- Geoje Apartment Sales Price Index Continues Rising for 18 Consecutive Months...
- Shipbuilding Boom and Major Transportation Developments Are Key Factors... High Interest in ‘Geoje Hanshin The Hue’ Ahead of August Sale
There is a region where the real estate market is experiencing a sharp upward trend. That place is Geoje. Recently, new apartments in the Geoje area have been trading at premiums, and transactions of pre-sale rights are also active. Interest in new sales is also hot.
According to the Korea Real Estate Board, the apartment sales price index in Geoje City has been on a continuous rise for 18 consecutive months since January last year. The upward trend continued in June this year as well. In June, the apartment sales price index in Geoje City rose by 0.17 compared to the previous month, reaching 106.1.
The reason why the Geoje real estate market has caught this upward momentum is analyzed to be due to the shipbuilding boom, which recorded the largest order volume since 2008, along with numerous large-scale transportation benefits that are hard to find in other regions.
According to Clarkson Research, a UK-based shipbuilding and shipping market analysis firm, South Korea secured 49.7% (4.57 million CGT, 97 vessels) of the world's ship orders in the first quarter of this year, nearly half of the global total. The 49.7% share recorded by our shipbuilding industry is the highest since Clarkson Research began compiling data in 1996, in 26 years.
Geoje City also has many large-scale transportation benefits that are rarely seen in other regions. First, the construction project of the Southern Inland Railway, which connects Geoje City and Gimcheon City in Gyeongbuk Province by high-speed rail, has been actively promoted. This project, with a national budget of 4.8015 trillion KRW, is scheduled to break ground in 2024. Once the line opens, it is expected to connect Geoje to Seoul in about 2 hours and 50 minutes via KTX and SRT.
Additionally, in February this year, the Ministry of Land, Infrastructure and Transport announced a finalized plan including the extension of the Tongyeong-Daejeon Expressway to Geoje in the '2nd Expressway Construction Plan.' This project involves extending a 4-lane, 30.5 km road from Yongnam-myeon in Tongyeong City to Yeoncho-myeon in Geoje City, a long-awaited project for Geoje City. The project cost is expected to be 1.8811 trillion KRW.
That's not all. In Geoje City, the Southeast New Airport is also being promoted on Gadukdo Island, which is connected to Geoje via the Geoga Bridge. In April, the Ministry of Land, Infrastructure and Transport finalized the 'Gadukdo New Airport Construction Promotion Plan.' With a total project cost of 13.7 trillion KRW, the Gadukdo New Airport construction plan is about to start the basic plan establishment phase.
Accordingly, outside investors are flocking to the Geoje real estate market. According to the Korea Real Estate Board, among the total 2,287 apartment sales transactions in Geoje City from January to May this year, about 47% (1,078 transactions) were conducted by outsiders from places like Seoul. This is more than 20% higher than the approximately 27% outsider investment rate in the Gyeongnam region during the same period.
Especially, transactions of pre-sale rights have been active. In the past two and a half years, the total pre-sale rights transactions for four complexes launched in Geoje City until the fourth week of July this year reached 510 cases. The order is Geoje Bando Yubora (162 cases), The Sharp Geoje Declive (140 cases), ePyeonhansesang Geoje Euro Island (122 cases), and ePyeonhansesang Geoje Euro Sky (86 cases).
This is why demand is focused on 'Geoje Hanshin The Hue,' the first 'Hanshin The Hue' brand complex introduced by Hanshin Engineering & Construction in Geoje City, ahead of its August sale.
Hanshin Engineering & Construction plans to sell 'Geoje Hanshin The Hue,' located in the Ajoo-dong area of Geoje City, Gyeongnam, in August. It consists of 6 buildings, ranging from 2 basement floors to 25 floors above ground, with a total of 547 apartments of exclusive areas 84㎡ and 99㎡. By exclusive area, there are △84㎡A 157 units △84㎡B 122 units △84㎡C 123 units △99㎡A 72 units △99㎡B 73 units, composed of the popular 84㎡ type and the medium-to-large 99㎡ type suitable for whole families.
Geoje Hanshin The Hue boasts a one-stop location with excellent educational and living conditions. Naegok Elementary School is located right in front of the complex, providing safe commuting conditions. Daewoo Elementary School, the only private elementary school in Geoje City, and the prestigious Geoje Middle and High Schools are nearby, ensuring an excellent educational environment.
Moreover, through a contract with the leading domestic education brand Jongno M School, premium educational services will be provided within the complex with a 50% discount on tuition fees, making Geoje Hanshin The Hue poised to become a representative education-specialized complex in the region. Additionally, within a 1.5 km radius, there are numerous marts, banks, hospitals, and academies concentrated in the commercial and convenience facilities, highlighting excellent living conditions.
Proximity to workplaces is also excellent. Okpo National Industrial Complex, where Daewoo Shipbuilding & Marine Engineering's Okpo Shipyard is located (including partner companies, 33,587 employees), is about a 5-minute drive away. Also, Jukdo National Industrial Complex, where Samsung Heavy Industries Geoje Shipyard is located (including partner companies, 32,866 employees), can be reached by car in about 10 minutes.
The well-connected transportation network is also noteworthy. Through Songjeong IC near the complex, wide-area travel to Busan, Changwon, Gimhae, and Tongyeong is convenient, and within Geoje City, living areas can be quickly accessed via Ajoo Tunnel, Geoje-daero, and National Road No. 14. Furthermore, the new Ajoo-dong bypass lane, which allows quick exit before entering Ajoo Tunnel on National Road No. 14, is an additional transportation benefit expected to further improve traffic conditions.
'Geoje Hanshin The Hue' also features excellent product quality befitting the symbolic first Hanshin The Hue brand complex in Geoje City. It applies three-sided balconies (in some types) with excellent usable area and popular slab-type designs throughout, and the complex is arranged mainly facing south to maximize lighting and ventilation efficiency.
The low threshold for subscription and high investment value are also notable factors. Geoje City is a non-regulated area, so the complex allows immediate resale upon contract. Also, anyone aged 19 or older who has been a member of a subscription savings account for more than six months can apply, including homeowners and household members. For the 84㎡ type, 60% of winners are selected by lottery, and for the 99㎡ type, 100% are selected by lottery, opening subscription opportunities even for those with low points.
Geoje Hanshin The Hue plans to open a model house.
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