Apartment Price Increase Rates in Gyeonggi and Incheon Five Times Higher Than Seoul's

"Buying Momentum 'Less Increased Compared to Seoul'"

On the 11th, the Jamsil apartment area as seen from Seoul Sky, the observation deck of Lotte World Tower in Songpa-gu, Seoul

The apartment price increase rate in Gyeonggi Province and Incheon Metropolitan City this year has been shown to exceed five times that of Seoul. This is analyzed to be due to the influx of buying demand along with the development and transportation network expansion benefits, as well as the evaluation that prices have risen less compared to neighboring Seoul.

According to the Korea Real Estate Board on the 13th, the apartment price increase rates in Gyeonggi and Incheon from the beginning of this year to March were 5.60% and 5.37%, respectively, surpassing five times that of Seoul (1.05%). The area with the highest increase rate is Uiwang City in Gyeonggi, which rose by a remarkable 12.86% in just three months. Uiwang benefits from the Wolgot-Pangyo double-track railway (Wolpan Line) and the expectation of the Metropolitan Area Express Railway (GTX), as well as many transportation advantages such as the Indeokwon-Dongtan double-track railway scheduled to begin construction in the second half of this year. A 84.985㎡ (exclusive area) apartment in Ojeon-dong, Uiwang City, on the Mugunghwa Seonggyeong line, was sold for 470 million KRW (4th floor) on the 2nd, breaking the previous highest price of 420 million KRW.

In addition, Sangnok-gu in Ansan City and Deogyang-gu in Goyang City (10.42%), and Yeonsu-gu in Incheon (10.00%) also rose by more than 10%. Other areas in the top 10 include Yangju City (9.94%), Namyangju City (9.72%), Danwon-gu in Ansan City (9.10%), Siheung City (8.53%), Uijeongbu City (8.46%), and Ilsanseo-gu in Goyang City (7.59%).

Compared to the rapid rise in Seoul and Gyeonggi, Incheon, which was relatively neglected, has recently seen concentrated catch-up buying demand. As of the survey on the 5th of this month, the apartment price increase rate in Incheon was 0.49%, expanding its rise for three consecutive weeks.

A 109.9269㎡ exclusive area apartment in The Sharp Central Park 1st Phase, Songdo-dong, Yeonsu-gu, Incheon, was sold for 1.048 billion KRW (38th floor) on the 19th of last month, surpassing 1 billion KRW for the first time. The Songdo Central Park Prugio 84㎡ was traded for 1.135 billion KRW in January, recording the highest price within Songdo for the same area.

Incheon also has many transportation and development benefits such as the extension of Incheon Subway Lines 1 and 2 to Geomdan, the extension of Seoul Subway Line 5, and GTX. Along with the perception that apartment prices have risen less while those in Seoul and Gyeonggi surged, it is interpreted that this attracts the interest of actual demanders and investors.

Meanwhile, as apartment prices rise, the auction market, where properties can be purchased cheaper than market prices, is also heating up. According to the 'March Auction Trend Report' by Gigi Auction, a specialized court auction company, the winning bid rate for apartments in Incheon was recorded at 103.8%, renewing the highest price again after about a year since April last year’s 103.9%. An apartment with an exclusive area of 84.9㎡ in Wonheung, Hakik-dong, Michuhol-gu, Incheon, auctioned on the 29th of last month, unusually exceeded a winning bid rate of 200% in the Incheon area (appraisal price 250 million KRW, winning bid 500 million KRW).