As Haesudong Yeonnam Gets Congested, Non-Regulated Area 'Saha' Experiences Balloon Effect

With Busan's Haeundae, Suyeong, Dongnae, Yeonje, and Nam districts being collectively designated as regulated areas, attention is turning to these beneficiary regions.

According to recent data from the Korea Real Estate Board on housing price increases over the past three months, Busan's Haeundae District saw the highest rise in house prices among non-regulated areas, increasing by 4.94%. House prices also rose significantly in Suyeong District (2.65%) and Dongnae District (2.58%).

Accordingly, the government announced on the 19th that it held a Residential Policy Deliberation Committee meeting to newly designate Haeundae, Suyeong, Dongnae, Yeonje, and Nam districts as regulated areas due to the recent rapid surge in apartment prices. The designation will take effect from November 20.

Once designated as regulated areas, additional tax regulations not applied in speculative overheating zones will be imposed. For example, the loan-to-value ratio (LTV) for housing mortgage loans will be limited to 50% for properties valued at 900 million KRW or less, and 30% for the portion exceeding 900 million KRW. Buyers must also submit a funding plan disclosing the source of their purchase funds. Furthermore, eligibility for first-priority subscription will be extended from the existing 6 months to 2 years.

Previously, Haeundae, Suyeong, and Dongnae districts were included in regulated areas but were deregulated in November last year. The local real estate market experienced a downturn when the so-called ‘Haesu-dong’ area was designated as a regulated zone.

Experts predict that the designation of regulated areas will be a negative factor for the designated regions but a positive one for surrounding areas. Kim Byung-gi, head of the sales evaluation team at Real House, stated, "With abundant liquidity in the market and limited investment options in major areas like the metropolitan area and Busan, liquidity is expected to move to less regulated areas."

In the case of Busan's Saha District, it remains a regulation-free clean area. Since Saha District belongs to non-regulated areas, subscription and loan qualification requirements are not stringent. Even non-household heads can apply for subscriptions, and first-priority eligibility is granted after 6 months of subscription account membership. Additionally, loan regulations are relatively lenient, lowering the barrier for real demand buyers to secure their own homes.

Busan's Saha District is evaluated as having high future value due to various development prospects.

According to Busan City, the Sinpyeong and Jangnim industrial complexes will be revamped into urban high-tech industrial complexes for the first time in 30 years. Since being selected as an ‘Innovation Industrial Complex’ target site in 2016, various projects have been actively underway. Currently, as part of the structural advancement project, plans have been established for the construction of an Innovation Support Center, an open gymnasium, urban residential housing and officetels, and the Jangnim Seafood Food Enterprise Support Center. The Innovation Support Center and open gymnasium are scheduled to begin construction as early as the first half of next year, while the Jangnim Seafood Food Enterprise Support Center is planned to start construction by the end of this year.

Jangnim Retention Basin in Busan's Saha District was transformed into an ecological stream in 2014. Currently, the area is adorned with various flowers and trees and features walking trails, serving as a resting place for Busan citizens.

The transportation environment is also rapidly improving. In 2017, the Busan Urban Railway Dadae Line opened, becoming a vital transit option for Busan residents. The Dadae section of Busan Urban Railway Line 1 connects Sinpyeong Station to Dadaepo Beach Station. With this line's opening, public transportation access has become much easier for residents of Dadaepo and Jangnim areas as well as workers in Sinpyeong and Jangnim industrial complexes.

The Busan Urban Railway Sasang-Hadan Line (scheduled for 2023) is also planned. Once opened, travel time between Hadan Station and Sasang Station will be reduced to about 10 minutes. Notably, Sasang Station will allow transfers to the Busan-Gimhae Light Rail Transit, significantly improving access to Gimhae.

Vehicle access is expected to become more convenient as well. Construction is underway on the underground road connecting Eulsukdo Bridge to Jangnim Hill (scheduled to open in 2021), which links to Busan's Inner Circular Road. Once this section opens, travel time to Haeundae and Seomyeon living zones will be reduced to about 30 minutes.

Meanwhile, Doosan Construction will launch sales for ‘Doosan We’ve The Zenith Central Saha’ in November.

‘Doosan We’ve The Zenith Central Saha,’ a mammoth apartment complex with over 1,500 households making its first appearance in 15 years in Busan's Saha District, will be built on lot 740 in Jangnim 1-dong, Saha-gu, Busan. The complex consists of 13 buildings ranging from 2 basement floors to a maximum of 35 floors, totaling 1,643 households. Excluding cooperative members, 1,291 units (with exclusive areas ranging from 59 to 99 square meters) will be offered for general sale. All units are primarily small to medium-sized (84㎡ or less), which are highly preferred for residential purposes, and the complex is arranged mainly facing south to optimize sunlight and ventilation.

The complex is surrounded by various convenience facilities such as large supermarkets and government offices, enhancing residents' convenience. Lotte Mart is located just north of the complex, and Homeplus, Sejeong Outlet, Lotte Hi-Mart, and Jangnim Market are all within walking distance. Additionally, the Jangnim 1-dong Community Service Center is right next to the complex, with administrative institutions such as Jangnim Police Substation, Saha Police Station, and Jangnim Post Office nearby.

Jangnim Ecological Park is located right next to the complex, and the Nakdong River and the South Sea are also close by.