South Korean real estate shows regional price and vacancy disparities

The South Korean real estate market is exhibiting significant regional disparities. In Seoul, apartment sales prices have risen for 87 consecutive weeks, driven by demand in mid-to-low price ranges and specific districts, despite a cooling trend in high-end areas like Gangnam and Yongsan. Meanwhile, the average sales price for a standard 84㎡ apartment in Seoul has surpassed 2 billion won, a 23% increase from the previous year due to rising construction costs.

In contrast, regional markets show signs of imbalance. Gyeongsan has been re-designated as an unsold housing management area by the Korea Housing & Urban Guarantee Corporation (HUG) due to a buildup of new apartments. In Gyeonggi Province, while existing apartment prices are rising in southern hubs like Suwon and Yongin, the new sales market faces challenges with high unsold inventory and low subscription rates for certain developments. Auction trends also reflect this split, with high success rates in preferred Gyeonggi areas like Anyang and Gwangmyeong, while Seoul's auction success rate hit a 19-month low due to weakness in the luxury segment.

Additionally, public housing stability is under scrutiny. Data reveals that over 46,000 Korea Land and Housing Corporation (LH) rental units have remained vacant for more than six months, with high vacancy rates in specific types like Happy Housing and Deundeun Jeonse housing, particularly in the Gyeonggi region.