"No Large Units Available"... Popularity of Mid-to-Large Apartments in Provincial Areas

Major and Medium-Sized Supply Remains at 7% Over the Past 3 Years

The popularity of medium- to large-sized apartments is becoming more pronounced in local housing markets (excluding metropolitan cities). This is analyzed to be because the price difference between small- to medium-sized apartments and medium- to large-sized apartments is not significant compared to the metropolitan area, resulting in abundant demand for upgrading to larger homes, while supply remains insufficient, increasing scarcity.

According to Real Estate R114 data on the 16th, as of February this year, the average sale price of medium- to large-sized apartments (exclusive area over 85㎡) in other local areas was 468.47 million KRW, with a price difference of 162.8 million KRW compared to small- to medium-sized apartments (exclusive area over 60㎡ up to 85㎡, 305.67 million KRW). Meanwhile, during the same period, the price difference between medium- to large-sized apartments (1.29408 billion KRW) and small- to medium-sized apartments (851.33 million KRW) in the metropolitan area was 442.75 million KRW.

[Infographic provided by The PR Communication]

Medium- to large-sized apartments in local areas face a shortage of supply relative to high demand. Over the past three years (2021?2023), medium- to large-sized apartments supplied in local areas accounted for about 7% (17,358 households) of the total supply (247,478 households). The proportion of medium- to large-sized apartments among the planned supply over the next three years (207,360 households) is also only 12% (24,785 households).

Kwon Il, head of the research team at Real Estate Info, said, “While the preference for medium- to large-sized apartments in local housing markets is intensifying, the ongoing supply shortage is expected to increase demand for complexes offering medium- to large-sized units this year. Buyers planning to upgrade to larger homes within the region should focus on branded complexes considering differentiated designs.”

Meanwhile, Shinyoung plans to launch ‘Shinyoung Ziwell Prugio Technopolis Central’ in Cheongju-si, Chungbuk, in April. The complex will consist of 1,034 apartment units with exclusive areas ranging from 84 to 130㎡ across basement 2 floors to a maximum of 49 floors above ground, and 234 officetel units with exclusive areas of 108㎡. This sale targets the apartments.

In Jeongeup-si, Jeonbuk, Daewoo E&C will supply ‘Jeongeup Prugio The First.’ It consists of 6 buildings from basement 2 floors to a maximum of 29 floors above ground, with 577 units of 84㎡ exclusive area and 130 units of 110㎡ exclusive area. Special supply starts on the 20th, followed by first-priority subscription on the 21st.

Additionally, complexes including medium- to large-sized units such as ‘Hillstate Mokpo’ (770 units, exclusive area 99?143㎡) in Mokpo-si, Jeonnam, and ‘e-Pyeonhansesang Wonju Primo One’ (572 units, exclusive area 59?102㎡) in Wonju-si, Gangwon, are scheduled to be launched in the first half of this year.