Busan Suyeong-gu Real Estate Market on the Rise... Prices Increase Further After Move-In

Suyeong-gu, with high residential preference, has the highest average sale price... Apartment price rise curve in Busan's core area
Haeundae-gu surpasses Dongnae-gu with the steepest post-construction price increase, supported by completed infrastructure in the old downtown
Hyundai Engineering's 'Hillstate Namcheon Station The First' attracts attention in Suyeong-gu, Busan's representative affluent district

The real estate market in Suyeong-gu, Busan, which was released from the regulated area about a year ago, is showing unusual signs. Among Haeundae, Suyeong, and Dong districts in Busan, Suyeong-gu's real estate market is the most active, and as regulations have been imposed on Seoul and the metropolitan area, demand is focusing on Busan, which has relatively fewer regulations, especially Suyeong-gu, which has high residential preference. In fact, apartment prices in Suyeong-gu have been rising both in sales and jeonse (long-term lease) prices after occupancy, showing a clear price gap compared to other areas.

According to the Korea Real Estate Board, the average sales price of apartments in Suyeong-gu was 448 million KRW as of September 2020. This is the highest price among all 16 districts in Busan, including Haeundae-gu and Dongnae-gu, and is 142.19 million KRW higher than the overall Busan city average sales price of 305.81 million KRW.

When comparing the sales price increase rates by district for this year (January to September), Suyeong-gu rose by 7.4% (416.85 million KRW → 448 million KRW), which is higher than Nam-gu's 4.6% (352.16 million KRW → 368.58 million KRW), Gangseo-gu's 1.5% (349.58 million KRW → 355.14 million KRW), and Busanjin-gu's 2.3% (255.56 million KRW → 261.53 million KRW).

Such strong performance in the Busan real estate market is reflected in the steep price increases of apartments in Suyeong-gu after occupancy. According to KB Real Estate data, the average sales price of an 84㎡ unit in ‘Centum Vista Dongwon 1st’ located in Millak-dong, Suyeong-gu (occupied in July 2017) was 480 million KRW at the initial occupancy (October 2017), but after three years, in October 2020, it rose by 335 million KRW to 815 million KRW.

Another apartment in Suyeong-gu, ‘e-Pyeonhansesang Gwang-an Beach’ (occupied in October 2016), shows a similar trend. The average sales price of an 84㎡ unit was 380 million KRW at initial occupancy (October 2016), but after four years, in October 2020, it increased by 305 million KRW to 685 million KRW.

The industry views the premium expected from planned reconstruction and redevelopment projects in Suyeong-gu as a factor connecting buyers' expectations to the rising market prices.

A representative from B Real Estate Agency located in Suyeong-gu said, “Suyeong-gu is currently one of the most sought-after areas in Busan due to development issues such as the Samik Beach Town reconstruction, and external investment demand has been increasing recently. With excellent location equipped with transportation and living convenience facilities, buyer preference is quite high, leading to noticeable price increases.”

Hyundai Engineering is scheduled to simultaneously sell commercial facilities and apartments in Namcheon-dong, Suyeong-gu, Busan, in November with ‘Hillstate Namcheon Station The First,’ which is attracting attention as it will be located near Daenam Intersection in Namcheon-dong, Suyeong-gu, a representative affluent area in Busan.

‘Hillstate Namcheon Station The First’ consists of two buildings with 217 households, ranging from 70 to 84㎡ in exclusive area, from basement level 5 to ground level 34. Commercial facilities of 3,572㎡ will be developed on the 1st and 2nd floors, and apartments will be located from the 3rd to the 34th floor.

This complex has all the elements for price appreciation. First, it is an ultra-station area complex with Exit 4 of Namcheon Station on Busan Subway Line 2 right in front of the complex, providing excellent transportation. Additionally, within about a 5-minute walk, there are five bus stops serving 33 routes, making it easy to access both inside and outside the city. Nearby roads such as Hwangnyeong-daero, Hwangnyeong Tunnel, and Suyeong-ro provide convenient access to Namhae Expressway and Gwang-an Bridge.

It also offers an excellent educational environment. Namcheon Elementary School is located about 400 meters from the complex, allowing safe commuting for children. Namcheon Middle School, Busan Dong Girls' High School, and Suyeong-gu Library are within an 800-meter radius, and the Namcheon-dong academy district, a representative entrance exam academy area in Busan, is within 500 meters, providing abundant educational infrastructure.

Moreover, commercial facilities within the complex, as well as Smart Bakery Street, Namcheon Beach Market, Lotte Hi-Mart (Namcheon branch), Mega Mart, and Pukyong National University shopping street are nearby, making commercial facility use convenient. Public institutions such as Suyeong-gu Office, Suyeong Tax Office, and community centers are also close.