"Home Prices Hit Decade-High: Supply Shortage and Expanded Transportation Networks Drive Gains in This Area [Real Estate AtoZ]"

Rally Spreads Across Northern North Gyeongsang
Sales Price Index Hits All-Time High of 104.71
Andong Follows Mungyeong, Sangju, and Yeongju in Reaching Previous Peaks
Andong Apartment Listings Plunge 41.7% in One Year
Okdong Humansia 84㎡ Unit Jumps 110 Million KRW in a Year
Northern North Gyeongsang Sees Widespread Momentum Amid Supply Shortages and Transportation Boosts

Apartment prices in Andong, North Gyeongsang Province, have reached an all-time high for the first time in ten years. While neighboring cities such as Mungyeong, Sangju, and Yeongju have already surpassed their previous peaks and continue to rise, Andong-home to the North Gyeongsang Provincial Government-is also accelerating its price growth, driven by both a shortage of supply and the expansion of regional transportation networks.

An 84㎡ exclusive unit in Okdong Humansia Complex 8 in Andong increased by 110 million KRW in one year. Gigi Auction.

According to the Korea Real Estate Board's "Weekly Apartment Market Trends for the 4th Week of December" released on December 30, the apartment sales price index in Andong rose by 0.20% from the previous week to 104.71. This matches the all-time high previously recorded in the first week of December 2015, since the Board began compiling the index. With only the final weekly survey of the year remaining, it is virtually certain that Andong will end the year at a record high.

On the ground, a shortage of listings-especially for newly built apartments and those in prime locations-is intensifying, leading to a sharp increase in actual transaction prices. According to the real estate information platform Asil, as of December 29, there were 355 apartment listings in Andong, a steep decline of 41.7% compared to 608 listings a year ago. This is the highest decrease in listings among all cities and counties in North Gyeongsang Province. Son Dongjun, head of the Andong branch of the Korea Association of Realtors, commented, "The market for new apartments in downtown Andong is currently very robust. Due to the severe shortage of available units, almost every new listing is immediately sold, reflecting strong pent-up demand."

The surge in actual transaction prices at major complexes further demonstrates the market's intensity. An 84㎡ exclusive unit in Okdong Humansia Complex 8 soared from last year's record of 340 million KRW to 450 million KRW this year, an increase of 110 million KRW (32.4%). E-Pyunhansesang Andong Riverside jumped from 385 million KRW to 450 million KRW, while Andong Yongsang Poonglim Iwon River Park rose from 425.3 million KRW to 490 million KRW, with each seeing a price increase of more than 60 million KRW.

This strong performance in Andong is in line with the broader upward trend across the northern region of North Gyeongsang Province. Mungyeong, Sangju, and Yeongju are already setting new record highs each week. The cumulative price increase through the fourth week of December this year is highest in Mungyeong at 9.24%, followed by Sangju at 6.55%, Yeongju at 5.40%, and Andong at 5.20%. These figures are more than five times the national average increase of 0.94%. Notably, Mungyeong's growth rate even surpasses that of Seoul, which stands at 8.48%.

The primary reason cited for the rise in northern North Gyeongsang Province is a supply shortage. Mungyeong and Sangju have had no new apartment completions from 2023 through next year, with Yeongju facing a similar situation. Although Andong saw the supply of about 1,700 units over the past two years, the absence of new completions this year and next has further fueled buyers' sentiment.

In addition, the "KTX-driven transportation revolution" has acted as a catalyst. With the completion of the double-tracking of the Jungang Line between Andong and North Yeongcheon at the end of last year, travel times from Andong to Seoul have been reduced to around 1 hour and 30 minutes, and to Busan and Ulsan to under 2 hours. Around the same time, the extension of the Jungbu Inland Railway in Mungyeong enabled access to Pangyo in about 1 hour and 30 minutes, shedding its reputation as a "railway backwater."

Park Wongap, Chief Real Estate Expert at KB Kookmin Bank, stated, "Local markets move strictly according to localized supply and demand. As the northern region of North Gyeongsang Province becomes integrated into the wider transportation network, the value of its location is being reassessed. With virtually no new supply and the added benefit of improved transportation, the demand base has become stronger, and price support levels are being firmly established."