Metropolitan Area Real Estate Booms Consecutively, Apartment Prices Soar but "No Listings Available?"

Major Areas in the Seoul Metropolitan Area Including Anyang Show Steady Transaction Volume Despite Sharp Price Increases

[Asia Economy Reporter Jo Gang-wook] This year, the real estate market is heating up day by day, centered around the Seoul metropolitan area. Although house prices are soaring daily, the number of listings is decreasing, and it is becoming increasingly difficult to secure new apartments through the point-based subscription system. In fact, apartment prices in the metropolitan area, including Seoul, Gyeonggi, and Incheon, have recorded the highest increase in nine years, showing no signs of slowing down.

According to the Korea Real Estate Board on the 27th, the nationwide apartment sale prices rose by 0.27% in the third week of June (as of the 21st), an increase from last week's 0.26%.

In particular, apartment prices in the metropolitan area rose by 0.35%, marking the highest weekly increase since the Real Estate Board began compiling weekly statistics in May 2012, a record spanning 9 years and 1 month.

Already in February this year, the apartment price increase rate in the metropolitan area was 1.71%, surpassing the national average increase rate of 1.31%, marking the highest figure in 14 years since April 2008 (2.14%). Specifically, Gyeonggi Province showed a 2.3% increase that month, and Incheon also expanded its increase rate since last August, recording a 2.27% rise in April.

The new apartment supply market in the metropolitan area is also hot. As of the 18th, there were a total of 58 supply complexes in the metropolitan area this year, of which 47 successfully closed their subscription in the first priority. Notably, among the top 10 complexes with the highest subscription competition rates, seven are in the metropolitan area, including ‘Dongtan 2 New Town Dongtan Station Dietre’ (average 809:1), which recorded the highest competition rate this year.

Amid this enthusiasm, unsold inventory is also decreasing. The unsold inventory, which was 10,529 units in the first quarter of 2019, decreased to 4,202 units in the first quarter of last year and further dropped to 1,520 units in the first quarter of this year, marking an 85% reduction in just two years. As the metropolitan apartment market gains explosive popularity and even experiences a shortage phenomenon, newly supplied apartments are expected to command high premiums.

Supply in the metropolitan area that attracts buyers' attention is also expected this month and next.

Pyeongchon Trizia bird's-eye view / Provided by Hyundai Construction Consortium.

The Hyundai Construction consortium (Hyundai Construction, SK Ecoplant, Kolon Global) opened the model house for ‘Pyeongchon Trizia,’ which is being built through the Yungchang Apartment Surrounding District Housing Redevelopment Project at 929 Hogye-dong, Dongan-gu, Anyang-si, Gyeonggi Province, on the 25th, starting the full-scale sales schedule.

This large apartment complex consists of a total of 2,417 households (including 196 rental units) across three complexes, with 22 buildings ranging from five basement floors to 34 above-ground floors, offering seven types (including rentals) with exclusive areas from 36 to 84㎡. Among them, 913 units with exclusive areas of 59 to 74㎡ are for general sale. The supply is mainly designed with south-facing slab-type units, and some units have views of Hogye Neighborhood Park located right in front of the complex.

Jeil Construction opened the model house for ‘Unjeong New Town Jeil Punggyeongchae 2nd Grand Venue’ in Block A10 of Unjeong New Town 3 District, Paju, Gyeonggi Province, on the 25th and started sales. It consists of a total of 660 households with exclusive areas ranging from 59 to 104㎡. It offers convenient access to Gimpo, Goyang, and Seoul city centers via Jayuro, 2nd Jayuro, and the Seoul-Munsan Expressway.

Dongbu Construction is selling ‘Jihaeng Station Centreville Parkview’ in Block B10 of Saengyeon Residential Development District, Dongducheon, Gyeonggi Province, this month. It consists of 314 households, all with a single exclusive area of 84㎡. Jihaeng Station on Seoul Metropolitan Subway Line 1 is within walking distance.

Kangsan Construction plans to supply ‘Songsan Lianbiche,’ the region’s first large-scale detached terrace house complex, in Blocks EB4 and E5 of the East District of Songsan Green City, Hwaseong-si, Gyeonggi Province, in July. The complex will consist of 259 households with an exclusive area of 84㎡. As a terrace-specialized housing, all rooms have terrace spaces, boasting wide usability of space.

A real estate expert said, “As house prices gradually rise, the metropolitan apartment market is heating up due to buyers’ eagerness to purchase even now,” adding, “Existing properties are disappearing, and new apartments are selling out even unsold units, so this enthusiasm is expected to continue for the time being.”