Solution for Buying a Home Amid High Interest Rates? Spotlight on ‘Namulsan Norway Forest’ with Reasonable Sale Prices

- Average Mortgage Loan Interest Rate at Deposit Banks Recorded at 4.72% in December 2024... Base Rate Remains in the 3.00% Range
- "Nam Ulsan Norway Forest" Offers Lower Sale Prices Compared to Nearby Complexes, Reducing Loan Interest Burden

[‘Nam Ulsan Norwegian Forest’ Night View Perspective]

As the high-interest rate trend has continued for over a year, the burden of loan interest on consumers has increased, leading to a growing number of buyers seeking complexes with reasonable sale prices.

On the 25th, the Bank of Korea announced a base interest rate of 2.75%, maintaining a level above 2.50% for more than a year since August 2022. In particular, according to the "Weighted Average Interest Rate of Financial Institutions" announced on the 24th of last month, the average mortgage loan interest rate (weighted average based on new loan amounts) of deposit banks in December 2024 was recorded at 4.72%. Although it decreased by 0.07% compared to the previous month, it still remains high, resulting in a significant loan interest burden.

Especially in Ulsan Metropolitan City, the average sale price per pyeong has surpassed the 20 million KRW mark. According to Real Estate R114 REPS, the average apartment sale price per pyeong in Ulsan Metropolitan City in 2024 was surveyed at 21.25 million KRW. This is the first time in 2024 that the average sale price per pyeong in Ulsan has exceeded 20 million KRW, representing a 32.9% increase from the previous year's average of 15.98 million KRW. Last year, a total of eight apartment complexes were sold in Ulsan Metropolitan City.

As this situation continues, buyers in Ulsan are tending to look for newly built complexes with relatively less financial burden. Lower sale prices reduce the burden of loan interest. One such complex is "Nam Ulsan Norway Forest," located in the Onyang-eup area. The complex has been set at a relatively affordable sale price, attracting high interest from buyers, and inquiries about the complex continue.

“Nam Ulsan Norway Forest,” supplied through the Onyang Ballista Regional Housing Association joint apartment construction project, is being developed in the Balli area of Onyang-eup, Ulju-gun, Ulsan Metropolitan City. The complex will consist of 12 buildings ranging from 2 basement floors to a maximum of 26 floors above ground, with exclusive areas ranging from 59 to 84 square meters, totaling 848 households, of which 332 units will be offered for general sale.

The complex is priced reasonably, resulting in relatively low financial burden. Compared to newly supplied complexes in Ulsan, the average sale price per pyeong at “Nam Ulsan Norway Forest” is about 8 million KRW cheaper, and a fixed first deposit of 5 million KRW is applied, minimizing the initial financial burden. Because of these factors, it is regarded as a must-consider complex for young office workers, newlyweds, and small-scale investors hoping to purchase a home.

Additionally, large-scale development projects are planned around the complex, promising high future value. Adjacent to the complex, the Onsan National Industrial Complex is undergoing development projects expected to create numerous jobs, including the Shahin Project and the expansion of the secondary battery materials factory by Korea Zinc. In particular, the Shahin Project, scheduled for completion in June 2026, is expected to generate an economic value of approximately 3 trillion KRW, which is anticipated to drive infrastructure expansion in the area.

Currently, various urban development projects are planned near “Nam Ulsan Norway Forest,” raising expectations for regional development. Near the complex, which is planned to accommodate about 14,000 households on approximately 2 million square meters, urban development plans such as the Da-an 3 District Urban Development Zone, Dongsang District Urban Development Zone, and Deoksin Dongsang District Urban Development Zone are underway. Once these development projects are completed, significant population inflow will secure a strong demand base and promote regional development in various aspects, including infrastructure construction. Notably, the Ulju County Hospital is scheduled to open in February 2026, ensuring that medical infrastructure is already in place.

Meanwhile, the model house for “Nam Ulsan Norway Forest” is located on Onyang-ro, Onyang-eup, Ulju-gun, Ulsan Metropolitan City.