (exclusive area) unit of Namcheon The Sharp Prestige (Namcheon 2 district redevelopment), which was sold in September last year for the mid-500 million KRW range, surged to 1.0705 billion KRW in actual transactions as of July.

In Daegu, Suseong-gu maintains the highest price in the city at 14.32 million KRW per 3.3㎡, while Jung-gu, where redevelopment is ongoing, is closely following at 12.79 million KRW per 3.3㎡. The 84㎡ unit of Cheongna Hills Xi, which was sold in the 450 to 500 million KRW range in February, was traded for 785.9 million KRW on the 21st, marking a price increase of over 50% in seven months. This equates to approximately 22.68 million KRW per 3.3㎡.

In Ulsan, redevelopment in the old downtown Jung-gu has brought attention to the Beonyeong-ro area, which is concentrated with transportation and living infrastructure. In fact, on the 25th, the general supply first-priority subscription for "Beonyeong-ro Centridge," supplied through the Hyundai Engineering consortium's redevelopment of Ulsan Jung-gu B-05 district, attracted 26,408 applicants for 1,047 units, closing with an average competition rate of 25.2 to 1. Especially for the most preferred 84㎡A units, 7,120 applicants applied for 45 units, showing an astonishing competition rate of 158 to 1.

In Suyeong-gu, Busan, Namcheon-dong Namcheon Samik Tower is planning reconstruction sales this year. The GS Construction consortium is responsible for construction, and it will be reborn as an apartment complex with 913 units.

In Jung-gu, Daegu, Dongin-dong Central Daewon Cantavil is currently on sale. It is a complex consisting of four buildings (three apartment buildings and one officetel) ranging from four basement floors to 43 above-ground floors. It offers 410 apartments exclusively composed of 84㎡ units, which are highly preferred by actual users, and 44 officetel units sized 58 to 64㎡. Located in the old downtown, it boasts excellent transportation including Daegu Station on Subway Line 1, as well as superior living infrastructure such as department stores and large marts.

A representative from the sales industry said, "The old downtown, which has long served as the regional center, is transforming back into a preferred residential area through redevelopment projects, proving the saying 'location is eternal.' Especially, subscription accounts of young actual users who prioritize transportation convenience and proximity to work are gathering in old downtown complexes."