"Reason Behind Soaring Gyeonggi Housing Prices Revealed"…Seoul Residents' Purchase Share Surpasses 20%

Seoul Housing Prices and Jeonse Prices Soar, Real Demand Concentrates in Gyeonggi-do
Hanam, Guri, and Gwangmyeong Near Seoul Reach 40-50% Purchase Share

[Asia Economy Reporter Onyu Lim] The proportion of apartment purchases in Gyeonggi Province by Seoul residents has exceeded 20% for the first time. This appears to be because real demand buyers, unable to endure the soaring housing prices and jeonse prices in Seoul despite the government's warnings about the housing price peak, are actively buying apartments in the relatively cheaper Gyeonggi area. In particular, this phenomenon is analyzed to show that the purchase proportion by Seoul residents reaches 40-50% in Hanam, Guri, and Gwangmyeong, which have good accessibility to Seoul.

According to the Korea Real Estate Board on the 24th, as of July, there were a total of 16,580 apartment sales transactions in Gyeonggi Province, of which 3,355 transactions, or 20.2%, were purchased by Seoul residents. This is the first time the proportion of Seoul residents' apartment purchases in Gyeonggi has exceeded 20%. This proportion, which was 13.3% in January last year, increased to 15.1% in May, 18.4% in December, and after recording 19.3% in May this year, it has once again set a new high.

Among the 31 cities and counties in Gyeonggi Province, the areas with the highest proportion of apartment purchases by Seoul residents were Hanam, Guri, and Gwangmyeong. In Hanam, during this period, out of 187 transactions, 104 were purchased by Seoul residents, accounting for 55.6%. Being adjacent to Songpa and Gangdong districts in Seoul and improved accessibility due to the extension of Subway Line 5 seem to have attracted a large number of buyers. Guri, which borders Jungnang and Nowon districts, also had a purchase proportion by Seoul residents of 45.3%, with 111 out of 245 transactions. Next, Gwangmyeong, adjacent to Guro and Geumcheon districts, had a proportion of 40.4% (114 out of 282 transactions).

Experts analyze that the recent exodus from Seoul to Gyeonggi Province is a result of rising housing and jeonse prices. Seoul residents without homes, anxious about soaring housing prices, have chosen to live as homeowners in Gyeonggi Province despite the inconvenience of being farther from their workplaces. The reason tenants, who experienced the hardship of being homeless due to the intensified jeonse shortage after the implementation of the new lease protection law, are heading to Gyeonggi Province is in the same context.

The Korea Research Institute for Construction Industry analyzed, "Seoul residents in their 30s and 40s without homes find it difficult to purchase median-priced homes in Seoul or the homes they currently live in under jeonse with only jeonse funds due to rising housing prices and restrictions on mortgage loan ratios."

Due to this buying trend, housing prices in Gyeonggi Province are also rising rapidly. According to KB Kookmin Bank, the apartment sales price index in Gyeonggi Province rose by 18.68% from January to August this year. This is three times the 6.53% increase during the same period last year. It has already surpassed the cumulative increase of 12.66% for the entire last year. The average sales price also rose 20%, from 466.16 million KRW in January to 559.5 million KRW in August. Looking at actual transaction trends, this upward trend is even more evident. For example, the actual transaction price of a 93.94㎡ (exclusive area) unit in Hanam Seondong Misagangbyeon Prugio 2nd phase rose from 1.2 billion KRW in January to 1.3 billion KRW in August, increasing by 100 million KRW in seven months.

This content was produced with the assistance of AI translation services.