Real Estate Market in Local Areas in the First Half of This Year: Divergent Trends Between Metropolitan Cities and Other Regions

H1: First Half Local Apartment Sale Price Change Rate
Metropolitan Cities 0.04%↓, Other Local Areas 0.06%↑
Subscription Market Also Shows Divergent Trends

Source=Real Today

[Asia Economy Reporter Hwang Seoyul] The atmosphere in the local real estate market showed contrasting trends between the five major metropolitan cities and other local areas.

On the 4th, real estate research firm Realtoday analyzed weekly time-series data from KB Real Estate and found that in the first half of this year (as of June 27), the apartment price change rate in the five major metropolitan cities was -0.04%, indicating a downward trend. In contrast, other local areas (excluding the metropolitan area and major cities) recorded an increase of 0.06%.

Source=Real Today

Looking at detailed regions, Daegu showed -0.11%, Ulsan -0.06%, Busan -0.04%, Daejeon -0.04%, and Gwangju 0.08%, with most showing negative growth rates. However, local small and medium-sized cities showed positive signs in all areas in the following order: Gangwon 0.21%, Jeonbuk 0.16%, Gyeongbuk 0.07%, Chungbuk 0.04%, Chungnam 0.03%, Gyeongnam 0.02%, and Jeonnam 0.01%.

The contrasting atmosphere was also evident in the subscription market. According to Korea Real Estate Agency's Subscription Home, ‘Dadae Richeville’ in Saha-gu, Busan, which was offered in April, received only 118 applications for 252 units, resulting in a shortage of first-priority subscriptions. On the same day, ‘Daegu Station Xi The Star’ supplied in Buk-gu, Daegu, also remained unsold with three out of six housing types undersubscribed.

On the other hand, ‘Yangsan Sasong District Woomeerin’ built in Yangsan, Gyeongnam, during the same period, closed all types with a first-priority subscription rate averaging 19 to 1. Similarly, ‘Asan Belcore Switchen’ in Asan, Chungnam, offered around the same time, closed first priority with a respectable average subscription rate of 8.5 to 1.

An industry insider said, "Most metropolitan cities are designated as regulated areas, so the gap with other local areas, which are relatively free in terms of subscriptions and loans, has not been reduced." He added, "Although some metropolitan cities such as Daejeon and Daegu were removed from the speculative overheating district designation in July, it is expected that demanders will find it difficult to enter because these areas are not as free from regulations as other local areas."