"Standard Apartment Price Surpasses 1.2 Billion Won"... Ulsan Apartment Market Tops Weekly Growth Rate, Overtaking Seoul [Real Estate AtoZ]

Highest Growth Rate Among 17 Metropolitan Cities and Provinces... First Time This Year
Record-High 1.2 Billion Won at Sinjeong-dong Aileen's Garden
"Supply Drought" Meets Local Economic Recovery and Regulatory Spillover from Seoul
Subscription Market Sees Competition Ratios Exceeding 10 to 1

Ulsan Metropolitan City has ranked first among all metropolitan cities and provinces in South Korea for weekly apartment price growth, according to Korea Real Estate Board statistics, marking the first time this year. In key locations such as Nam-gu, the market is heating up, with standard-sized apartments (exclusive area of 84 square meters) selling for as much as 1.2 billion won. The recovery of the local economy, a shortage of supply, and the ripple effects of regulatory changes in the Seoul metropolitan area are converging, leading to assessments that Ulsan is emerging as a key driver of regional price increases.

Hanwha Forena Ulsan Mugeo, which recorded an average subscription competition rate of 9.8 to 1 last October. Hanwha Construction Division.

According to the "Nationwide Weekly Apartment Price Trend for the Third Week of December" released by the Korea Real Estate Board on December 20, Ulsan's weekly price growth rate was recorded at 0.20%. This is the highest rate this year and the top among the 17 metropolitan cities and provinces nationwide. Ulsan overtook Seoul, which had maintained the lead with 0.18%, to claim the top spot. The gap with Jeonnam, which had the second-highest rate among non-metropolitan areas at 0.10%, was also significant. Apartment prices in Ulsan have been rising for 22 consecutive weeks since the second week of July.

By district, Nam-gu recorded the highest increase at 0.29%. Dong-gu and Buk-gu followed at 0.24% each, while Ulju-gun and Jung-gu each saw increases of 0.09%. Nam-gu is a highly preferred area within Ulsan, known for its economic status, high population density, strong school districts, and comprehensive living infrastructure. Recently, a standard 84-square-meter unit at "Munsuro Grand Park Aileen's Garden" in Sinjeong-dong set a new record at 1.2 billion won, while in Ok-dong, a unit at "Grand Park Hanshin Hue Plus" was sold for 1.07 billion won last month. The upward trend in the Ok-dong and Sinjeong-dong areas is particularly notable, leading to improved buyer sentiment in neighboring regions.

The Nam-gu area, which leads the Ulsan apartment market, has a high proportion of older apartments. With limited options, both genuine end users and those seeking to upgrade are entering the market simultaneously. A local real estate industry official commented, "Nam-gu has limited new supply, and the scarcity of newly built apartments is increasing. The fact that it is a non-regulated area with fewer restrictions than the Seoul metropolitan area is making it attractive to both investors and end users."

Annual apartment supply in Ulsan is projected to be around 4,000 units per year from this year through 2028. This is more than 1,000 units short of the estimated appropriate demand of about 5,400 units annually. As supply remains limited, the warmth is spreading to the presale market as well. This year, "Taehwagang Epit" saw an average competition rate of 44.3 to 1, "Hanwha Forena Ulsan Mugeo" recorded 9.8 to 1, and "Ulsan Lake Park Aileen's Garden" achieved 10 to 1, all indicating strong demand.

Not only the supply shortage but also the recovery of the real economy is supporting the vitality of Ulsan's real estate market. The continued boom in shipbuilding orders has led to an influx of high-income workers, whose purchasing power is propping up the market. Analysts note that, unlike previous periods of rapid price increases, the current price rise is being driven by genuine end-user demand based on proximity to workplaces, rather than short-term speculative investment. Additionally, after the October 15 policy measures, stricter regulations in the Seoul metropolitan area have caused some demand to shift to regional markets, further boosting Ulsan's upward trend.

Park Won-gap, Chief Real Estate Expert at KB Kookmin Bank, stated, "Regional housing markets are ultimately most directly affected by industry and supply structure. In Ulsan, the real economy has recovered, centered on shipbuilding, and there is little supply pressure going forward, so it is a structure where price responses can appear first in the most desirable locations."