There are concerns about the serious unsold apartments in rural areas, yet in some cities, there is an extreme 'supply shortage,' leading to a desperate need for new apartments. In Gyeongbuk's Sangju and Yeongcheon, there has been no housing supply for five years.
According to an analysis of the housing supply across the nation by ChosunBiz, commissioned by HDC LABS (formerly Real Estate R114), Gwangju and Ulsan were identified as 'supply shortage' cities among metropolitan areas.
In Gwangju, the average housing supply over the past 10 years (2014–2023) was recorded at 9,712 units. However, the supply dropped sharply to 4,898 units in 2023, and last year it was only 8,862 units. Moreover, this year only 4,797 units are scheduled for occupancy, indicating a worsening supply shortage. However, it is expected that 10,908 units will be occupied in 2026.
In Ulsan, housing supply last year was 4,493 units, nearly a 40% decrease compared to the 10-year average (7,261 units). This year (4,981 units) and next year (4,355 units), the planned housing supply is expected to remain around 4,000 units, indicating a prolonged shortage of new homes. In Ulsan, the ongoing 'supply shortage' has also resulted in rising apartment sale prices. According to the Korea Real Estate Board, apartment sale prices in Ulsan have been increasing since February. The growth rates were 0.03% in February, 0.05% in March, and 0.02% in April.
Among rural cities excluding metropolitan areas, there are many places where the 'supply shortage' is even more severe. In particular, in Gyeongbuk's small to medium-sized cities, there has been no housing supply for several years, prompting concerns that the 'supply shortage' could become critical.
In Gyeongbuk's Yeongcheon and Sangju, there has been no housing supply from 2022 to 2026. The 10-year average housing supply in these cities is 339 units and 823 units, respectively. Both are small cities with populations in the 90,000 range, but the existing apartments are aging, and the reconstruction projects are not progressing smoothly, leading to significant demand for new apartments. Additionally, it was reported that there is no planned housing supply this year and next year in Gyeongbuk's Gimcheon and Andong.
Jeonju in Jeollabuk-do is also recognized as a prominent 'supply shortage' city. Over the past 10 years, an average of 4,659 units have been supplied annually, but last year only 993 units, this year 277 units, and next year 2,182 units are scheduled, indicating a drastically inadequate housing supply compared to previous years.
Jinju in Gyeongnam has a 10-year average housing supply of 3,026 units, but last year and this year, it is down to 1,928 units and 1,571 units, respectively. In 2026, only 166 units are expected to be occupied. Chungju in Chungcheongbuk-do is in a similar situation. Over the past 10 years, an average of 2,037 units have been supplied annually, but last year it was 1,849 units, this year 1,029 units, and next year it is projected to reduce to 90 units.
In Mokpo, a city with a population of 200,000, the housing supply last year was 'zero (0).' This year's supply is also 457 units, and next year it is projected to be 130 units, which is well below the 10-year average (1,405 units).
On the other hand, Daegu, known as the 'graveyard of unsold apartments' due to oversupply, has a high possibility of improving unsold units over time. In 2022, there were 20,728 units, 34,784 units in 2023, and 24,300 units last year, consistently exceeding the 10-year average housing supply (19,029 units). However, the planned housing supply for this year is only 14,639 units, and next year is 10,751 units.
Park Hapsu, an adjunct professor at Korea University’s Graduate School of Real Estate, noted that while the diagnosis indicates a high number of unsold units in rural areas, leading construction companies to shy away from rural sales, not all rural cities suffer from this. "There are places where the demand for new apartments is still high, so it’s worth keeping an eye on them," he said.