Supply Cliff and Development Benefits Align in 'Busan' Real Estate... 'Signal for Market Recovery'

[Financial News] Expectations for a recovery in the real estate market are rising in Busan. This is due to the development of the Beomcheon Railway Vehicle Maintenance Site, the government's push to relocate the Ministry of Oceans and Fisheries to Busan, and various favorable developments such as the North Port redevelopment project.
According to the industry on the 18th, changes are being detected in the real estate market as Busan strengthens its regional competitiveness with various development benefits and the relocation of the Ministry of Oceans and Fisheries. It is analyzed that the real estate market is gradually recovering as real estate demand is expected to increase significantly due to job creation from development and the relocation of the Ministry of Oceans and Fisheries. In particular, as the capital region faces strong regulations such as the 6.27 regulation limiting housing mortgage loans to 600 million won, benefits from this are also expected.
According to data from the Korea Real Estate Agency, apartment sale prices in Suyeong-gu, Busan, turned flat on June 23 and then rose by 0.04% and 0.09% on June 30 and July 7, respectively. Haeundae-gu also rose by 0.02% on June 30 and 0.03% on July 7, continuing the upward trend. Busan's monthly jeonse price index has also been rising for 15 consecutive months since turning upward in April last year.
In particular, while real estate demand is increasing, apartment occupancy is decreasing, which is expected to increase the scarcity of new apartments in the future. According to Real Estate R114 data, the number of apartment occupancies in Busan, which was 27,077 households in 2022, decreased to 25,351 households in 2023, 15,151 households in 2024, and 10,344 households this year. It is expected that the annual apartment occupancy will remain at about 10,000 households until 2028, increasing the number of buyers looking for new constructions.
In addition, as the upward trend in Busan's sale prices accelerates, it is evaluated that now is the right time to pay attention to Busan real estate before prices rise further. In fact, the average sale price per 3.3㎡ of apartments supplied in Busan rose by 57.3% from 14.98 million won in 2021 to 23.57 million won last year. When converted to the standard area of 84㎡, known as Gukpyeong, it increased by about 300 million won from about 500 million won to 800 million won.
As the Busan real estate market shows signs of rebounding, interest is also focused on new supply. A representative example is 'Ssangyong The Platinum Seomyeon' supplied in Busanjin-gu, which consists of a maximum of 48 floors, 432 apartment units, and 36 officetel units, all in the highly preferred 84㎡ exclusive area. The officetel application is scheduled for the 18th.
It is evaluated that Ssangyong The Platinum Seomyeon has a competitive sale price. The sale price for the 84㎡ exclusive area is set at the high 500 million won to mid-to-high 600 million won range, which is more than 200 million won cheaper than the current average sale price in Busan. This is similar to the average sale price per 3.3㎡ in Busan in 2022, which was 19.86 million won, and is evaluated as effectively turning back the market clock by three years.
Kwon Il, head of research at Real Estate Info, said, "As large-scale projects such as the North Port redevelopment and Beomcheon Railway Vehicle Maintenance Site development, which were being carried out in Busan, align with the new government's relocation of the Ministry of Oceans and Fisheries, the Busan real estate market is showing signs of recovery," adding, "As supply is expected to decrease significantly in the future, the increasing demand due to development is likely to focus on new constructions."

ming@fnnews.com Jeon Min-kyung Reporter