Ulsan Faces Supply Crunch, Growing Interest in 'Hanwha Forena Ulsan Mugeo' as New City-Scale Developments Advance

- Ulsan's new housing supply falls short by about 23% of appropriate demand... Supply crunch becomes reality
- Supply is blocked, but positive developments emerge... Demand shifts toward newly built apartments in Ulsan

Recently, the Ulsan real estate market has been experiencing a supply crunch, with the number of new housing units falling short of demand. As a result, there are expectations that demand will increasingly concentrate on newly built apartment complexes. This trend is further fueled by a series of development projects that are drawing significant attention.

In particular, development projects in the Mugeo-dong area of Nam-gu are attracting notice. The Mugeo Samho District (planned) has already received approval for its land readjustment plan and is now at the pre-construction stage, aiming for completion in 2028. The Mugeo Okdong District (underway) is a residential development project closely linked to the Okdong living zone, integrating administrative, educational, and commercial facilities. This project has received a 'conditional acceptance' decision.

Additionally, if the three projects, including the redevelopment of the Hanwha Chemical company housing site, proceed as planned, they are expected to form a residential town comparable to a 'mini-new city.' This would not only reshape the value of the southern Ulsan living area but also establish it as an emerging residential hotspot within the region.

With these large-scale development projects coinciding, the Ulsan real estate market has shown a rapid rebound, particularly centered around Mugeo-dong. On July 10, the Busan-Yangsan-Ulsan metropolitan railway project passed the government's preliminary feasibility study, and with the final confirmation of expanded transportation infrastructure, a series of positive news stories have further boosted the market.

According to KB Real Estate's July monthly housing price trends, Ulsan apartment sale prices rose by 0.19% compared to the previous month, marking five consecutive months of increases. This stands in stark contrast to major metropolitan cities such as Busan and Daegu, which saw declines during the same period.

Another factor driving demand is that the local real estate market has largely avoided regulatory restrictions. Ulsan is not directly affected by the '6.27 Measures,' and the implementation of the third phase of the Stress DSR has also been postponed until the end of the year. As a result, there are expectations of a 'balloon effect,' with both end-users and investors shifting their focus to regional markets.

However, the supply crunch in Ulsan is pronounced. According to the real estate platform 'Asil,' the number of apartments scheduled for occupancy in Ulsan in 2025 is approximately 4,215 units, which is about 23% short of the appropriate demand. Especially in the southern district, where there is a strong preference for new buildings, more than 90% of complexes are over 10 years old, and the pace of redevelopment is slow, raising concerns about a supply gap.

Perspective view of Hanwha Forena Ulsan Mugeo provided by Hanwha Construction Division

Amidst this, news of new apartment launches is attracting the attention of buyers. 'Hanwha Forena Ulsan Mugeo,' to be supplied in the Mugeo-dong area of Nam-gu, Ulsan, is a large-scale complex consisting of eight buildings with three basement levels and 25 above-ground floors, totaling 816 units. The exclusive floor areas are 84㎡, 99㎡, 109㎡, and 166㎡, with a focus on the highly sought-after 84㎡ type. The launch is scheduled for August.

This project is particularly noteworthy as it will redevelop the former Hanwha Chemical company housing site?once a coveted address among Ulsan residents?into the city's first Forena-branded complex, drawing intense interest from local buyers. Furthermore, with large-scale developments such as the adjacent Mugeo Samho District (planned) and Mugeo Okdong District (underway), the creation of a mini-new city residential town is expected to accelerate, starting with this complex.

The educational environment is also excellent. Over 10 elementary, middle, and high schools?including Samho Elementary, Okhyeon Elementary, Samho Middle, Seonggwang Girls' High, and Ulsan Jeil High?are located nearby. The renowned 'Okdong Academy District,' a leading school zone in the region, is also within a 10-minute drive.

Additionally, the complex will provide 1.6 parking spaces per unit, and a sky lounge will be located on the 25th floor. The approximately 3,300-square-meter community facility will include a guest house, laundry cafe, and other amenities, while every unit will have its own storage space, maximizing usability.

A local real estate industry official stated, "Ulsan's value as a residential area is being re-evaluated as the supply crunch coincides with a series of development projects," adding, "For the time being, demand is expected to concentrate on newly built complexes with strong locations and brands."