[Practical Finance] 80,000 Households for Sale in Gyeonggi-do by Year-End... Focus on 'An, Si, Seong'

59,014 Households for Sale in Southern Gyeonggi... Concentrating 76.5% of Total Supply
Rising Stars Ansan, Siheung, Hwaseong... High Subscription Rates and Housing Price Growth
North Region's Future Value Rises with Development Boosts like GTX Stop at Dongducheon Deokjeong Station

[Asia Economy Reporter Kangwook Cho] Amid the heated real estate market in the metropolitan area this year, from June, the end of the first half, through the second half of the year, the Gyeonggi Province housing market is expected to see a competitive supply battle between the southern and northern regions. The southern region will have supply in Yongin City, Anyang City, and Yangpyeong County, while the northern region will continue to supply in Dongducheon City, Pocheon City, and Uijeongbu City. The total supply planned in the Gyeonggi housing market by the end of the year is approaching 80,000 households.

◆ Among a total of 77,000 households, 76.5% are in southern Gyeonggi... ‘An·Si·Seong’ showing strong performance = According to Real Today, a real estate research firm, the total supply planned in the Gyeonggi housing market from this month through December reaches 77,128 households. Of these, 59,014 households, accounting for 76.5%, will be supplied in the southern region, while the northern region plans to supply about 18,114 households, approximately 23.4%.

So far, excluding the metropolitan area’s leading regions such as Suwon, Yongin, and Seongnam, which have been popular due to their high accessibility to Seoul, the southern Gyeonggi region has shown continuous strength. Particularly noteworthy are the areas known as An·Si·Seong, referring to Ansan, Siheung, and Hwaseong. As these areas have recently emerged as major trends, the demand from the 30-40 age group, whose home purchase rate has increased, has risen. They have settled in these areas to avoid the soaring apartment prices in Seoul and some other metropolitan areas, resulting in high subscription rates and housing price growth.

Looking at data analyzed by Real Estate Info, a real estate analysis firm, based on the Ministry of Land, Infrastructure and Transport’s actual transaction prices, the first phase of Dabang Nobleland The Prestige in Songsan New Town, completed in June 2018, saw the average sale price for an 84㎡ unit rise from around 300 million KRW at the time of sale to 800 million KRW as of April this year. Ansan and Siheung also saw premiums well above the initial sale prices. The Grand City Xi, which was sold for the high 300 million to low 400 million KRW range for an 84㎡ unit, was transacted at 736.67 million KRW in March this year, just one year after moving in. Similarly, Hoban Summit Place Phase 2 in Baegot New Town, Siheung, supplied at around 400 million KRW for the same unit type (moved in July 2019), was transacted at about 700 million KRW this year, confirming a price increase of about 300 million KRW compared to the sale price.

◆ Hot subscription enthusiasm in southern Gyeonggi including Yongin, Anyang, and Yangpyeong = The southern region’s supply will be provided through urban redevelopment, reconstruction, and district unit planning zones. Yongin, Anyang, and Yangpyeong are representative areas.

In Yongin City, Hyundai Engineering is scheduled to supply ‘Hillstate Yongin Gojin Station’ this month in Gojin-dong, Cheoin-gu, Yongin City, at Gojin Jindeok District D1 and D2 blocks. The complex will be built with 22 buildings, ranging from 4 basement floors (3 basement floors for D2 block) to 30 floors above ground, totaling 2,703 households. The number of households per block is △D1 block 1,345 households △D2 block 1,358 households. A 4Bay plate-type structure (excluding some units) that provides good lighting and ventilation will be introduced, and ample storage space designs such as dressing rooms and pantries (excluding some units) will be provided. It adjoins the Gojin District, where kindergarten, elementary, and middle school establishment sites and a high school are located. Residents can also use convenience facilities such as E-Mart Yongin branch and Yongin Central Market. Through Everline Gojin Station, transfers to the Suin-Bundang Line at Giheung Station and access to Seoul and the metropolitan area are possible. The Yongin IC on the Yeongdong Expressway allows access to the soon-to-be-opened Metropolitan Area 2nd Ring Expressway and the 2nd Gyeongbu Expressway.

In Anyang City, Daewoo Construction, Hyundai Construction, and GS Construction plan to supply ‘Anyang Proud Hill’ in July in Bisan 3-dong 281-1 area, Dongan-gu, Anyang City. The complex will be built with 2,739 households, of which 689 households will be offered to the general public. It is adjacent to Bisan Elementary School and accessible to the Pyeongchon-dong academy district. Transportation networks such as Gwanak-daero, the 2nd Gyeongin Expressway, and the Metropolitan Area 1st Ring Expressway are also available. Additionally, the Anyang Sports Complex Station (planned) on the Wolgot-Pangyo Line will be constructed near the complex in the future.

In Yangpyeong County, Ilsin Construction plans to supply ‘Yangpyeong Gongheung 3 District Humanville (tentative name)’ in September in Gongheung-ri 418 area, Yangpyeong-eup, Yangpyeong County. The complex will be built with 418 households of 84㎡ exclusive area. Nearby are educational facilities such as Yangpyeongdong Elementary School and Yangpyeong High School, as well as convenience facilities including Hanaro Mart, Yangpyeong Hospital, and Yangpyeong County Office. Residents can use Yangpyeong Bus Terminal, Gyeongui-Jungang Line Yangpyeong Station, and the Namyangpyeong Highpass IC on the Jungbu Inland Expressway to travel to adjacent metropolitan areas.

◆ Northern areas including Dongducheon, Pocheon, and Uijeongbu... Future value expected due to development benefits = The northern region’s supply includes a mix of old towns and new towns. In Dongducheon City, Dongbu Construction plans to supply ‘Jihaeng Station Centreville Parkview’ in June at B10 block (Jiheong-dong 691-2), Saengyeon Housing Development District, Dongducheon City. The complex will be built with 5 buildings from 1 basement floor to 20 floors above ground, totaling 314 households of 84㎡ exclusive area. Nearby are Sincheon Elementary School, Sadong Elementary School, and Saengyeon Middle School. Commercial facilities formed around Line 1 Jihaeng Station are also accessible. The Deokjeong Station, where the Metropolitan Area Express Train (GTX-C) stopping is planned and scheduled to start construction within the year, is just one stop away. Upon completion, it will take about 30 minutes to reach Seoul (Samsung Station). The Paju-Yangju section of the Metropolitan Area 2nd Ring Expressway is also scheduled to open in 2023.

In Pocheon City, Daewoo Construction plans to supply ‘Pocheon Taebong Park Prugio (tentative name)’ in August at Songu-ri San 18-1, Soheul-eup, Pocheon City. The complex will be built with 628 households of 84㎡ exclusive area. Nearby are school districts including Taebong Elementary School and Songu Middle School. The complex has access to Seondan IC and Soheul JC on the Guri-Pocheon Expressway.

In Uijeongbu City, POSCO Construction plans to supply ‘Uijeongbu Rhythm City The Sharp (tentative name)’ in September at San-gok-dong 399 area, Uijeongbu City. The complex will be built with 536 households. A site for an elementary school establishment is located nearby, and large marts such as Costco and E-Mart are accessible. The Guri-Pocheon Expressway Dong Uijeongbu IC allows easy access to adjacent metropolitan areas.

Real estate experts say, "For general demanders, relocation to other regions is difficult due to work or children’s education, so even if regulations are tightened, many still push themselves to secure housing," adding, "There is a growing tendency to seek areas with high future value such as improved transportation networks, where price increases have not been as steep compared to areas close to Seoul in the metropolitan area."