"For the time being, new apartments will be scarce"... Busan, Sejong, and Gwangju are more difficult

[Financial News] This year's new apartment occupancy volume is expected to record the lowest level in the past 10 years. This is due to the impact of reduced supply caused by the recession that began in 2022. In particular, Busan, Sejong, and Gwangju are expected to fall short of half compared to 2022.
On the 14th, according to Real Estate R114 data, this year's nationwide apartment occupancy volume is scheduled to be 287,432 units. This is a decrease of 48,767 units, or about 15%, compared to the 336,199 units that moved in during 2022. As the real estate market slowed down from 2022, the reduction in new apartment supply has led to this year's occupancy drought.
By region, occupancy volume decreases in a total of 7 areas. Gwangju is expected to decrease by about 65% from 13,716 units in 2022 to 4,820 units this year, and Busan will decrease by 58% from 27,077 units to 11,418 units during the same period. Sejong is also expected to decrease by 51% from 3,793 units to 1,840 units. These three regions are the only ones with a decrease rate of over 50%.
In terms of the number of households, Gyeonggi (-39,813 units) and Incheon (-20,477 units) are expected to decrease the most, and Busan ranks among the top three in terms of household decrease with a reduction of 15,659 units.
Jeju recorded the highest increase rate nationwide, increasing more than tenfold from 132 units to 1,493 units, and Gyeongnam and Gyeongbuk are also expected to increase more than twice. In terms of the number of households, Seoul's increase of 18,960 units is the most prominent.
Industry experts predict that the nationwide occupancy drought will continue for more than 2-3 years. Considering the ongoing reduction in supply volume from 2022 to this year, occupancy volume is inevitably expected to decrease significantly for several years. In particular, the reduction in volume in Gyeonggi, where the most population resides in the metropolitan area, and Busan, the most populous area in the provinces, is expected to have a significant impact on the market.
One expert said, "Although the impact of the real estate recession is still ongoing, apartment sales have been rapidly increasing in almost all regions nationwide since 2022, indicating that the housing demand is sufficiently active," adding, "Despite sufficient demand, new apartment occupancy is expected to decrease record-breakingly from this year for several years, which may lead to a strong shortage of new apartments for the time being."
The scarcity of new apartments is expected to increase rapidly, prompting buyers to act quickly.
Lotte Construction is selling the 'Gaya Station Lotte Castle Skyel' right in front of Gaya Station on Busan Metro Line 2 this month. The complex consists of 725 apartment units ranging from 59 to 84㎡ and 80 officetel units ranging from 52 to 69㎡, totaling 805 units. It offers convenient access to major areas such as Seomyeon, which forms a nationwide commercial district with Lotte Department Store, Lotte Hotel, Lotte Duty Free, Jeonpo Cafe Street, and Medical Street, as well as Munhyeon Financial District, Gwangalli, and Haeundae. Additionally, various educational institutions from elementary to university are nearby, and Busan Global Village, which houses an English library and a math culture center, is within walking distance, attracting interest from parents.
Lotte Construction is also selling 'Daejeon Lotte Castle The First' located in Dong-gu, Gajodong, Daejeon. The complex consists of 10 buildings, ranging from 59 to 120㎡, with a total of 952 units, from basement level 2 to ground level 33. The complex will introduce a sky lounge and sky guest house for the first time in Daejeon, and all units will have storage rooms, providing the highest level of community facilities in the region.
In Pungmu-dong, Gimpo-si, Gyeonggi-do, Hyosung Heavy Industries is selling 'Harrington Place Pungmu'. 'Harrington Place Pungmu' consists of 18 buildings, ranging from 59 to 84㎡, with a total of 1,769 units, from basement level 3 to ground level 29. Of these, 1,573 units are general sales, and special supply and first-priority subscription applications will be accepted on the day and on the 15th, respectively.

ming@fnnews.com Jeon Min-kyung Reporter