Most of the Seoul Metropolitan Area Designated as Regulated Zones... Which Complexes Offer Affordable Pre-sale Prices for Homeownership?

-Gyeonggi Gimpo Avoids 6.17 Measures but Apartment Prices Surge Leading to Designation as Adjustment Area
-‘Yeongjong International City Dongwon Royal Duke’ Attracts Attention with 300 Million KRW Price... Affordable Price and New City Infrastructure Highlighted

On the 19th, the Ministry of Land, Infrastructure and Transport designated Gimpo City in Gyeonggi Province (excluding Tongjin-eup, Wolgot-myeon, Haseong-myeon, and Daegot-myeon), Busan’s Haeundae, Suyeong, Dongnae, Yeonje, and Nam districts, and Daegu’s Suseong District as regulated areas subject to loan, tax, and subscription restrictions after deliberation by the Housing Policy Deliberation Committee amid ongoing price instability.

Daegu’s Suseong District, previously classified as an overheated speculation zone, has now been designated as a regulated area, adding tax regulations that were not previously applied. Busan was freed from regulations after being removed from the regulated areas in November last year, but as the surge in sales and jeonse prices that began in the Seoul metropolitan area spread nationwide, prices also soared there.

In the case of Gimpo City, it remained a non-regulated area when most parts of the metropolitan area were designated as regulated areas under the June 17 real estate measures this year. However, due to recent transportation benefits from GTX-D and an increase in investment from outsiders, housing prices have surged, intensifying overheating.

The Ministry of Land, Infrastructure and Transport stated that while housing prices in the metropolitan area have continued to slow in growth after the designation of regulated areas under the June 17 measures, the rise has expanded since mid-October due to increases in some non-regulated areas and regions with transportation benefits.

According to the weekly apartment price trend by the Korea Real Estate Board for the third week of November (as of the 16th), apartment prices in Gimpo City rose by a staggering 2.73%, recording the highest increase nationwide. In particular, prices have surged by 1.94%, 1.91%, and 2.73% consecutively over the past three weeks this month, totaling a 6.58% spike.

In fact, a premium of over 100 million KRW has formed in Gimpo City. The ‘Hangang Metro Xi 3rd Complex’ (moved in July 2020), sold in September 2017 in Block A-2 of the Geolpo 3 District urban development project in Geolpo-dong, Gimpo City, Gyeonggi Province, had a sale price of 421.3 million KRW for an exclusive area of 84.93㎡. However, in September this year, the pre-sale rights were traded at 729 million KRW, with a premium exceeding 300 million KRW.

With the government’s recent real estate measures designating Gimpo City as a regulated area, only Paju, Yeoncheon, Dongducheon, Pocheon, Yeoju, and Icheon cities in Gyeonggi Province, the entire areas of Gapyeong and Yangpyeong counties, parts of Yongin, Namyangju, Anseong, and Gwangju cities, and Ongjin and Ganghwa counties in Incheon remain as non-regulated areas among the 47 cities, counties, and districts in the metropolitan area.

Areas designated as regulated zones are subject to three major regulations: loan restrictions, tax regulations, and subscription restrictions. The loan-to-value ratio (LTV) is limited to 50% for properties priced under 900 million KRW and 30% for the portion exceeding 900 million KRW. When acquiring a new home, one must reside for at least two years to receive the one-household one-home tax exemption benefit. Subscription conditions are also tightened, requiring at least two years of subscription savings account membership for first-priority eligibility, with expanded restrictions on resale of pre-sale rights and application of the point system.

As most of the metropolitan area is designated as regulated zones with loan, tax, and subscription regulations applied and apartment prices soaring, there is a complex within the metropolitan area where it is possible to purchase a home at an affordable price, attracting attention.

Dongwon Development is conducting a first-come, first-served sale allowing unit selection only for currently uncontracted households at ‘Yeongjong International City Dongwon Royal Duke’ in Block A31 of Yeongjong International City, Incheon, with prices in the 300 million KRW range.

This complex consists of six buildings ranging from two basement floors to 20 floors above ground, with exclusive areas of 79 to 84㎡ and a total of 412 households, featuring excellent specialized design and living infrastructure.

The complex is mainly oriented southward and arranged in a 4Bay structure, providing excellent lighting and ventilation. Inside, storage spaces and pantries maximize space utilization, polished tiles are applied to kitchen walls for aesthetic appeal, and smart living is enabled through KT Giga IoT Home services and eco-friendly LED lighting. Additionally, smart wall pads controlling gas alarms, lighting, air conditioning, and curtains, energy-saving air purification systems that expel harmful air and provide fresh air, AI heating control systems that maintain indoor temperature and maximize energy savings, and heat exchange ventilation systems for fine dust are implemented. Furthermore, unmanned parcel delivery systems, electric vehicle charging stations, and visitor vehicle reservation systems will also be established.

The complex boasts excellent educational and transportation environments. Parents can safely send their children to Yeongjong Elementary School via a park path connected to the complex. Prestigious schools such as Haneul High School, Incheon Science High School, Incheon International High School, and Yeongjong Logistics High School are located within the living area. Nearby are Songsan and the large-scale marine park Seaside Park, offering a pleasant environment, and the complex is adjacent to the central commercial district, providing convenient access to living amenities. Directly in front of the complex are Yeongjong-daero, Yeongjong IC, Sinbul IC, Geumsan IC, Incheon Bridge, Yeongjong Bridge, and the Airport Railroad, facilitating easy travel to Seoul, the metropolitan area, and surrounding regions.

Meanwhile, ‘Yeongjong International City Dongwon Royal Duke’ offers free balcony expansion upon contract and interest-free interim payment loan benefits. The model house is located at 3086-8 Unseo-dong, Jung-gu, Incheon, and is open for viewing.