Sokcho 25-Pyeong Also 800 Million Won... How Far Does the 'Non-Regulation Premium' Go?

Sokcho The Ocean Xi 84㎡ Sold for 800 Million KRW, Record High
Gangwon Province Apartment Prices Rise for 11 Consecutive Months
One of the Only Non-Regulated Areas Alongside Jeju Island

Sokcho The Ocean Xi Bird's-eye View

As the government continues to expand real estate regulation zones on all fronts, apartments in the Gangwon-do area are enjoying a significant 'non-regulation premium.'

According to the Ministry of Land, Infrastructure and Transport's actual transaction price disclosure system on the 26th, an 84㎡ (exclusive area) Type A unit in 'Sokcho The Ocean Xi' located in Dongmyeong-dong, Sokcho-si, Gangwon-do, was sold on the 10th of this month for a record high price of 805.5 million KRW. This transaction price for a high-floor unit on the 35th floor is 224.82 million KRW higher than the same size unit sold last month for 584.73 million KRW.

With prices soaring, Sokcho The Ocean Xi is establishing itself as the most expensive complex not only in Sokcho but throughout the Gangwon-do area. Until the beginning of the year, the highest-priced apartment in Gangwon-do was the 84㎡ unit in 'Sokcho Yangwoo Naeane Oceansky' in Joyang-dong, Sokcho-si, which traded at 651 million KRW. However, on the 16th of last month, the same size unit in Sokcho The Ocean was sold for 695.53 million KRW, taking the top spot for the highest-priced apartment.

According to the Korea Real Estate Board, apartment sale prices in Gangwon-do rose by 0.74% in January compared to the previous month. This marks an 11-month consecutive increase starting from March last year (0.02%). The average apartment sale price increased by about 3%, from 143.8 million KRW in August last year to 148.19 million KRW in January this year. The enthusiasm is also confirmed by the increase in transaction volume. Based on the Ministry of Land's reporting date, the number of housing sales transactions in Gangwon region in January was 3,068, an increase of 750 transactions (32.4%) compared to the same month last year (2,318 transactions).

As housing prices rise, subscription competition rates are also soaring. The apartment subscription competition rate in Gangwon in January was 10.8 to 1, marking the highest level for January since internet applications became mandatory in 2007. Sokcho was removed from the unsold management area in December last year, and Gangneung was removed in January this year.

This rising housing price trend is attributed to relative freedom from various real estate regulations such as loan limits, subscription qualifications, and resale restrictions on pre-sale rights. Among the 17 cities and provinces nationwide, except for Jeju Island, Gangwon-do is the only area without regulation zones such as adjusted target areas or speculative overheating districts.

Developers are also planning successive pre-sales. Doosan Construction plans to pre-sell 'Samcheok Central Doosan We’ve' in Jeongsang-dong 351, Samcheok-si, in March. It is an apartment complex with a total of 736 units ranging from 74 to 114㎡. In the Hope District of Hongcheon-eup, Hongcheon-gun, Kumho Industrial will offer 580 units of 'Hongcheon Kumho Eoullim The First.' This complex is the first apartment to be pre-sold in the Hongcheon area in seven years.