[2·20 Real Estate Measures] Suwon "What Was Inevitable Has Come" vs Anyang · Uiwang "Why Us Too"

▲ Redevelopment zone of Gwonseon 6 District, Gwonseon-gu, Suwon-si, Gyeonggi Province, newly designated as a regulated area under the '19th Real Estate Measures'. (Photo by Lee Chunhee)

[Asia Economy Reporter Lee Chun-hee] "Everyone already expected it would happen someday" (Representative G of a real estate agency in Seryu-dong, Suwon-si, Gyeonggi Province)

"We anticipated it, but we didn't think it would come this quickly. I just thought it wouldn't happen yet." (Representative M of a real estate agency in Anyang-dong, Anyang-si, Gyeonggi Province)

On the morning of the 20th, ahead of the Moon Jae-in administration's announcement of the '19th real estate measure,' real estate agencies in three districts of Suwon-si, Gyeonggi Province, and the Manan-gu area of Uiwang and Anyang-si, where designation as adjusted areas is highly likely, showed mixed reactions. While the atmosphere in the three districts of Suwon was that "what was going to happen has come," those in Uiwang and Anyang-si expressed dissatisfaction, saying, "Prices have only just started to rise, this is too much."

The Ministry of Land, Infrastructure and Transport announced on the 20th that, under the banner of "strengthening the stable management policy of the housing market to block speculative demand," it will newly designate Yeongtong-gu, Gwonseon-gu, and Jangan-gu in Suwon-si, and Manan-gu in Uiwang and Anyang-si as adjusted areas starting from the 21st. From the 21st, the loan-to-value ratio (LTV) for mortgage loans in these five areas will be limited to a maximum of 50%. In particular, only 30% will be allowed for the portion exceeding 900 million KRW in market price. Also, one-homeowners will only be able to obtain mortgage loans if they dispose of their existing home within two years and move into a new home.

A representative of real estate agency D in Maetan-dong, Yeongtong-gu, Suwon-si said, "Since loans in Seoul have been blocked, many people have been moving here," adding, "Everyone expected it would be designated someday." Yeongtong-gu recorded the highest increase nationwide, rising 8.34% over eight weeks until the 10th, following the announcement of the December 16 real estate measures last year, based on the weekly apartment sales price index by the Korea Real Estate Board.

The representative added, "But even if it is designated as an adjusted area, I don't think prices will fall," and countered, "Did prices fall just because Gwanggyo New Town or Paldal-gu were designated as adjusted areas?" He said, "It's hard to see this as a level where loans are severely blocked, so I don't think it will have a big impact."

▲ Status of Real Estate Regulation Areas as of February 21 (Provided by the Ministry of Land, Infrastructure and Transport)

On the 19th, the first-priority subscription for 'Maegyo Station Prugio SK View' attracted about 160,000 applicants, showing intense enthusiasm. The reaction was similar in Seryu-dong, Gwonseon-gu, which is within the redevelopment influence zone of Maegyo Station. The representative G of this area said, "Since everyone expected it, even if designation is likely, there is no big disturbance," and mentioned that inquiries related to the designation as a regulated area are almost non-existent.

Gwonseon-gu also showed the second-highest nationwide increase in house prices, rising 7.68% over the recent eight weeks. However, representative B of the same area said, "Since Paldal-gu was the only adjusted area in downtown Suwon, the non-regulated Gwonseon 6 District, which is also a redevelopment area near Maegyo Station, had a spillover effect, so there might be a slight pause." Unlike other redevelopment zones in Paldal-gu where relocation, demolition, and even sales have been completed, Gwonseon 6 District has not yet undergone demolition, and the prices of four residential rights were all similar, but this situation is expected to change somewhat.

Among the four districts in Suwon city, Jangan-gu, which had the lowest increase rate of 3.44% over the recent eight weeks, was not much different. The representative of real estate agency C in Jeongja-dong said, "Since the increase was relatively small, there might be some resentment, but prices have risen a lot here too," adding, "The asking price for Hwaseo Station Park Prugio 85㎡ (exclusive area) has risen to 1.2 to 1.3 billion KRW." He acknowledged, "There is a big difference by neighborhood in Jangan-gu," but added, "Even places that didn't rise much have increased by about 100 million KRW."

A representative of P Real Estate in the same neighborhood said, "Everyone was prepared for the designation as an adjusted area," and asked, "There will definitely be complaints in places where prices didn't rise much, but since you can't designate by complex, isn't it inevitable to group by district?"

Kim Heung-jin, Director of Housing Policy at the Ministry of Land, Infrastructure and Transport, explained at a briefing on the 20th regarding the designation by district rather than 'pinpoint designation,' "If only specific neighborhoods were designated, there was concern that housing prices in nearby neighborhoods would move relatively free from regulation, so the designation was applied more broadly at the district level."

However, the reaction was completely different in Uiwang and Manan-gu, Anyang-si, excluding Suwon.

The representative E of Naeson-dong, Uiwang-si, said, "I never thought the regulation would be implemented this quickly," and complained, "Isn't it still too early?" He conveyed the atmosphere that there are many complaints, saying, "Prices haven't risen by several hundred million KRW like in Seoul; they have only just started to recover and rise, so this is too much." He added, "In Suwon, 85㎡ units cost about 1.2 billion KRW, but here, even though Seoul is closer, prices have only just started to reach 800 million KRW," and said, "Some residents might think 'we are being harmed.'"

A representative of M Real Estate in Anyang-dong, Manan-gu, Anyang-si, said, "We thought about it, but we want to believe it's not yet." He said, "Prices are only moving now because redevelopment is just starting, but regulations are already coming in. No matter how important preemptive regulation is, this seems too fast."

Ham Young-jin, Head of the Big Data Lab at Zigbang, said, "Since the newly designated adjusted areas have recently shown a short-term rapid rise, it is highly likely that the market will take a breather for a while," but added, "I don't think it will cool down sharply or prices will fall." Regarding the LTV reduction regulation, he predicted, "Reducing loans at the purchase stage has the effect of making market entry difficult, so the policy effect can be expected."

This content was produced with the assistance of AI translation services.