Major apartments in Ulsan are being pushed out of the ‘1 billion won club’ one after another due to the real estate slump. Due to the burden of an interest rate hike and the intensifying trading cliff, intermittently traded quick-selling items are pulling down the market price.
According to the actual transaction disclosure system of the Ministry of Land, Infrastructure and Transport on the 27th, the exclusive area of 101㎡ in Munsu-ro 2nd I-Park Complex 1, Nam-gu, Ulsan, was changed to 900 million won on the 11th. Compared to the highest price (1.42 billion won), it is close to 500 million won lower.
The complex was priced at 800 million won in November 2019, but as real estate prices soared in a year, it was sold for 1.4 billion won in November 2020, recording the highest price. However, after suffering from a severe transaction cliff, it fell by about 500 million won again in two years, and the bubble is greatly dissipated.
Since the transaction was conducted directly between the parties without going through a real estate agent, the transfer of names between specially related parties is suspected, but the transaction price of the representative large-cap stock in the region has plummeted, shocking the trading market.
Previously, the 85㎡ for Munsu-ro 2nd I-Park Complex 2 was also sold for 780 million won at the end of last month. It fell 400 million won from the highest price (1.19 billion won).
In the case of Riverside Central Heights (138㎡), it rose to 965 million won at the beginning of last year, and was ahead of entering the 1 billion won range. However, with a new deal signed at 720 million won in the middle of last month, it is difficult to enter the 1 billion won range.
Ulsan Daehyeon The Sap (84㎡) also recorded the highest price of 970 million won in May last year, but it fell to 620 million won this month. Grand Park Daemyeong Luchen (83㎡), which soared to 900 million won in 2020, is also recently traded at 600 million to 700 million won.
As the actual transaction price has decreased by hundreds of millions of won, the decline in local apartment prices is gradually accelerating according to statistical figures.
According to the ‘Weekly Apartment Trend’ announced by the Korea Real Estate Agency, Ulsan apartment prices fell 0.65% for a week. Among the 17 cities and provinces nationwide, this is the second largest drop after Incheon (-0.83%).
Ulsan apartment prices are increasing the decline from -0.46% in the first week to the second week (-0.59%) and the third week (-0.65%) this month, so the real estate market is expected to become more difficult towards the end of the year.
Looking at each district, Dong-gu showed the biggest drop at -0.76%, followed by Buk-gu (-0.74%), Jung-gu (-0.66%), Nam-gu (-0.4%), and Ulju-gun (-0.46%).
The Korea Real Estate Agency explained, “Dong-gu mainly fell in Jeonha and Hwajeong-dong, Buk-gu mainly in Sincheon and Cheongok-dong, and Jung-gu mainly in Yaksa and Yugok-dong, expanding the decline.”
The jeonse market continued to weaken. Ulsan apartment jeonse prices fell 0.63%, expanding the decline from the previous week (-0.56%). Jeonse also replaced the Jeonju drop, which was the largest since related statistics were written.
Reporter Seok Hyun [email protected]