Average Annual Housing Supply in the Past 10 Years at Only Half the Previous Level
This year, the number of apartment units scheduled for occupancy in the Gwangju area is expected to decrease by more than 36% compared to last year. Before the increase in occupancy volume due to the completion of large-scale private park and redevelopment projects next year, Gwangju is expected to experience a "year of supply shortage" this year.
According to a survey by Sarangbang Real Estate, a real estate platform in Gwangju and Jeonnam, the number of apartment units scheduled for occupancy this year is 5,801. This is about 36% less than last year's occupancy volume of around 9,000 units.
The average number of apartment units occupied annually in Gwangju over the past 10 years was 10,074, meaning this year's occupancy volume is just slightly more than half of that. This is the second lowest volume after 2023, when only 4,415 units were occupied.
By district, the occupancy volumes are as follows: 2,025 units in four locations in Gwangsan-gu, 1,467 units in seven locations in Nam-gu, 1,296 units in four locations in Seo-gu, 587 units in three locations in Buk-gu, and 426 units in two locations in Dong-gu.
Choi Hyunwoong, manager at Sarangbang Real Estate, said, "The main reason for the decrease in occupancy volume this year is the significant reduction in new supply and construction starts due to the regulated status of the area from 2021 to 2022." He added, "The decrease in new occupancy volume could further drive up jeonse prices, which have been rising recently."
He continued, "Next year, the occupancy volume is expected to return to around 10,000 units, and since there are still many unsold properties on the market, the situation where supply exceeds demand is likely to continue for the time being."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
