Housing prices in the Seoul metropolitan area, including Seoul, are fluctuating.
Looking at the apartment prices in Seoul for the first week of July announced by the Korea Real Estate Board, the rate recorded a 0.15% increase, up 0.03% from the previous week’s 0.12%, showing the largest rise in a year and a half.
The upward trend in Seoul housing prices is gradually spreading to the metropolitan area. According to the Ministry of Land, Infrastructure and Transport’s actual transaction prices, a 139㎡ unit in 'Pangyo Prugio Granble' in Baekhyeon-dong, Seongnam-si, Gyeonggi Province, was traded for 3.55 billion KRW in April. This is more than 500 million KRW higher compared to the 3.02 billion KRW transaction in September last year.
The pre-sale rights for a 102㎡ unit in 'Dongtan Station Lotte Castle Trinity' in Dongtan 2 New Town, Hwaseong, were also traded for 1.89 billion KRW on the 10th of last month, marking an increase of over 100 million KRW within a month.
In this situation, the principal and interest repayment burden for people trying to buy homes in Seoul has risen to the highest level in 12 years. Although interest rates have dropped to historically low levels, the amount of loans has increased due to soaring housing prices.
According to the Korea Housing Finance Corporation’s Housing Finance Research Institute, the Housing Affordability Index (K-HAI) for Seoul was recorded at 153.4 as of the fourth quarter of last year. This is the highest level in 12 years since the fourth quarter of 2008 (157.8).
The Housing Affordability Index indicates how much principal and interest repayment burden a median-income household must bear when taking out a loan to purchase a median-priced home. An index of 100 means that 25% of income is spent on principal and interest repayment for a mortgage loan; the higher the number, the greater the burden.
As it becomes increasingly difficult to own a home in the metropolitan area, 'Taepyeong Hills One,' where homes can be purchased at prices lower than market value, is gaining attention.
Currently, Taepyeong Hills One is in the second phase of recruiting union members after the first phase recruitment ended. It consists of floor plans of 59㎡A, 59㎡B, 74㎡, and 84㎡, with only some 59㎡ units still open for union member recruitment.
According to a representative from the Taepyeong Hills One sales office, “Amid continuous housing price increases, the project is adjacent to Wirye New Town and benefits from development prospects in the old city of Seongnam, providing strong price resilience. It is being offered at prices lower than market value, and the second recruitment phase is expected to close soon.”
Taepyeong Hills One has the advantage of being located in the old city area, making daily life convenient. Several public institutions are nearby, including the administrative welfare center, 119 emergency services, and the tax office.
There are also excellent educational facilities around the complex, including Seongnam Elementary, Geumbit Elementary, Sinheung Elementary, Huimangdae Elementary, Seongnam Middle, Seongnam Girls’ Middle, Seongnam Girls’ High, Donggwang High, Seongil High, Seongil Technical High, and Seongnam High. The Gyeonggi Seongnam Education Library, a provincial library, is also within walking distance.
Meanwhile, the Taepyeong Hills One housing information center is located in Yongin-si, Gyeonggi Province. For more details, inquiries can be made by phone to the information center, or consultations are available by appointment.
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