Apartment supply outside the greater Seoul area has fallen to its lowest level in 14 years, drawing attention to homes being built through redevelopment and reconstruction projects in established city centers with existing amenities. As new apartments grow scarce in older downtown districts that have gone years without new construction, 14 complexes outside the capital region are set to offer 8,832 units to general buyers by the end of this year.
Apartment supply outside the greater Seoul area totaled 88,942 units this year, including units scheduled for presale by year-end, according to data from Budongsan114 released on the 22nd. That is the lowest level since 65,412 units in 2012, 14 years ago, and down about 29.6% from the 126,391 units supplied last year. It also falls far short of the 150,000-unit annual average over the past decade.
The decline is pronounced across regions. Supply in Gangwon State dropped 57% from its 2019 peak of 17,624 units, while Ulsan fell 59.9%, Busan 54.5% and North Chungcheong Province 51.8%.
In some areas where supply has been limited for years, competition for new units has intensified. Forena Hillstate Jinju, which went on presale in August in Ihyeon-dong, Jinju, South Gyeongsang Province, drew 3,849 applicants for 182 units in the first round of general applications, a ratio of 21.15 to 1, according to the Korea Real Estate Board's application portal. The complex drew interest as the first new apartment supplied in Ihyeon-dong in 21 years.
Against that backdrop, new apartments being supplied through redevelopment and reconstruction projects in major cities outside the capital region through the end of this year are attracting owner-occupier buyers. One advantage of such complexes is that residents can use the already established infrastructure of the city center.
A total of 14 complexes with 14,177 units are scheduled for presale this year through redevelopment and reconstruction projects outside the capital region, according to real estate research firm Real Today. Of those, 8,832 units are slated for general sale. North Gyeongsang Province has the largest planned general-sale volume at 2,397 units, followed by Daejeon with 2,334, Gwangju with 1,387, Busan with 1,127, Daegu with 1,049 and Jeonbuk State with 538.
Among the largest of these projects is Trisen Xi The Sharp Hillstate, a redevelopment of the Doma-Byeondong District 3 in Seo-gu, Daejeon. Built by GS E&C, Hyundai Engineering & Construction and POSCO E&C, the complex will have 3,404 units in total, of which 2,334 are set for general sale. I'Park Mudeungsan Sky Forest, supplied through the redevelopment of Hak-dong District 4 in Dong-gu, Gwangju, will offer 1,387 of its 2,299 units to general buyers. The site is within walking distance of Namgwangju Station on Gwangju Subway Line 1.
In Busan, Hoban Summit Choryang, a redevelopment of Choryang District 3 in Dong-gu by Hoban Construction, is scheduled for presale in November. Of its 432 units, 252 will be offered for general sale. The site has drawn attention for its proximity to Choryang Station on Busan Subway Line 1 and Busan Station, as well as expected benefits from the Bukhang port redevelopment project. In Gumi, North Gyeongsang Province, Kumho Engineering & Construction plans to launch Hyeonggok Central Atera, a reconstruction of the Hyeonggok District 3 Jugong apartment complex. Of its 770 units, 135 will be offered for general sale. It is the first new apartment complex supplied in Hyeonggok-dong in about 10 years.
"The housing market outside the capital region is seeing a widening supply-demand divide by area, so applications will not flood in simply because a complex is new," an industry official said. "Still, in older downtown districts where supply has been scarce for years, existing amenities and demand to replace aging homes are converging, so interest may continue to center on complexes with competitive locations."