Despite a sluggish housing market in regional areas, half of the first-round applications for private apartments outside metropolitan cities from January to September this year were concentrated in five cities: Cheongju, Jinju, Changwon, Jeonju, and Andong. The price increases in these cities also exceeded the average for non-capital regions. Analysts attribute this trend to a combination of demand from residents looking to move into new homes while maintaining familiar work and educational environments, alongside expectations for industrial investments.
According to an analysis by Aju Economy based on data from the Housing Application Home, 14 out of 60 initial recruitment announcements for private apartments outside metropolitan areas recorded a combined competition rate of 10.94 to 1. In contrast, the remaining 46 announcements had a rate of only 1.99 to 1, with 30 of these failing to attract enough first-round applications to meet the number of units available.
In these five cities, there were 47,03 units available for general supply, attracting 51,447 first-round applications. This accounted for 50.2% of the total applications for general supply, which represented 15.5% of the overall supply analyzed.
Competition rates by city were as follows: Jinju at 27.66 to 1, Changwon at 10.71 to 1, Jeonju at 8.67 to 1, Andong at 7.61 to 1, and Cheongju at 4.77 to 1. All of these rates surpassed the combined competition rate of 1.30 to 1 for Busan, Daegu, Daejeon, Ulsan, and Gwangju during the same period.
The scale of offerings was also significant. By October, including special supply, 10,118 units were available for recruitment in these five cities, exceeding half of the 19,064 units offered in the previously compared five major cities, including Busan and Daegu.
In the existing apartment market, relative strength was also observed. According to the Korea Real Estate Agency's monthly housing price trends, the cumulative price increase from January to September this year was 8.59% in Jinju, 5.93% in Jeonju, 3.53% in Andong, 2.62% in Changwon, and 2.07% in Cheongju, all surpassing the overall increase of 0.31% for non-capital regions.
In Jinju, demand was noted for moving into new homes within existing living areas. The Foreena Hill State Jinju recorded a first-round application rate of 21.15 to 1 in August. According to Hanwha Construction and Hyundai Engineering & Construction, all contracts for 398 units in the general sale were completed by the end of September.
A representative from a nearby real estate agency stated, "This is the first new apartment supply in the area in 20 years," adding that residents from surrounding neighborhoods such as Sangbong-dong and Sinan-dong have made the switch to new constructions. The area already has elementary, middle, and high schools, as well as access to traditional markets and large supermarkets, indicating a demand for improved living environments without leaving familiar surroundings.
Cheongju's Prugio Cieliche also attracted demand for new constructions within existing living areas, recording a first-round application rate of 6.47 to 1 in April. Following this, 270 units were offered without competition in June, and a representative from Daewoo Construction reported that all contracts for the total of 1,351 units were completed by August.
A sales representative noted, "Compared to Songjeol-dong, which is adjacent to SK Hynix, new constructions in Bunpyeong-dong or Mipyeong-dong are rare." Initially, some customers expressed dissatisfaction with the selling price, but the combination of demand for new constructions and expectations for additional investments in the semiconductor sector led to the completion of contracts.
In Changwon, workers from industrial complexes and public institutions sought new apartments. A local real estate agency reported that among the successful applicants for the Changwon JAI The Sky, which recorded a first-round competition rate of 6.75 to 1 in March, many were employees from the Changwon National Industrial Complex or the Gyeongnam Provincial Office.
Professor Kwon Dae-jung from Hansung University stated, "In regions with high unsold inventory, buyers tend to scrutinize new apartments more closely. Demand for housing applications has concentrated in areas with established locations, living infrastructure, job opportunities, and expectations for future development."
* This article has been translated by AI.
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