Provincial Real Estate Market Shows Signs of Stirring as First-Half Transactions Hit Five-Year High

[Financial News] Provincial apartment sales transactions reached a five-year high in the first half of this year. With about 29,000 new housing units also scheduled for presale in the fourth quarter, attention is turning to the provincial apartment market in the second half of the year.
According to Real Estate R114 on the 15th, provincial apartment sales transactions totaled 148,852 in the first half of this year. That was 12,893 more than the 135,959 recorded in the first half of last year, representing a 9.5% increase.
Compared with the 130,453 transactions recorded in the first half of 2024, the figure rose by 18,399, or 14.1%. There were 129,216 transactions in the first half of 2022 and 116,893 in the first half of 2023. This year's first-half transaction volume was the highest among the first-half figures recorded over the past five years.
By region, South Gyeongsang Province recorded the most transactions in the second quarter of this year, with 9,435, followed by Busan with 9,260. The figures for other regions were 6,658 in Daegu, 6,640 in South Chungcheong Province, 5,810 in Gyeongsangbuk-do, and 5,364 in North Chungcheong Province. South Jeolla Province recorded 4,326 transactions, Daejeon 4,257, and Gangwon State 4,208.
Signs of recovery are emerging in the existing housing market, while new apartment supplies will continue in the fourth quarter. Attention is therefore focused on whether the increase in first-half sales transactions will translate into demand for new apartment presales in the fourth quarter.
Real Estate R114 said that a total of 29,329 provincial apartment units are scheduled for presale in the fourth quarter. By month, 12,654 units are scheduled for October, 10,904 for November, and 5,771 for December.
By region, Daegu has the largest planned supply at 4,935 units, followed by Daejeon with 4,463, Busan with 3,745, South Chungcheong Province with 2,916, South Gyeongsang Province with 2,529, and North Chungcheong Province with 2,015.
Industry observers say that when assessing provincial housing markets, it is important to consider not only overall transaction volumes and presale supply, but also each region's industrial and employment base and living infrastructure.
An industry official said, "Because housing demand trends differ according to local economic conditions, provincial housing markets should be assessed by considering not only transaction volumes and presale supply, but also the industrial and employment base of each region. In particular, regional hub cities with strong industrial foundations and quality jobs tend to see sustained demand for upward residential mobility, supported by stable incomes."

[email protected] Choi A-young Reporter