Nationwide Apartment Prices Double in 10 Years... Homebuyers Show Interest in 'The Sharp Yeondong Avenue'

Jeju Rises 3.4 Times, Highest Among Metropolitan Cities and Provinces

[10-Year Nationwide Sale Price Increase and Decrease Trends]

According to the Housing and Urban Guarantee Corporation and KB Real Estate, the nationwide pre-sale prices have doubled over the past 10 years (compared to 2013). The average pre-sale price per 3.3㎡ was 7.99 million KRW in 2013, and as of the end of May this year, it was recorded at 15.86 million KRW.

The area with the largest increase during this period was Jeju, outside the Seoul metropolitan area, where prices rose 3.4 times. The second highest increase was in Gwangju Metropolitan City, which rose 2.7 times. The smallest increase was in Incheon Metropolitan City, which rose 1.5 times, and there was no metropolitan city where the average pre-sale price decreased.

Jeju, where pre-sale prices increased the most, also saw the average apartment sale price rise by 2.19 times during this period.

According to the monthly average apartment sale price statistics provided by the Korea Real Estate Board, the average monthly apartment sale price in Jeju was 142.28 million KRW in 2013, and from January to May 2023, it recorded 311.81 million KRW.

The reason why pre-sale prices and apartment sale prices in Jeju have risen so much is that the number of people visiting Jeju has increased accordingly. Additionally, demand for Jeju real estate has grown due to factors such as the investment immigration program, leading to a significant increase in Jeju's population.

According to Statistics Korea, Jeju's population, which was 594,000 in 2013, increased to 677,000 as of the end of May 2023. While population decline in local areas is a concern, the continuous influx of people to Jeju has driven up real estate prices.

Pre-sale prices are expected to rise further. This is because the costs of construction raw materials such as cement and rebar are increasing, along with rising labor costs.

Of course, real estate prices do not rise indiscriminately. Currently, 22 sites are under development or planned for development in areas such as Yeondong and Nohyeong-dong in Jeju City, and there are also movements to promote street housing maintenance projects throughout the old downtown area.

Moreover, major development projects such as Jeju’s Second Airport, the new cruise port development project, and the tram project are expected to further increase the value of Jeju real estate beyond its current level.

An industry insider said, “As COVID-19 prolonged, Jeju’s representative tourism industry was weakened, and the Jeju real estate market experienced a period of stagnation. However, after going through the endemic phase and repeated recovery, it is regaining its position. Although there will be fluctuations depending on timing, if you are interested in Jeju real estate, it is advisable to secure a position before the recovery accelerates further, as pre-sale and sale prices have risen.”

Posco E&C is attracting attention by launching Jeju’s first ‘The Sharp’ apartment in Yeondong, Jeju City, the new central area known as Jeju’s Myeongdong.

‘The Sharp Yeondong Avenue,’ planned for pre-sale by Posco E&C (formerly Posco Construction), is located throughout Yeondong and consists of 204 households with exclusive areas of 69 and 84㎡, ranging from 5 basement floors to 18 above-ground floors. Commercial facilities will also be established from basement level 1 to ground level 1.

Yeondong is regarded as Jeju’s representative central commercial district. It boasts ‘Nuwemaru Street’ (formerly Baojen Street), known as a small China within Jeju, the large-scale complex shopping mall ‘Nine Mall,’ numerous hotels including the Grand Hyatt Jeju, and close proximity to Jeju International Airport, offering abundant foot traffic and a high-end commercial area.

Since this is Posco E&C’s first ‘The Sharp’ apartment in Jeju under its new corporate identity, it announced plans to apply a high-quality, high-end premium product never seen before, raising expectations even higher.

For detailed information about ‘The Sharp Yeondong Avenue,’ please refer to the official website.