President Lee Jae Myung, Samsung Electronics Chairman Lee Jae-yong and SK Group Chairman Chey Tae-won clasp hands at Cheong Wa Dae on June 29 after announcing corporate investment plans at a national briefing on three major projects. [Presidential Press Corps] (Yonhap)
President Lee Jae Myung, Samsung Electronics Chairman Lee Jae-yong and SK Group Chairman Chey Tae-won clasp hands at Cheong Wa Dae on June 29 after announcing corporate investment plans at a national briefing on three major projects. [Presidential Press Corps] (Yonhap)

The pace of decline in Gwangju apartment prices has begun to ease slightly, with the local real estate market drawing cautious optimism from a sweeping semiconductor investment plan.

Samsung Electronics and SK hynix have moved to formalize plans to build semiconductor factories in the Gwangju and South Jeolla Province area, with combined investment estimated at 800 trillion won ($515 billion), sending ripples through the regional property market.

According to the Korea Real Estate Board, the apartment sale price index for Gwangju fell 0.05 percent in the fifth week of June.

While still in negative territory, the decline has narrowed marginally. Over the preceding five weeks, the index had fallen by 0.10, 0.11, 0.09, 0.09 and 0.06 percent, respectively.

The drop remains steep compared with broader trends: the national average sale price index rose 0.09 percent in the same week, while the regional average was flat at 0.00 percent.

Gwangju's apartment jeonse price index also fell 0.03 percent in the fifth week of June.

South Jeolla Province has shown a more positive trajectory. After dipping 0.01 percent in the fourth week of May, the provincial apartment sale price index turned positive in the first week of June and has since posted gains of 0.07, 0.07, 0.06 and 0.06 percent in successive weeks.

The South Jeolla apartment jeonse price index rose 0.05 percent in the fifth week of June.

"With sites such as the Gwangju military airport relocation site and Gwangju Cheomdan District 3 being mentioned as potential locations for Samsung Electronics and SK hynix semiconductor factories, apartment transactions are expected to pick up," a Gwangju real estate industry official said. "For the past two-plus years, a sluggish economy combined with an oversupply of apartments has kept prices on a downward trend."


sij@heraldcorp.com