The apartment market in Busan is currently facing significant challenges, influenced by various economic, demographic, and social factors. Despite being a major commercial and cultural hub, Busan is experiencing difficulties in its housing market due to economic downturns and demographic shifts.
In 2024, Busan plans to introduce 13 new apartment projects, totaling 11,637 units. However, the overall market sentiment remains cautious due to the broader economic conditions and previous years’ trends.
Monthly Data on Unsold Apartments:
| Month | Unsold Units | Change (%) |
|---|---|---|
| ‘23.05 | 2,892 | 10.21 |
| ‘23.06 | 3,107 | 7.43 |
| ‘23.07 | 2,258 | -27.33 |
| ‘23.08 | 2,327 | 3.06 |
| ‘23.09 | 2,235 | -3.95 |
| ‘23.10 | 2,277 | 1.88 |
| ‘23.11 | 2,534 | 11.29 |
| ‘23.12 | 2,997 | 18.27 |
| ‘24.01 | 3,372 | 12.51 |
| ‘24.02 | 3,149 | -6.61 |
| ‘24.03 | 3,222 | 2.32 |
| ‘24.04 | 4,566 | 41.71 |
| ‘24.05 | 5,496 | 20.37 |
Top Areas with Unsold Apartments in May 2024:
| Rank | Area | Unsold Units | Change (Units) | Change (%) |
|---|---|---|---|---|
| 1 | Nam-gu | 1,241 | -13 | -1.04% |
| 2 | Gijang-gun | 814 | 796 | 4422.22% |
| 3 | Sasang-gu | 549 | 65 | 13.43% |
| 4 | Busanjin-gu | 531 | -34 | -6.02% |
| 5 | Geumjeong-gu | 453 | 34 | 8.11% |
| 6 | Saha-gu | 428 | 0 | 0% |
| 7 | Dong-gu | 411 | 0 | 0% |
| 8 | Suyeong-gu | 355 | 0 | 0% |
| 9 | Dongnae-gu | 244 | 112 | 84.85% |
| 10 | Haeundae-gu | 218 | -19 | -8.02% |
| 11 | Buk-gu | 122 | 0 | 0% |
| 12 | Yeonje-gu | 63 | -10 | -13.7% |
| 13 | Seo-gu | 32 | 0 | 0% |
| 14 | Yeongdo-gu | 22 | 0 | 0% |
| 15 | Gangseo-gu | 13 | -1 | -7.14% |
Busan’s economy has been under strain, with many young people moving to Seoul in search of better job opportunities. This migration has led to a decrease in local housing demand. Additionally, high interest rates and rising construction costs have made it difficult for new projects to proceed, leading to an increase in unsold units.
As of early 2024, Busan has seen a significant number of unsold apartments, totaling over 3,000 units. These include prominent projects such as the Bohae Sun City River Park in Sasang-gu and Eco Delta City in Gangseo-gu. The rise in unsold units is attributed to high initial prices and economic uncertainty, deterring potential buyers.
Despite the challenges, there is still demand for well-located apartments with good amenities. However, the market is experiencing a shift towards more affordable options, as high-end apartments remain unsold. The preference is leaning towards smaller, more economical units that offer modern conveniences and accessibility.
Government efforts to stimulate the housing market include potential interest rate cuts and various incentives for buyers. However, these measures have not yet fully addressed the underlying issues of high prices and economic instability. Infrastructure developments, such as expanding transportation networks, continue to make certain areas more desirable, potentially stabilizing prices in those regions.
The future of Busan’s apartment market hinges on economic recovery and effective policy implementation. If interest rates are reduced and economic conditions improve, there could be a resurgence in demand. However, continued economic difficulties and population decline could prolong the current market challenges.
Experts suggest that the key to revitalizing Busan’s housing market lies in addressing affordability and ensuring that new projects meet the needs of local residents. Investment in infrastructure and sustainable development practices will also play a crucial role in attracting buyers and stabilizing the market.
While Busan’s apartment market faces significant hurdles, strategic policy interventions and economic recovery could pave the way for gradual improvement. Prospective buyers and investors should focus on well-located, affordable projects that offer good long-term value.
