- Geoje City Apartment Sale Price Index Rises for 18 Consecutive Months Until May This Year... Subscription Market Also Active
- Offshore Investment Rally Driven by Shipbuilding Boom and Major Development Projects... New Sales Also Attract Interest
The real estate market in Geoje is catching the spring breeze. Geoje City's main industry, shipbuilding, has entered a boom period, recording the largest order volume since 2008 for the second consecutive year. Additionally, numerous large-scale development projects and the city's benefit from a non-regulated balloon effect are cited as key factors.
According to the Korea Real Estate Board, the apartment sales price index in Geoje City has risen for 18 consecutive months since recording 96.88 in December 2020, reaching 105.89 last month. This is the highest level in about four years since August 2018, when it was 104.66.
Unsold inventory has also sharply decreased. The pre-sale unsold units in Geoje City, which were around 497 units in July last year, dropped to 159 units in September, 18 units in October, and as of this year, there are no unsold units remaining. Particularly, looking at post-completion unsold units, which mostly consist of units completed before 2018, the number dropped sharply from nearly 1,449 units in July last year to 789 units in November, and further down to 580 units in May this year. Consequently, Geoje City was removed from the unsold housing management area in December last year, after being designated as such in February 2017 for 4 years and 10 months.
The subscription market has also changed dramatically. In April last year, the ‘e-Pyeonhansesang Geoje Euro Sky’ in Gohyeon-dong, Geoje City, received 9,911 first-priority applications for 683 units (excluding special supply), resulting in an average first-priority competition rate of 14.51 to 1. Considering that the ‘e-Pyeonhansesang Geoje Euro Island’ complex, located right next to it, had a first-priority competition rate of 1.82 to 1 in October 2019 about a year and a half earlier, this is an impressive figure about eight times higher.
A major driving force behind the rising value of Geoje City's real estate market is the increased investment rally from non-local buyers. According to the Korea Real Estate Board, the proportion of non-local apartment transactions in Geoje City reached 62.4% last year. Out of a total of 6,609 apartment sales transactions, 4,125 were purchases by residents from outside the jurisdictional cities and provinces, including Seoul and other areas outside Geoje City in Gyeongnam Province. This is more than double the 30.8% (864 cases) non-local transaction ratio in 2019, and in the first quarter of this year, the non-local investment ratio in Geoje City remained above half at 50.89%.
In fact, the domestic shipbuilding industry is experiencing a super boom for the first time in 10 years. Due to the recent strengthening of regulations by the International Maritime Organization (IMO), demand for LNG-powered ships, which use eco-friendly fuel, has surged worldwide. Our shipbuilding industry, leveraging LNG ship technology, has been successful in consecutive orders. Domestic shipbuilders secured nearly half of the ships ordered worldwide in the first quarter of this year.
In addition to this shipbuilding boom, Geoje City also has major transportation benefits. First, the construction project for the Southern Inland Railway, connecting Geoje City and Gimcheon City in Gyeongbuk Province by high-speed rail with a national budget of 4.8015 trillion KRW, is being actively promoted and is expected to break ground as early as 2024. Once this line opens, it will be possible to travel from Geoje to Seoul in about 2 hours and 50 minutes via KTX and SRT.
Meanwhile, Hanshin Engineering & Construction plans to launch ‘Geoje Hanshin The Hue’ in July in the Ajoo-dong area of Geoje City, Gyeongnam Province. This complex, the first new supply in Ajoo-dong in seven years, consists of six buildings ranging from two basement floors to 25 floors above ground, with a total of 547 apartments of 84 and 99 square meters in exclusive area. The complex is composed of highly preferred medium- to large-sized units.
Geoje Hanshin The Hue boasts a one-stop location advantage. Naegok Elementary School is located right next to the complex, and Daewoo Elementary School, the only private elementary school in Geoje City, and the prestigious Geoje Middle and High Schools are nearby, providing an excellent educational environment. Additionally, within a 1.5 km radius, there are numerous marts, banks, hospitals, and academies, creating a dense commercial and convenience facility area.
The well-connected transportation network is also noteworthy. Through the nearby Songjeong IC, it is convenient to travel to metropolitan areas such as Busan, Changwon, Gimhae, and Tongyeong. The Ajoo Tunnel, Geoje-daero, and National Road No. 14 allow quick access within Geoje City’s living area. Furthermore, a new right-turn interchange in Ajoo-dong that provides fast access to Geoje-daero is planned, which will further improve transportation conditions.
The complex also offers excellent product quality befitting the symbolic first Hanshin The Hue complex in Geoje City. It applies three-sided balconies (in some types) with excellent usable area and preferred slab-type designs throughout, and the complex is arranged mainly facing south to maximize lighting and ventilation efficiency.
Meanwhile, Geoje Hanshin The Hue will prepare a model house.
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