House Prices Rebound Mainly in Seoul Reconstruction Complexes
Housing Price Instability Also in Incheon, Ansan, Siheung, and Other Seoul Metropolitan Areas
Uiwang 14.6%, Siheung 10.6%, Ansan 11.3%
Since the inauguration of Seoul Mayor Oh Se-hoon, apartment prices in Seoul have rebounded, especially in reconstruction complexes, while the housing price surge in major metropolitan areas such as Incheon, Siheung, and Ansan is also significant. Due to development benefits like the Metropolitan Area Express Train (GTX) and relatively lower prices compared to Seoul, buying demand has surged, with some areas already approaching double the increase rate of last year.
According to the Korea Real Estate Board on the 23rd, Incheon apartment prices rose by 0.51% compared to the previous week as of the 19th, showing the highest increase rate among all cities and provinces nationwide. Incheon is attracting attention from both actual buyers and investors due to various transportation developments. Although the GTX-D line (Gimpo Janggi~Bucheon Sports Complex) connection to Gangnam was excluded from the 4th National Railroad Network Plan announced the day before, the inclusion of the 2nd Gyeongin Line and the extension of Incheon Line 2 to Goyang marked a partial success.
The 2nd Gyeongin Line connects Cheonghak Station in Yeonsu-gu, Incheon, to Noonsadong in the Gwangmyeong-Siheung district, reducing travel time from the current 76 minutes to 33 minutes, significantly improving transportation conditions. Apartment purchases by Seoul residents in Incheon have been increasing monthly, from 531 in January to 602 in February and 803 in March. For example, a 109.92㎡ (exclusive area) unit at The Sharp Central Park 1st Phase in Songdo-dong, Yeonsu-gu, Incheon, was traded for 1.048 billion KRW last month, with local real estate agents analyzing that "the price increase is steep."
In Siheung, Gyeonggi Province, apartment prices rose by 1.08% this week, the highest increase among regulated districts at the city, county, and district level nationwide. Since being designated as a 3rd New Town, Siheung has seen soaring housing prices due to expectations for transportation development and a shortage of rental properties. Although only four months have passed this year, the cumulative increase rate has already reached 10.61%, nearly double last year's 5.83%. The new Shinguro Line connecting Daeya in Siheung to Mok-dong was included in the new metropolitan railway plan announced the day before, suggesting that the upward trend in housing prices will continue.
Located in the western part of the metropolitan area, Ansan also shows a considerable increase rate. This week, prices rose by 0.80%, with a larger increase compared to the previous week, and the cumulative increase rate this year reached a remarkable 11.33%. Ansan's housing prices have surged due to the planned Shinansan Line and Ansan Jangsan District development projects, as well as growing expectations for the GTX-C line.
Uiwang, which has recently become the most notable city in the metropolitan area due to overlapping transportation benefits, saw apartment prices rise by 14.60% this year, the highest nationwide. This is nearly three times last year's total increase rate of 4.49%. With the development of the double-track railways Wolgot~Pangyo (Wolpan Line) and Indeokwon~Dongtan (Indong Line) near Indeokwon Station close to Uiwang, buying demand is pouring into Uiwang apartments. A Korea Real Estate Board official explained, "In Ansan, housing prices have risen mainly around station areas due to ongoing expectations for transportation environment improvements, while in Uiwang, prices have increased mainly in Cheonggye and Poil-dong, which are perceived as undervalued compared to neighboring areas."
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