The center of gravity in the real estate market is shifting back to the original downtowns. As redevelopment and mixed-use projects in existing urban cores such as Yongsan, Seongsu and Noryangjin in Seoul increase, the supply of dwellings is growing. Solid living infrastructure and convenience are drawing demand.
This trend is also evident in the subscription market. In June, DE'FINE Artia, supplied through the redevelopment of Noryangjin District 2 in Dongjak District, recorded an average competition rate of 16.52 to 1 in first-priority subscriptions. The 59-square-meter exclusive A type posted the highest competition at 50.1 to 1. Earlier, Gongdeok Station Xi Rene in Dohwa-dong, Mapo District, closed with an average of 79.99 to 1 as a little over 6,000 people applied for 83 dwellings in the general supply.
The same is true in the provinces. Development projects are underway at the former Jeonbang and Ilshin Spinning sites in Im-dong, Buk District, in the Gwangju-Jeonnam integrated special city, and around Seomyeon and Citizens Park in Busan. Last year, Daegu Beomeo Phase 2 IPARK in Beomeo-dong, Suseong District, Daegu, recorded an average of 72.5 to 1 and a peak of 148.5 to 1, and completed contracts for all dwellings. The same year, Changwon Central IPARK in Seongsan District, Changwon, drew a little over 12,000 first-priority applicants, coming in at an average of 706.6 to 1. This is the highest competition rate in the South Gyeongsang area since the Korea Real Estate Board (REB) Subscription Home tally began in 2010.
In the second half, All New Champions City will enter the presales market in Im-dong, Buk District, in the Gwangju-Jeonnam integrated special city. It is a residential complex to be built on a site of about 298,000 square meters, with the first phase of sales set for Sept. WOOMI Construction Co. and Shinyoung C&D will build and supply 3,216 dwellings. It is a mixed-use development that will bring in The Hyundai Gwangju, a luxury hotel, office facilities and a cultural park alongside the residential complex.
Meanwhile, Daewoo Engineering & Construction will offer 1,438 dwellings at Dujung Station Prugio Grand Peak next month in the original downtown of Cheonan, South Chungcheong Province. Residents will be able to use both the Dujung and Buldang living zones. Also this month, GS Engineering & Construction will supply 651 units at Mokdong Yoonseul Xi on the former KT site in Mok-dong, Yangcheon District, Seoul.
In addition, a consortium of Doosan Engineering & Construction Co. and Ssangyong E&C plans to offer 2,008 dwellings next month through the redevelopment of Sosa-bon District 1-1 in Bucheon, Gyeonggi Province. In Incheon, a consortium of GS Engineering & Construction, Hyundai Engineering & Construction and Kolon Global will build a large complex of 2,706 dwellings in Sangok District 6, Bupyeong District. The general presale allocation is 1,289 dwellings.