"If It's a Gun, Not a City... Non-Regulated Areas See Hot Demand for Sales and Applications Due to Regulatory Balloon Effect"

56,609 Housing Units for Sale in Non-Regulated Areas This Year... 7,212 More Than Last Year
Icheon City, Which Had 'Zero Sales' Last Year, Now Offering 4,628 Units
65.5% Increase in the Capital Region Alone
Average Competition Rate of 8.3 to 1 in Three Gyeonggi-do Counties: Yangpyeong, Gapyeong, and Yeoncheon

[Asia Economy Reporter Ryu Tae-min] As most of the Seoul metropolitan area is tied up with loans and resale restrictions due to government real estate regulations, the popularity of new apartment complexes in non-regulated areas continues. In particular, there seems to be a rush of applicants waiting to apply for apartments in the county (gun) areas of Yangpyeong, Gapyeong, and Yeoncheon in Gyeonggi-do.

According to Real Estate Info on the 12th, a total of 56,609 households (based on private sales, excluding rentals) are scheduled to be supplied in non-regulated areas nationwide this year. This is 7,212 more households than the 49,397 supplied in the same areas last year.

In the non-regulated areas within the metropolitan area, 8,187 households are scheduled for supply, an increase of 3,242 households (65.5%) compared to 4,945 households last year. In small and medium-sized cities in the provinces, 44,414 households are planned this year, up 8,247 households from 36,167 last year.

Especially in Icheon, Gyeonggi-do, where there were no supplies last year, 4,628 households are scheduled for supply this year. This accounts for more than half of the non-regulated area supply in the metropolitan area. In Pocheon and Dongducheon, 1,207 and 889 households are scheduled for supply, respectively. Real Estate Info Team Leader Kwon Il said, “Icheon is an area with many industrial complexes and has a large waiting demand for new apartments,” adding, “Since it is a non-regulated area where subscription and loan conditions are relatively less strict, there is a high possibility that demand from outside areas will also flock in.”

As the balloon effect continues in the sales market, some non-regulated areas are seeing subscription competition rates comparable to regulated areas. According to the Korea Real Estate Board, in the first quarter of this year, 2,579 households supplied in Yangpyeong, Gapyeong, and Yeoncheon counties in Gyeonggi-do received 21,623 applications. The average competition rate reached 8.3 to 1. These three areas remain counties (gun) without being promoted to cities (si) in the metropolitan area. This is a clear change from the fourth quarter of last year, when the competition rate was only 1.1 to 1.

Last month, ‘Yangpyeong Station Hanla Vivaldi Complex 1 and 2’ recorded an average first-priority competition rate of 13.51 to 1. In Gapyeong, ‘e-Pyeonhansesang Gapyeong First One’ and ‘Gapyeong Xi,’ launched in January, closed first priority with competition rates of 6.28 to 1 and 11.44 to 1, respectively.