Incheon Geomdan Also Opens Era of 20 Million KRW per 3.3㎡

[Asia Economy Reporter Donghyun Choi] The western region, which had remained on the outskirts of the metropolitan housing market, is becoming the center of the housing market as real demand buyers continue to visit. In particular, the actual transaction prices of pre-sale rights and newly built apartments in Incheon’s Geomdan New Town and Gimpo areas have exceeded 20 million KRW per 3.3㎡.

According to the Ministry of Land, Infrastructure and Transport’s actual transaction price disclosure system on the 5th, Hoban Summit Phase 1, 84㎡ (exclusive area) located in Wondang-dong, Geomdan New Town, Incheon, was traded for 650 million KRW (6th floor) last month. This translates to 19.4 million KRW per 3.3㎡. Nearby, Kumho Eoullim Central 84㎡ was traded for 622.4 million KRW (18th floor) in September, sold at 18.46 million KRW per 3.3㎡.

These complexes are scheduled for move-in in 2021, and as the resale restrictions were lifted this year, transactions have been active every month. Currently, the asking price for 84㎡ units has exceeded 800 million KRW, and pre-sale rights that can be traded immediately are priced in the mid-700 million KRW range. This corresponds to an asking price of around 24 million KRW per 3.3㎡. While apartments in Incheon’s Free Economic Zones such as Songdo International City and Cheongna International City have increasingly surpassed 20 million KRW per 3.3㎡, Geomdan New Town is also steadily rising in price as the move-in date approaches.

Geomdan New Town, which once struggled with unsold units, saw a complete turnaround after news of the extension of Incheon Subway Line 1 was announced last summer. Most of the backlog of unsold units has been cleared, and this year, complexes where resale of pre-sale rights is allowed have appeared one after another, leading to active trading of pre-sale rights. Despite most areas in Seoul and the metropolitan area being regulated zones, rising house prices have led buyers to turn their attention to the relatively affordable Geomdan New Town. Additionally, the adjacent city of Gimpo, benefiting from its status as a non-regulated area, has shown strong house prices, which also influences the pre-sale rights market in Geomdan New Town.

The interest in Seo-gu, Incheon, which has continued since early this year, also affected the subscription results for Geomam Station Royal Park City Prugio Phases 1 and 2, which were sold in the Baekseok-dong Handosi Development Zone in June. This apartment recorded a first-priority subscription count of 84,730, surpassing Songdo International City to set a record high in Incheon’s history.

The housing market in Gimpo is also hot. In particular, Gimpo is one of the few non-regulated areas in the metropolitan area, and newly built apartments or pre-sale rights less than three years old are showing strong demand.

The 84㎡ unit of Pungmu Central Prugio in Pungmu-dong, Gimpo, which moved in in 2018, was traded between 700 million and 715 million KRW in September, and set a new high of 759 million KRW in October. The 84㎡ unit of Pungmu Prugio, which moved in in 2016 and is now in its fourth year, also traded for over 700 million KRW.

Pre-sale rights are showing even stronger demand. The 84㎡ units in Hangang Metro Xi Phases 1 to 3, located in Geolpo-dong, were traded between 690 million and 760 million KRW, and at the end of last month, set a new high at 803.43 million KRW. This is the first time that 84㎡ apartment prices in Gimpo have exceeded 800 million KRW, surpassing 20 million KRW per 3.3㎡ by a wide margin.

Kwon Il, head of the research team at Real Estate Info, said, "As preference for a single, well-located new apartment increases, prices of newly built apartments in metropolitan areas such as Seo-gu, Incheon, and Gimpo are leveling up, and the value of pre-sale rights is also rising." He added, "Areas adjacent to Seoul are showing strong housing prices as real demand buyers fleeing Seoul’s rental shortage are also joining the market."