Soaring Housing Prices in Southern Gyeonggi... After Dongtan and Uiwang, 'Osan' is Next

- Prices Have Room to Rise as They Haven't Increased Much Until Recently
- Competition Rates Are Usually Tens to One... Inquiries Surge for Soon-to-Be-Launched Properties

House prices in the southern Gyeonggi region continue to rise. This is due to the perception that the area has been undervalued and several upcoming transportation improvements connecting it to Seoul. The number of places joining the '1 billion won club' has already increased in Dongtan and Uiwang, and Osan real estate is also showing signs of excitement.

According to the KB Housing Price Trend, Osan recorded the third highest price increase among metropolitan cities from January to May this year, with a rise of 13.6%. Narrowing down to the southern metropolitan area, it had the highest increase, significantly surpassing Seoul (4.9%) and the metropolitan average (8.3%). Ansan (13.2%), Uiwang (12.6%), and Hwaseong (9.3%) also saw substantial increases. These areas had not been among the top price growth regions last year, indicating high potential for price appreciation.

Record-high prices are emerging with each transaction. An 84㎡ unit at ‘Indeogwon Prugio El Centro’ in Uiwang was traded for 1.53 billion won in April. This is the first time a unit of 84㎡ in Uiwang has exceeded the 1.5 billion won loan prohibition threshold. A 102㎡ pre-sale right at ‘Dongtan Station Lotte Castle Trinity’ in Hwaseong set a new record at 1.89 billion won in May. An 84㎡ unit at ‘Grang City Xi’ in Ansan was traded for 865 million won in March.

Osan also shows a remarkable upward trend. ‘The Sharp Osan Central’ became the highest-priced apartment in Osan in May, trading at 760 million won, more than 100 million won higher than the previous transaction. There are only a few listings available, with asking prices reaching up to 900 million won. ‘Seodongtan Station The Sharp Park City’ also set new record prices with 84㎡ units selling for 650 million won in May. Asking prices are around 700 million won.

Additionally, improvements in transportation networks are fueling price increases. For example, Osan is expected to benefit from the extension of the Bundang Line (Osan to Giheung) as outlined in the ‘4th National Railroad Network Construction Plan’ announced in April. Once extended, it will be possible to travel directly to Gangnam and Bundang without transfers.

A real estate expert said, “The southern Gyeonggi area, which had lagged behind Seoul in apartment price increases, has seen price rises driven by development prospects and transportation network expansion. Also, the demand for homeownership among the so-called ‘young leveraged’ generation in their 20s and 30s, following last year’s sharp rise in Seoul apartment prices, has had a significant impact.”

In particular, the ‘subscription’ fever, considered the best strategy for homeownership, is also hot. According to the Korea Real Estate Agency’s Subscription Home, ‘Hoban Summit Granville & Lateras’ launched in Osan in April recorded an average first-priority competition rate of about 15 to 1. This is about six times higher than the competition rate for apartments launched in the Osan area at the end of last year. In May, Dongtan also recorded the highest-ever average first-priority competition rate.

Newly launched complexes are also receiving a flood of inquiries. For example, inquiries about ‘The Sharp Osan Elifore’ have surged as its launch approaches. It consists of 927 units with exclusive areas of 59, 75, and 84㎡. According to the 2035 Osan Urban Basic Plan, a central park of about 800,000㎡ (including a sports park, lawn plaza, and outdoor waterfront stage) is planned right next to the complex. This is larger than the combined size of Dongtan Lake Park (about 460,000㎡) and Dongtan Central Park (about 300,000㎡). The complex will also feature an outdoor water play area where children can play freely.

An official from a real estate agency in Osan said, “As it is a branded apartment and residential environment improvements are continuously emerging, demand from buyers remains strong.”

In addition, inquiries are pouring in for newly launched complexes in Pyeongtaek, Hwaseong, and other areas. A real estate expert said, “Since there is no sign of the upward trend in metropolitan apartment prices slowing down, demand for reasonably priced new homes through subscriptions appears to be very strong. As prices continue to rise, securing a unit as soon as possible is the most rational choice.”