Gwanggyo Junheung S-Class 129㎡ Actual Transaction on the 4th
3.25 Billion KRW... Supply Price 62.5 Million KRW per Pyeong
Skyrocketing Ultra-High House Prices in Major Gyeonggi Areas
[Asia Economy Reporter Moon Jiwon] The flagship apartment in Gwanggyo New Town, Suwon City, Gyeonggi Province, has set a new record price by being traded for over 3.2 billion KRW. This marks an increase of about 1.1 billion KRW in just one year. Despite the government's policy to expand supply to curb housing prices in Seoul and the metropolitan area, ultra-high-end complexes with good location and future value prospects are seeing prices skyrocket even in Gyeonggi Province.
According to the Ministry of Land, Infrastructure and Transport's real transaction price disclosure system on the 14th, a 129㎡ (exclusive area, 13th floor) unit in Jungheung S-Class located in Gwanggyo New Town, Suwon, was traded for 3.25 billion KRW on the 4th. Since the last transaction at 2.1 billion KRW in May last year, the price has risen by 1.15 billion KRW in about 1 year and 1 month. Based on the supply area (52 pyeong), the price per 3.3㎡ (pyeong) reached 62.5 million KRW.
In this complex, a 109㎡ unit was traded for 2.34 billion KRW on the 10th of last month, also setting a new record price for that size. Gwanggyo area was designated as a speculative overheating district under the June 17th measures last year, making mortgage loans impossible for houses priced over 1.5 billion KRW. However, transactions continue mainly among 'cash-rich' buyers, pushing prices of high-end apartments higher.
An industry insider said, "This complex has excellent lake views and is considered the flagship apartment in the area. Although regulations have tightened and tax burdens increased due to real estate measures, demand to live in more pleasant and better locations remains strong, so the price rise of high-end apartments seems to be continuing."
Besides Suwon, apartment prices in major Gyeonggi areas such as Pangyo and Gwacheon are also soaring. A 139.72㎡ unit in Pangyo Prugio Granble, Bundang-gu, Seongnam City, was traded for 3.55 billion KRW in April. This is an increase of 530 million KRW from the 3.02 billion KRW transaction on September 18 last year. A 244.58㎡ unit in Hyundai I-Park Complex 1, Bundang-gu, was also sold for 3.05 billion KRW last month. These prices are hard to find even in some parts of Seoul excluding Gangnam area.
Recently, with growing expectations for the Metropolitan Area Express Train (GTX), apartment prices in Uiwang City, where there is high anticipation for additional station selection on Line C, are also rising. An 84.98㎡ unit in Indeokwon Prugio El Centro, Poil-dong, was traded for 1.63 billion KRW on the 6th. Industry experts analyze that trust in public development promoted by the ruling party and government is gradually declining, and with expectations of some real estate regulation easing ahead of next year's presidential election, buying demand is increasing further.
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