Frightening Rise in Gyeonggi-do Housing Prices
84㎡ Unit Sold for 1.51 Billion Won in Ilsan New Town
[Asia Economy Reporter Onyu Lim] Gwacheon in Gyeonggi Province is on the verge of joining the "2 Billion Won Club" (based on 84㎡ exclusive area), and Suji in Yongin is close to joining the "1.5 Billion Won Club." In Ilsan New Town, which benefits from the GTX development, complexes priced over 1.5 billion won have already appeared. Despite the government's unprecedented supply measures, buying demand in the metropolitan area continues.
According to the Ministry of Land, Infrastructure and Transport's real transaction price disclosure system on the 20th, an 84㎡ unit in Gwacheon Prugio Summit in Jungang-dong, Gwacheon, changed hands for 1.94 billion won on the 9th of last month. This is the highest recorded price for the complex and the highest price in Gyeonggi Province for an 84㎡ unit. A representative from nearby A Real Estate Agency said, "The asking price for available units exceeds 2.1 billion won, so the transaction price is expected to soon surpass 2 billion won."
Gwacheon Prugio Summit, which was completed in March last year, is a complex rebuilt from Gwacheon Jugong 1st Complex, with a total of 1,571 households. A 59㎡ unit in this apartment recently sold for 1.6 billion won, surpassing the price of many apartments in Seoul.
Not only Gwacheon Prugio Summit but also the pre-sale rights for an 84㎡ unit in Gwacheon Ja-i in Byeolyang-dong, Gwacheon, which will be completed in November, were contracted last month for 1.80272 billion won, confirming the upward trend in housing prices.
Outside of Gwacheon, which is called "Quasi-Gangnam" and where high-priced contracts are frequent, the rise in housing prices in Gyeonggi Province is clearly evident.
According to the Ministry of Land, Infrastructure and Transport's real transaction price disclosure system, an 84㎡ unit in Seongbok Station Lotte Castle Gold Town in Seongbok-dong, Suji-gu, Yongin, was contracted for 1.495 billion won on the 1st of this month. This complex recorded a real transaction price of 1.172 billion won in January last year, and prices have consecutively surpassed 1.2 billion won in September, 1.3 billion won in October, and 1.4 billion won in December, with prices soaring close to 1.5 billion won this year. A representative from a local A Real Estate Agency said, "High-floor units in the Royal Building, where owners live directly, are listed at 1.55 billion won."
1.5 billion won is considered a resistance level for housing prices. In speculative overheated zones, housing loans are completely prohibited for homes priced above this level. Until now, cases of 84㎡ units exceeding 1.5 billion won in Gyeonggi have been limited to popular areas such as Gwacheon, Bundang, Wirye, and Gwanggyo New Town. In addition to Suji-gu in Yongin, complexes with 84㎡ units approaching 1.5 billion won have been appearing in Seongnam Sujeong, Anyang Dongan, and Seongbok in Yongin.
In the GTX-A line station area, Goyang Janghang-dong Kintex One City Block 1's 84㎡ unit has already surpassed 1.5 billion won. It changed hands for 1.51 billion won on the 24th of last month.
Experts expect that as housing prices in Gyeonggi continue to rise due to alignment with Seoul prices and demand shifting from rental to purchase amid Seoul's rental shortage, the number of apartments exceeding the loan prohibition threshold will increase. Especially, areas expected to improve accessibility to Seoul with the opening of GTX are anticipated to see steep price increases. Kim Hak-ryeol, head of Smart Tube Real Estate Research Institute, said, "With the implementation of the new lease protection law, the supply of rental units in Seoul has sharply decreased, turning the real estate market into chaos," adding, "As regulations nationwide have been standardized, the upward trend in housing prices in speculative overheated zones in the metropolitan area will continue."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
