Ulsan Real Estate Smiles at Shipbuilding Revival, 'KCC Switzen Welztower Phase 2 Sale'

- Ulsan Real Estate Booms with Shipbuilding Industry Recovery... Housing Prices and Transactions Rise, Unsold Units Significantly Decrease
- KCC Construction Gains Attention with 'KCC Switzen Welztower 2nd Complex' Sale in Dong-gu Area

As the shipbuilding industry recovers, the real estate market in Ulsan City, which drives the local economy based on this industry, is also showing positive momentum. The heightened expectations stemming from the massive economic effects anticipated due to large-scale orders are believed to be translating into the real estate market.

In fact, the domestic shipbuilding industry, which was once overshadowed by China, is now widely regarded as having firmly reclaimed its throne through a series of successful orders.

According to Clarkson Research, a British shipbuilding and shipping analysis firm, the 2020 ship order results by country showed that out of the global ship order volume of 19.24 million CGT, South Korea secured about 43%, or 8.19 million CGT, ranking first in order volume. Notably, this marks the third consecutive year of achieving first place following 2018 and 2019, which the industry views as highly significant.

Moreover, the domestic shipbuilding industry has continued its order-winning streak this year, further raising expectations for the future. In January alone, South Korea secured over 50% of the global ship order volume, and particularly in key ship types such as large container ships and LNG carriers, it recorded a 100% market share.

This effect is directly reflected in the real estate market. In Ulsan, house prices have steadily risen in tandem with the recovery of the shipbuilding industry, and unsold housing units have significantly decreased.

According to the Korea Real Estate Board, Ulsan's house price increase rate was 0.38% as of the second week of January, the highest among the 17 metropolitan cities and provinces nationwide. This figure represents the highest increase rate for eight consecutive weeks since the fourth week of November, clearly demonstrating strong interest in Ulsan real estate.

Transaction volumes have also surged. In particular, apartment transactions in Ulsan in November last year totaled 6,537, about three times higher than the previous month’s 2,273, and December saw 4,892 transactions, maintaining steady activity. Consequently, unsold housing units have sharply declined, with 468 units recorded as of December, a 63.1% decrease compared to 1,269 units in the same month the previous year.

An industry insider stated, "Given Ulsan real estate’s sensitivity to the shipbuilding industry's ups and downs, the upward trend in the real estate market linked to the revival of shipbuilding is expected to continue for some time. Meanwhile, in Dong-gu, where Hyundai Heavy Industries, which leads Ulsan’s shipbuilding and local economy, is located, new housing supply news is also anticipated, drawing considerable attention."

KCC Construction plans to launch sales of 'KCC Switzen Welztower Phase 2' in the Dong-gu area of Ulsan in March.

KCC Switzen Welztower Phase 2 will be located in Dong-gu, Ulsan Metropolitan City, consisting of three buildings ranging from four basement floors to a maximum of 41 floors above ground. The supply will include a total of 200 residential officetel units with exclusive areas ranging from 26 to 59 square meters. The complex features innovative designs optimized for space utilization, offering alpha spaces such as dressing rooms and alpha rooms. Notably, it offers various floor plans including '1.5-room,' '2-room + living room + dressing room,' and '2-room + living room + alpha room,' broadening choices for potential residents.

KCC Switzen Welztower Phase 2 is within walking distance of major educational, shopping, cultural, medical, and business facilities in Ulsan Dong-gu, and is expected to attract significant interest due to its solid and stable rental demand, a key factor for officetels.

The complex is located within walking distance of Jeonha Elementary School and the nation’s largest municipal childcare support center, and prestigious schools in Ulsan such as Hyundai Middle School and Hyundai High School are also accessible on foot, creating an ideal environment for raising children.

Additionally, cultural, convenience, and medical facilities such as Hyundai Department Store Dong-gu Branch, Hanmaeum Hall, Hyundai Arts Center, and Ulsan University Hospital are all within walking distance. Nearby green spaces include Myeongdeok Lake Park with walking trails and a promenade, Badrae Park with a water play area, Yeompo Mountain hiking trails, Hyundai Arts Park, Geunmaeul Reservoir, Daewangam Park, and Ilsan Beach, providing a pleasant living environment.

Furthermore, Hyundai Heavy Industries is just a three-minute walk away, securing a large demand for one- to two-person households. Hyundai Mipo Dockyard, Ulsan College of Science, Ulsan University Hospital, and Hyundai Department Store are also nearby, attracting workers related to these facilities. In addition, the proximity to Ulsan Techno General Industrial Complex, Ulsan Petrochemical Industrial Complex, and Onsan National Industrial Complex is expected to absorb demand from these sectors, further increasing rental demand.

A sales official said, "This sales complex will complete the KCC Switzen brand town in Dong-gu, which has been developing since 2017. Once this complex is supplied, about 1,000 households will form a large-scale KCC Switzen brand town in Dong-gu. As a result, inquiries from buyers seeking to enjoy the brand town premium are considerable, and we expect strong interest in the upcoming sales schedule."

The model house for KCC Switzen Welztower Phase 2 will be set up in Dong-gu, Ulsan Metropolitan City, and is scheduled to open in March.