- Amid mixed real estate trends, Gyeongsan in Gyeongbuk shows active transactions and rising sale prices attracting attention
- Close to work and residence, interest-free intermediate payments, 'Gyeongsan 2nd I-Park' worth considering for catching two birds with one stone
As the real estate market nationwide continues to show mixed trends with decreasing transactions and gradually declining house prices, a positive breeze is blowing through the real estate market in Gyeongsan City, Gyeongsangbuk-do.
According to the Korea Real Estate Board, the average apartment sale price nationwide dropped every month from 427.65 million KRW in January this year to 424.18 million KRW in August. The Seoul metropolitan area also saw a decline from 627.13 million KRW to 621.67 million KRW, and the provincial areas fell from 255.98 million KRW to 254.17 million KRW.
In contrast, the atmosphere in Gyeongsan, Gyeongbuk was different. Apartment sale prices in Gyeongsan showed an upward trend. According to the Ministry of Land, Infrastructure and Transport’s actual transaction prices, in September, a 131㎡ unit at ‘Gyeongsan 1st I-Park’ was sold for 840.65 million KRW (25th floor), and in October, an 84㎡ unit was sold for 465 million KRW. This represents premiums of approximately 10 million KRW and 3 million KRW respectively over the original sale prices. Additionally, a 59㎡ unit at ‘Gyeongsan Hayang Kumho Eoullim’ was traded for 240.7 million KRW, about 20 million KRW higher than the original price.
The reason why real estate transactions are active and sale prices are rising in Gyeongsan, Gyeongbuk, is interpreted as a result of abundant job opportunities attracting steady demand. According to population statistics from the Ministry of the Interior and Safety, Gyeongsan’s population increased every year over the past decade from 2012 to 2021. The population numbers were △246,358 in 2012, △253,968 in 2014, △258,037 in 2016, △261,093 in 2018, △263,728 in 2020, and nearly 270,000 last year. Furthermore, according to Gyeongsan City Hall, the total population reached 280,000 as of July this year.
In Gyeongsan, Gyeongbuk, there are abundant jobs with the largest economic free zone in Gyeongbuk, the Gyeongsan Knowledge Industry District, and the Gyeongsan 1st, 2nd, 3rd, and 4th general industrial complexes, creating excellent conditions for proximity between residence and workplace. Specifically, the Gyeongsan 1st general industrial complex covers 1.58 million㎡, the 2nd covers 490,000㎡, the 3rd covers 1.5 million㎡, and the 4th covers 2.4 million㎡, totaling about 6 million㎡. As of July 2022, approximately 16,000 people were reported to be working there.
An industry insider stated, “With a positive breeze blowing through the Gyeongsan, Gyeongbuk real estate market, if new complexes offering financial benefits such as interest-free intermediate payments, which have recently gained attention, are introduced, the market is expected to warm up even more.”
Meanwhile, on the 7th, a complex officially opened its model house and began full-scale sales. Located near the Gyeongsan general industrial complex with good proximity between residence and workplace, HDC Hyundai Development Company’s ‘Gyeongsan 2nd I-Park’ offers financial benefits such as interest-free intermediate loans and free balcony expansion, reducing the financial burden on buyers.
‘Gyeongsan 2nd I-Park’ is the second complex following the successful sale of ‘Gyeongsan 1st I-Park (977 households)’ last year. If ‘Gyeongsan 2nd I-Park (745 households)’ is completed, a large-scale ‘I-Park’ brand town with a total of 1,722 households is expected to be formed in the area.
Especially in Gyeongsan City, Gyeongsangbuk-do, anyone aged 19 or older who has been subscribed to the comprehensive housing subscription savings for more than six months can apply for the housing lottery regardless of whether they are the head of household, household member, or homeowner. There are no restrictions on re-winning the lottery, and there is no separate resale restriction period.
Meanwhile, ‘Gyeongsan 2nd I-Park,’ located in the Amlang district of Gyeongsan City, Gyeongsangbuk-do, will be built with a total of 745 households in buildings up to 33 floors high, with unit sizes ranging from 84 to 134㎡. The sales schedule starts with special supply on October 17, followed by first priority subscription on the 18th and second priority on the 19th. The winners will be announced on the 26th, and the official contracts will be signed over three days from November 8 to 10.
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