Outsiders Shopping for Homes... Asan, Chungnam Ranks 'Nation's Top'

759 Cases in Three Months... Account for 'Half' of All Transactions

[Asia Economy Reporter Kangwook Cho] Over the past three months, the region with the highest proportion of apartment purchases by non-locals nationwide was Asan-si, Chungcheongnam-do. Out of every 10 apartments there, 5 were bought by non-locals.

According to the apartment sales transaction status from the Korea Real Estate Board on the 5th, among the 1,509 apartment sales transactions in Asan-si, Chungnam, from December last year to February this year, 759 were purchased by non-locals. The proportion of purchases by non-locals was 50.2%, ranking first nationwide.

Next, Seobuk-gu, Cheonan-si, Chungnam ranked second with 600 out of 1,300 transactions (46.1%), followed by Gimhae-si, Gyeongnam with 583 out of 1,734 transactions (33.6%) in third place. Wonju-si, Gangwon, which was first last year, ranked fourth with 559 out of 1,462 transactions (38.2%). It is understood that non-locals' purchases of apartments in non-regulated provincial areas are closer to speculative purposes than actual residence. This is also a balloon effect caused by loan restrictions and other regulations in the metropolitan area.

Prices are also on the rise. An apartment in Seohae Grandble 1st Complex, Kwon-gok-dong, Asan-si, Chungnam, with a net area of 84.4973㎡, was traded for 275 million KRW last month, rising by 25 million KRW in two months. Also, an apartment in Guseong I-Park, Guseong-dong, Dongnam-gu, Cheonan-si, Chungnam, with a net area of 80.2307㎡, was traded for 225 million KRW in February, up 15 million KRW compared to December last year.

An industry insider said, "There are many non-regulated areas where apartment subscription and loans are relatively free, so investment demand from non-locals is pouring in." He added, "Especially Chungnam has better accessibility to Seoul than other provinces and is surrounded by investments from large corporations and various development prospects."