Gimpo Designated as Regulated Area, Urgent Sales Surge 20-Fold in 5 Days
Buyer Demand Weakens, Short-Term Price Adjustment Inevitable
Paju Repeats Post 6·17 Gimpo Situation
Urgent Sales Decrease, Record High Prices and Transactions Continue
[Asia Economy Reporter Onyu Lim] In the Gimpo area of Gyeonggi Province, a growing number of apartment quick-sale listings priced below market value are accumulating. Analysts suggest that a short-term price adjustment is inevitable as buying demand weakens due to the government's designation of the area as a regulated zone. Meanwhile, in nearby non-regulated areas like Paju, apartment prices are soaring, spreading a balloon effect.
According to Apartment Real Transaction, a real estate big data company, Gimpo has seen the largest increase in quick-sale apartment listings nationwide over the past five days. On the 18th, there were only 4 quick-sale listings, but after the announcement on the 19th that the area would be designated as a regulated zone, the number surged to 69. As of the 23rd, the number of quick-sale listings in the area has risen to 80. This represents a 20-fold increase in just five days.
Earlier, following the June 17 measures, the government designated the Gimpo area, where prices had surged due to the balloon effect in non-regulated zones, as a regulated area starting from the 20th. Once designated, capital gains tax for multi-homeowners is increased, and long-term holding special deductions are excluded. Additionally, loan regulations are tightened, with loan-to-value (LTV) ratios set at 50% for properties under 900 million KRW and 30% for amounts exceeding 900 million KRW.
In the Gimpo area, not only quick-sale listings but overall apartment listings are also on the rise. Apartment listings, which had decreased to 3,299 on the 29th of last month, increased to 4,168 on the 18th and further to 4,331 on the 23rd. The five-day increase rate of 3.9% is the highest in Gyeonggi Province. A representative from A Real Estate Agency in Unyang-dong, Gimpo (hereafter referred to as the agency) said, "Since late October, rumors of regulations started circulating, causing listings to accumulate, and after the designation as a regulated area, buying inquiries stopped, leaving only sellers."
As quick-sale listings pile up, prices are clearly declining. On the 19th of this month, a 106㎡ (exclusive area) apartment in Punggyeong Village Hangang Hanla Vivaldi in Unyang-dong sold for 520 million KRW (2nd floor). This is 130 million KRW less than the record high of 650 million KRW reported last month. It is also 30 million KRW cheaper than the previous 2nd-floor transaction at 550 million KRW. Similarly, an 84㎡ apartment in Pungmu Central Prugio in Pungmu-dong, which was traded for 820 million KRW on the 9th, was sold for 750 million KRW on the 19th, a 70 million KRW decrease.
In contrast, across the Hangang River in Paju City, the situation is quite the opposite. Quick-sale listings are rapidly being absorbed, recreating the post-June 17 scenario seen in Gimpo. Quick-sale listings in Paju, which were 124 on the 19th, have decreased to about 99. Total listings, which were 1,766 on the 18th, dropped by 128 to 1,638 in five days.
As the market shifts to favor sellers, apartment prices in Paju are rising. A unit of 84㎡ in Dongpae-dong Chaekhyanggi Village 10 Complex Dongmoon Good Morning Hill sold for 340 million KRW (2nd floor) on the 19th, 27 million KRW higher than the same floor's sale price of 313 million KRW on the 20th of last month. A 59㎡ unit in Saekkot Maeul Tteuranchae in Geumchon-dong set a new record by selling for 225 million KRW (11th floor) on the 19th. A representative from B Real Estate in Geumchon-dong, Paju, said, "Due to the rental shortage, tenant buyers are steadily entering the market, and investors have joined due to the balloon effect. Inquiries about apartments around Geumchon-dong and Unjeong New Town are increasing."
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