"Land Near Ulleung Airport Reaches 50 Million Won per 3.3 sqm"... Prices Rival Major Metropolitan Areas Despite Transaction Freeze [Real Estate AtoZ]

Ulleungdo Real Estate Prices Continue to Rise Despite a "Transaction Cliff"
Land Prices in Ulleungdo Soar Over Three Years, Now Entering a Gradual Uptrend
Property Ownership Transfers Plunge 70% in Three Years... Transactions Disappear
Tourist Numbers Decline, Population Hits Record Low... Local Economy in Retreat
Corporate Purchases Plummet as PF Loans Dry Up... Liquidity Constraints
"Market Stagnation Unavoidable Until Airport Completion"

"Transactions? There are none these days. There are no sellers, and no buyers either."

LH rental housing in Dodong-ri, Ulleung-gun, Gyeongbuk. Roboprint.

On November 7, a representative from a real estate agency near Dodong Port in Ulleung-gun commented on the current market situation, saying, "Land prices in Ulleungdo are already extremely high," and added, "The positive impact of the airport has already been largely reflected, so it will be difficult for prices to move significantly for the time being." According to this agency, land prices in Sadong-ri, near the planned Ulleung Airport, are approaching 50 million won per 3.3 square meters. In Dodong-ri, the busiest commercial district where Ulleung County Office and other institutions are located, prices are in the 30 to 40 million won range per 3.3 square meters. This is comparable to commercial districts in major areas of the Seoul metropolitan region.

Ulleungdo has been a region where land prices soared, driven by the anticipated benefits of the airport. When construction began on Ulleung Airport in 2020, the officially announced standard land price in Ulleung-gun rose by 14.49%, more than double the national average of 6.33%. This was followed by double-digit increases for three consecutive years: 11.66% in 2021 and 13.54% in 2022. In 2025, prices rose by 3.56%, ranking first among cities and counties in North Gyeongsang Province. Due to the volcanic island's nature, there is little usable land, and as demand surged, prices skyrocketed.

This trend contrasts with the increasingly sluggish real economy of Ulleungdo. The local economy is struggling due to a decrease in tourists and population outflow. The number of tourists visiting Ulleungdo dropped from 461,375 in 2022 to 380,522 last year, and for January to July 2025, it was 209,006, a 9.6% decrease compared to the same period last year. The suspension of some passenger ferry routes and this year's "overcharging controversy" have also negatively affected the situation. As of September, Ulleungdo's population stood at 8,860, the lowest ever recorded. Despite these circumstances, real estate prices have continued to rise, driven by expectations surrounding the airport.

However, these days, even the real estate market is at a standstill with virtually no transactions taking place. According to the Supreme Court's real estate registry information, there were 123 applications for real estate ownership transfer (sales) in Ulleung-gun from January to October this year, averaging 12 per month. This represents a 45% decrease from 224 cases during the same period last year. Compared to three years ago, when anticipation for the airport was high (404 cases), the number has dropped by 69.6%.

The local real estate industry points to a lack of liquidity as the main reason for sluggish transactions. A representative from a real estate agency said, "It used to be common for corporations to purchase land worth billions of won in Ulleungdo, but recently, as banks have tightened project financing (PF) loans, inquiries have noticeably decreased." He added, "The gap between the officially announced land price and actual transaction prices is so large that it is difficult to secure mortgage loans."

Land transactions account for over 70% of the real estate market in Ulleungdo. Due to the island's characteristics, the housing market is focused more on real demand than investment, making the "transaction cliff" even more severe. New private housing supply is difficult due to the high cost of transporting materials and labor, and it is rare for homeowners to put their properties up for sale. As a result, the housing supply rate stands at 74.8% as of 2023, the lowest in the country. Prices are also high. Recently, a 60-square-meter villa listed for sale in Ulleungdo was priced at 400 million won, which is higher than in some outlying areas of Seoul.

Another local real estate agent commented, "A significant additional price increase will only occur once the airport is actually completed and visible," and predicted, "Until the airport opens, the market will remain stagnant."