Low Supply of Medium to Large Units
Higher Subscription Competition Rate Compared to Small Units
Preference for mid-to-large-sized apartments is increasing in the local pre-sale market. Demand for spacious and comfortable living spaces is rising, while the supply of mid-to-large-sized apartments remains limited.
According to real estate data from Real Estate R114 on the 26th, the total number of mid-to-large-sized apartments pre-sold in local metropolitan cities over the past five years (March 2018 to March 2023) was 23,351 units. This accounts for only about 7% of the total 329,367 pre-sale units. By region, the supply of mid-to-large-sized apartments over five years was △Gwangju (3,098 units) △Busan (5,321 units) △Ulsan (912 units) △Daegu (11,033 units) △Daejeon (2,987 units).
Due to the limited supply, competition for subscription is fierce. According to Real Estate R114, in the past year, 4,214 mid-to-large-sized apartments (general pre-sale) in local metropolitan cities attracted a total of 42,818 applicants, recording an average competition rate of 10.16 to 1. This was higher than the average competition rate of 7.49 to 1 for small-to-medium-sized apartments in local metropolitan cities during the same period.
In February this year, the ‘Eco Delta City Prugio Rin’ pre-sale in Gangdong-dong, Gangseo-gu, Busan Metropolitan City, recorded the highest competition rate of 25.56 to 1 for mid-to-large-sized units with an exclusive area of 103.21㎡. In October last year, the ‘e-Pyeonhansesang Gunsan Diocean Luce’ in Guam-dong, Gunsan-si, Jeollabuk-do, recorded an average competition rate of 0.75 to 1, while the mid-to-large-sized unit with an exclusive area of 155.94㎡ showed the highest competition rate of 23.67 to 1.
The increase in demand for mid-to-large-sized apartments is attributed to the growing need for spacious and comfortable living spaces after COVID-19 and the lower entry barrier for purchase compared to mid-to-large-sized apartments in the metropolitan area.
In March this year, the average sale price of mid-to-large-sized apartments in the metropolitan area was 28.17 million KRW per 3.3㎡, while the average sale price of mid-to-large-sized apartments in local metropolitan cities was 17.07 million KRW per 3.3㎡, more than 11 million KRW lower than the metropolitan area.
A representative from Four Ad One stated, "While the popularity of mid-to-large-sized apartments in local metropolitan city markets is increasing, the ongoing supply shortage is expected to raise demand interest in pre-sale complexes offering mid-to-large-sized units this year. For those considering mid-to-large-sized complexes, it would be beneficial to focus on branded complexes equipped with various community facilities and specialized floor plans."
Meanwhile, GS Construction plans to pre-sell ‘Sangmu Central Xi’ in May on the former Honam University Ssangchon campus site in Seo-gu, Gwangju Metropolitan City. The complex will consist of 14 buildings ranging from 3 basement floors to a maximum of 30 floors above ground, with a total of 903 units sized between 84 and 247㎡. All units will be mid-to-large-sized. The complex is located near Uncheon Station on Gwangju Subway Line 1, and the nearby Sangmu Station is planned to be a transfer station for Gwangju Subway Line 2, scheduled to open in 2026.
Hoban Construction plans to pre-sell ‘Hoban Summit Golden Sky’ in April in Hwanggeum-dong, Suseong-gu, Daegu Metropolitan City. This complex will consist of 6 buildings ranging from 5 basement floors to 43 floors above ground, with a total of 677 apartment units sized between 84 and 150㎡ and 146 officetel units. It is located near Hwanggeum Station on Subway Line 3, with elementary, middle, and high schools all accessible by walking.
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