Half of apartments nationwide are over 20 years old

[Financial News] As apartments across the country age, the value of newly built apartments is rising. Their scarcity is especially coming into focus in older city centers, where new supply has been limited. According to Real Estate R114 on the 15th, of the 13,103,750 apartment units nationwide this year, 3,374,186 were more than 30 years past completion, accounting for 25.75% of the total. The number of apartments more than 20 years past completion was 6,934,416, exceeding half.
Daejeon had the highest share of apartments over 30 years old, at 36.86%, followed by Busan at 32.34%, Seoul at 29.95% and Gwangju at 29.88%.
As newly built apartments become scarce, the trend is also reflected in prices. According to age-based transaction price index statistics from the Korea Real Estate Board, prices for apartments up to five years old rose 4.88%, higher than the 3.59% for those over 10 and up to 15 years old, the 3.48% for those over 15 and up to 20 years old, and the 3.52% for those over 20 years old.
Industry observers say that in provincial areas, as older apartments make up a larger share of the market, replacement demand from people seeking to improve their living environment without leaving their established communities accounts for a growing proportion of demand.
This is why attention is turning to newly built apartments in older city centers for the remainder of this year. Kumho Engineering & Construction will market Hyeonggok Central Atera in Hyeonggok-dong, Gumi, North Gyeongsang Province, in November. The development is being built through the Hyeonggok 3 Jugong Apartment housing reconstruction project and will comprise 770 homes in seven buildings, with two basement levels and up to 29 floors above ground. It will be the first newly built apartment to be introduced in Hyeonggok-dong in about 10 years, and Kumho Engineering & Construction's new residential brand, Atera, will be used in Gumi for the first time.
POSCO E&C will market The Sharp Cheonan Lakwon in October in the Buseong 2 Urban Development District in Budae-dong, Seobuk-gu, Cheonan, South Chungcheong Province. The development will comprise 1,290 homes in 10 buildings, with two basement levels and up to 37 floors above ground. Exclusive floor areas will range from 84 to 118 square meters, and 1,032 of the homes will be offered for general sale.
Hyundai Engineering Co., Ltd. plans to market Hillstate Geoje Signature in Okpo-dong, Geoje, South Gyeongsang Province; LOTTE Engineering & Construction Co., Ltd. plans to market Gyeonggi Gwangju Station Lotte Castle Signature, Phase 2, in Ssangnyeong-dong, Gwangju, Gyeonggi Province; and Taeyoung Engineering & Construction plans to market Gumi Park One Desian, which is being built in Doryang-dong, Gumi, North Gyeongsang Province, through the Kkotdongsan Park private park special project.
In the Seoul metropolitan area, Hanwha Corporation E&C Division will market the large-scale Hanwha Forena Jije Station apartment complex in Segyo-dong, Pyeongtaek-si, Gyeonggi Province, in October. The complex will comprise 1,098 homes in 12 buildings, with two basement levels and up to 27 floors above ground, and exclusive floor areas of 84 and 116 square meters. Yangwoo Construction will market Uijeongbu Station Pelis Tower Yangwoo Naeanae in Uijeongbu-dong, Uijeongbu-si, Gyeonggi Province, in November. The development will comprise 1,506 units in total, including 1,252 apartments, 48 officetel units, 168 business-facility units and 38 neighborhood commercial units, with six basement levels and up to 49 floors above ground.

[email protected] Kwon Jun-ho Reporter