Apartment Price Increase Rate in March 3.64%... 'Nationwide No.1'
Expectations for Infrastructure Development Including Transportation Measures
[Asia Economy Reporter Ryu Tae-min] "Since Gwangmyeong and Siheung districts were designated as new towns, inquiries from buyers have never stopped. Although there was a pause when talks of canceling the 3rd phase new towns surfaced, demand surged again after the government announced it would proceed." (A representative from Siheung Eunhaeng-dong A Real Estate Agency (licensed))
About a month after the government announced the Gwangmyeong and Siheung new towns, the fever for housing prices in Siheung shows no signs of cooling. Due to the 'halo effect' of the new town announcement, demand has surged, and apartment prices in Siheung rose the most nationwide last month.
On the 13th, Asia Economy analyzed weekly apartment price trend data from the Korea Real Estate Board and found that from March 1 to 29, about a month after the new town announcement, apartment sale prices in Siheung increased by 3.64%. This is the highest rate nationwide. Gyeonggi Uiwang recorded 3.55%, and Ansan followed with 3.42%.
Apartment transactions also surged. According to the Gyeonggi Real Estate Portal, transactions in February were 1,172, a 30.6% increase compared to January's 897. As of this day, March transactions also exceeded 1,000 with 1,043 cases. Considering the reporting deadline is up to about two weeks, the number of transactions in March is expected to surpass February.
84㎡ Units Rise About 200 Million KRW in One to Two Months... Asking Prices Soar to 1.4 Billion KRW
Several complexes have seen prices jump by about 200 million KRW in just one or two months. According to the Ministry of Land, Infrastructure and Transport's real transaction disclosure system, the 84㎡ (exclusive area) unit at ‘Siheung Central Prugio’ in Daeya-dong, Siheung, was traded at 863 million KRW on the 5th of last month, setting a new record price. This is about 200 million KRW higher than the transaction price of 670 million KRW on February 4, when the 2.4 measures were announced. Currently, asking prices for this size range from 900 million to 1.4 billion KRW.
The ‘Siheung Eun-gye Woomyul The First’ 115㎡ unit located in Eunhaeng-dong also changed hands for 1.01 billion KRW on the 11th of last month. Considering it was traded for 850 million KRW on February 9, this represents an increase of over 150 million KRW in one month. A representative from nearby A Real Estate said, "With the new town being established nearby, expectations that the residential environment in this area will improve have increased housing demand."
This steep rise is due to growing expectations from the 3rd phase new town designation, including transportation measures such as the Sinansan Line and Daegok-Sosa Line, as well as various infrastructure developments. Professor Seo Jin-hyung of Gyeongin Women's University (President of the Korean Real Estate Society) explained, "With the new towns in Gwangmyeong and Siheung, there are many forecasts that various infrastructures will be built in the nearby Siheung area, increasing demand."
The influx of younger buyers also seems to have influenced the market. Park Won-gap, Senior Specialist at KB Real Estate, said, "Siheung has many mid- to low-priced apartments suitable for young buyers, so recent demand for 'owning a home' has concentrated here."
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