As public institutions cluster, housing demand rises too... Apartments in “administrative towns” draw interest

[Financial News] Apartments near so-called “administrative towns,” where city halls and public institutions are concentrated, are becoming key residential areas in their regions. With transportation, commercial facilities and other daily-life infrastructure concentrated there, as well as housing demand from people working in related fields, some complexes are seeing continued record-high transactions.
According to the real estate industry on the 30th, an administrative town is an area where city halls, district offices and public institutions are clustered. It is characterized by both demand from administrative workers to live near their workplaces and established daily-life infrastructure. Notable examples include the area around Government Complex Gwacheon in Gwacheon, Gyeonggi Province; Gwanggyo New Town in Suwon; Buldang-dong in Cheonan, South Chungcheong Province; and Beomeo-dong in Suseong-gu, Daegu.
Some apartments near government offices are indeed changing hands at high prices. According to the Ministry of Land, Infrastructure and Transport’s Real Estate Transaction Price Disclosure System, an 84-square-meter unit at Gwanggyo Central View in Gwanggyo New Town, where the Gyeonggi Provincial Office and Gyeonggi Provincial Office of Education are located, sold for 1.9 billion won last August, setting a record high.
That was 550 million won more than the 1.35 billion won sale price in August last year. The price difference between the two transactions was 40.7%, exceeding the 11.3% rise in average apartment sale prices in Suwon over the same period.
A similar transaction was recorded in Cheonan, South Chungcheong Province. A 99-square-meter unit at Cheonan Buldang Gwell The Sharp in Buldang-dong, Seobuk-gu, near Cheonan City Hall and public health centers, sold for 1.147 billion won last August. That was 214 million won more than the 933 million won sale price in July last year.
This contrasts with the decline in apartment sale prices across Cheonan over the same period. Buldang-dong is an area where commercial and office facilities, educational facilities and other amenities are clustered around Cheonan City Hall.
In the housing subscription market, actual buyers have also flocked to newly launched apartment complexes near government offices.
According to the Korea Real Estate Board’s Cheongyak Home, The Sharp Geomdan Lake Park, launched in Geomdan New Town, Incheon, in June, received 9,189 applications for 1,307 units in the first-priority round, recording an average competition ratio of 7 to 1. Government facilities such as the Geomdan District Office, a public health center and a fire station are located near the complex or are planned for construction there.
Beomeo Station Park Dream The R, launched in Suseong-gu, Daegu, in April, received 2,131 applications for 21 units in the first-priority round, recording an average competition ratio of 101 to 1. The complex is near government and legal facilities, including Suseong District Office, a police station and Daegu District Court.
Gold Class Signature, launched in Deokjin-gu, Jeonju, North Jeolla Province, in the same month, also recorded an average competition ratio of 34.7 to 1, with 6,237 applications for 180 units. The area offers convenient access to public institutions such as Deokjin District Office, a tax office and an education office.
New apartment supply is set to continue in major regional cities where government offices are close to everyday amenities.
Gyeryong Construction will launch Elif Nonsan The Edition in Naedong 3 District, Nonsan, South Chungcheong Province, this November. The complex will comprise 499 units, each with an exclusive area of 84 square meters, across eight buildings ranging from three basement levels to 26 above-ground floors. It is the first newly launched apartment complex to be supplied in Nonsan’s Naedong in about 10 years, and Gyeryong Construction’s Elif brand will be introduced in Nonsan for the first time.
In Hyeonggok-dong, Gumi, North Gyeongsang Province, Kumho Engineering & Construction plans to launch Hyeonggok Central Atera in November. Of the 770 units in total, 135 units with an exclusive area of 59 square meters will be offered for general sale. In Choryang-dong, Dong District, Busan, Hoban Construction is preparing to launch Hoban Summit Choryang. The complex will comprise 432 units, with units measuring 59 to 84 square meters offered for general sale.

[email protected] Choi A-young Reporter