Ulsan's apartment sales prices and rental prices have both increased, prompting the city to implement housing stability measures that include expanding public housing supply and supporting private housing projects.
With a recent decline in new housing supply, demand has concentrated in preferred residential areas such as Nam-gu, Jung-gu, and Buk-gu, leading to continued price increases. The city plans to address short-term supply gaps while alleviating housing market instability through an increase in move-in volumes starting in the second half of this year.
According to Ulsan City, the Korea Real Estate Agency's housing price trend survey indicated that Ulsan's apartment sales prices rose by 2.18% in June compared to January, the highest increase among regional cities outside of Seoul and the metropolitan area.
The rental market is also on the rise. During the same period, apartment jeonse prices increased by 2.82%, surpassing the national average increase of 2.05%. By region, Buk-gu saw a 3.66% increase, while Nam-gu experienced a 3.31% rise. Monthly rent prices also rose by 2.09%, increasing the housing cost burden for non-homeowners.
Ulsan City identified the main causes of the recent housing price increases as a decrease in new housing supply and concentrated demand in preferred areas. The analysis suggests that new housing projects have been stifled due to regulations on real estate project financing (PF) loans and a downturn in the construction market, leading to heightened demand in relatively desirable areas like Nam-gu, Jung-gu, and Buk-gu.
There is also a relative shortage of public rental housing supply. Ulsan City's identified public rental housing supply rate stands at 5.9%, below the national average.
In response, the city plans to prioritize the expansion of public housing supply for youth, newlyweds, and vulnerable populations. In collaboration with the Ulsan Urban Corporation and the Korea Land and Housing Corporation (LH), Ulsan aims to gradually supply a total of 6,671 housing units by 2030.
Some public housing supply projects are already being specified. According to LH's supply plan for this year, 324 public rental housing units, including 266 happy housing units and 58 permanent rental units, will be supplied in the Taehwa River A1 district, with occupancy scheduled for April 2027.
Measures are also being implemented to reduce delays in private housing project supply.
Private development projects facing financial difficulties will be supported in transitioning to public-supported private rental housing projects. Currently, five projects in Ulsan, totaling 2,308 units, are pursuing this transition.
The city is also accelerating redevelopment and reconstruction projects. Ulsan plans to revise its urban maintenance basic plan and related systems to reduce uncertainties in project execution and expand new housing supply within the city.
Monitoring of the housing market will be strengthened using actual transaction prices and rental reporting data. The city plans to continuously check price fluctuations and housing supply conditions in specific areas to proactively respond to market instability.
The key factor will be the timing of actual move-in volumes being supplied to the market.
Ulsan City expects to see 4,327 units move in during the second half of this year, followed by 3,910 units in 2027 and 7,601 units in 2028. The total number of planned move-in units over the next three years will reach 15,838.
In this regard, a local real estate expert stated, "If the new apartments scheduled for the second half of this year are supplied as planned, it could help alleviate the recent housing supply imbalance to some extent. However, since it will take time for large-scale move-in volumes to actually be supplied to the market, it is necessary to continuously monitor price trends in the sales and rental markets in the short term."
An official from Ulsan City remarked, "Although housing prices have risen somewhat due to a lack of new housing supply, the increase in move-in volumes starting in the second half of this year will significantly boost supply by 2028. We will implement this housing stability plan without delay to minimize the housing burden felt by citizens until large-scale supply begins."
* This article has been translated by AI.
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