[Asia Economy Reporter Yuri Kim] The government announced the 2·20 measures. The core of the measures is strengthening loan and subscription regulations for adjusted target areas, newly designating Suwon, Anyang, and Uiwang, which have overheated in the short term, as adjusted target areas.
In particular, Suwon is a region attracting high attention from demanders as it has recently led price increases in the Gyeonggi area. This week, before the impact of the measures was reflected, it recorded a high increase of 0.61%. This is the highest rate of change since the end of 2007 (December 28, 1.9%). However, due to the government's active policies to block speculative demand and joint investigations by related agencies on the sources of funds, the rate of increase is likely to temporarily slow down.
According to Real Estate 114 on the 21st, the apartment sale prices in Seoul this week remained the same as the previous week at 0.03%. General apartments rose by 0.04%, a slowdown compared to the previous week (0.05%). On the other hand, reconstruction prices fell for three consecutive weeks, showing -0.04%. New towns rose by 0.03%, and Gyeonggi and Incheon showed a high increase of 0.15%, led by Suwon's price rise.
In Seoul, demand movement has calmed due to government regulations, with increases centered on non-Gangnam areas such as Dongdaemun (0.18%), Gangbuk (0.17%), Gwanak (0.15%), Guro (0.14%), Nowon (0.13%), and Seongbuk (0.13%). In Dongdaemun, Raemian Jang'an 2nd Complex in Jangan-dong and Hwikyung Centreville in Hwikyung-dong rose by 5 to 15 million KRW. In Gangbuk, Beondong Jugong 1st Complex and SK Bukhan Mountain City in Mia-dong increased by 2.5 to 5 million KRW. In Gwanak, Gwanak Prugio in Bongcheon-dong and Byeoksan Blooming rose by 5 to 10 million KRW. Conversely, the Gangnam 3 districts?Songpa (-0.08%), Gangnam (-0.03%), Seocho (-0.02%)?fell. In Songpa, Jamsil Els dropped by 15 to 25 million KRW. In Gangnam, Eonma, Hanbo Midomansion 2nd Complex, Seongyeong 1st and 2nd Complexes in Daechi-dong fell by 5 to 25 million KRW, and Jugong 6th and 7th Complexes in Gaepo-dong dropped by 25 to 50 million KRW. In Seocho, Acro River Park Banpo and Jugong 1st Complex in Banpo-dong decreased by 25 to 50 million KRW.
New towns rose in the order of Pangyo (0.07%), Pyeongchon (0.04%), Bundang (0.03%), Sanbon (0.03%), and Dongtan (0.03%). In Pangyo, small and medium-sized units in Baekhyeon Village 5th, 6th, and 7th Complexes in Baekhyeon-dong increased by 35 to 50 million KRW. In Pyeongchon, Mugunghwa Jinheung and Mokryeon Woosung 7th Complex in Hogye-dong and Gongjak Booyoung in Gwanyang-dong rose by 5 million KRW. In Bundang, Mujigae Daerim in Gumi-dong and Maehwa Geonyeong Villa in Yatap-dong increased by 10 million KRW. In Sanbon, Sanbon 2nd e-Pyeonhansesang in Sanbon-dong rose by 15 million KRW.
In Gyeonggi and Incheon, the sale prices in Suwon City surged significantly, leading to an overall high increase in the Gyeonggi area. By region, Suwon (0.61%), Uiwang (0.30%), Yongin (0.28%), Hanam (0.20%), Gwangmyeong (0.16%), Seongnam (0.15%), and Anyang (0.15%) rose in that order. In Suwon, with continued expectations due to the Shinbundang Line transportation benefits, Hwaseo Jugong 4th Complex in Hwaseo-dong, Suwon Gwonseon Xi e-Pyeonhansesang in Gwonseon-dong, and Homaesil Moa Miraedo Central Town in Geumgok-dong increased by 10 to 30 million KRW. In Uiwang, Poil Xi in Naeson-dong and Uiwang Naeson e-Pyeonhansesang rose by 10 million KRW. In Yongin, e-Pyeonhansesang Suji in Pungdeokcheon-dong, Sinbong Xi 2nd Complex in Sinbong-dong, and Pureunmaeul Prugio in Seongbok-dong increased by 5 to 30 million KRW.
The jeonse (long-term deposit lease) market saw relatively fewer inquiries compared to the previous week due to the impact of the novel coronavirus (COVID-19), but Seoul rose by 0.05% due to a shortage of listings. New towns and Gyeonggi-Incheon rose by 0.03% and 0.04%, respectively, maintaining a similar upward trend as the previous week.
In Seoul, the upward trend continued amid a shortage of jeonse listings. Seongbuk (0.14%), Gangbuk (0.13%), Gangnam (0.11%), Seongdong (0.11%), Geumcheon (0.09%), Nowon (0.08%), and Mapo (0.08%) rose in that order. In Seongbuk, Brownstone Dongseon in Dongsomun-dong 7-ga rose by 5 to 10 million KRW, and Raemian Gileum Center Peace in Gileum-dong increased by 10 million KRW. In Gangbuk, SK Bukhan Mountain City in Mia-dong rose by 5 million KRW. In Gangnam, Yeoksam e-Pyeonhansesang in Yeoksam-dong, Shin Hyundai in Apgujeong-dong, and Hanshin Hue Plus in Daechi-dong rose by 10 to 25 million KRW. In Seongdong, Byeoksan in Geumho-dong 1-ga and River Green Donga in Eungbong-dong increased by 5 million KRW.
New towns rose in the order of Bundang (0.07%), Pyeongchon (0.03%), Ilsan (0.02%), Dongtan (0.02%), and Gwanggyo (0.02%). In Bundang, Mujigae 3rd Complex Shinhan and Geonyeong in Gumi-dong and Shibeom Hanyang in Seohyeon-dong rose by 5 to 10 million KRW. In Ilsan, Moonchon 8th Complex Donga and Moonchon 13th Complex Daewoo in Juyeop-dong rose by 5 million KRW. In Dongtan, Shibeom Hanbit KCC Switzen, Shibeom Hanbit Kumho Eoullim, and Dongtan Station The Sharp Central City in Bansong-dong rose by 5 to 10 million KRW.
In Gyeonggi and Incheon, as sale prices surged, jeonse prices also rose accordingly. Yongin (0.11%), Suwon (0.10%), Hwaseong (0.08%), Hanam (0.07%), Gwangmyeong (0.04%), and Seongnam (0.04%) rose in that order. In Yongin, Jukjeon First Heim in Jukjeon-dong, Hyundai Hometown in Sanghyeon-dong, and Chodang Village Coaru in Jung-dong rose by 5 to 20 million KRW. In Suwon, Maetan Hyundai Hillstate in Maetan-dong, Yeongtong SK VIEW in Mangpo-dong, and Homaesil Moa Miraedo Central Town in Geumgok-dong rose by 5 to 10 million KRW. In Hwaseong, Jugong Green Ville 9th Complex in Byeongjeom-dong and Dajeong Village Shinhan S-ville 2nd Complex rose by 5 million KRW.
Yoon Ji-hae, senior researcher at Real Estate 114, said, "In Seoul, where regulations are concentrated, the Gangnam 3 districts showed a simultaneous weakness, and the decline is partially spreading from reconstruction to general apartments." She added, "The areas newly designated as adjusted target areas through the 2·20 measures, such as Suwon, Uiwang, and Anyang, are expected to see a somewhat subdued upward trend due to government regulations." However, since the adjusted target areas mainly face subscription-related regulations, existing apartment prices are not expected to shift to a short-term decline.
In the jeonse market, amid a shortage of listings across the Seoul metropolitan area, the upward trend continues mainly in areas with transportation benefits, proximity to workplaces, and good school districts. Senior researcher Yoon said, "With the spring moving season approaching, it is highly likely that the unstable trend will continue for some time."
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