Sokcho Leads Nationwide Apartment Price Increase This Year
Local Markets Stall, But Sokcho Maintains Steady Growth
Transportation Improvements and Second House Demand Boost Outsider Investment Up
2022 Commemorative Photo Zone Sculpture Installed on the White Sand Beach of Sokcho Beach [Image Source=Yonhap News]
Amid the slowdown in the local real estate market due to government loan regulations and interest rate hikes, apartment prices in Sokcho, Gangwon Province continue to soar, drawing attention. The expansion of transportation networks has improved accessibility to the Seoul metropolitan area, and the increase in tourists and demand for second houses due to COVID-19 have significantly boosted purchases by outsiders, which is interpreted as driving up Sokcho's housing prices.
According to the Korea Real Estate Board on the 17th, apartment prices in Sokcho, Gangwon Province have risen by 0.70% this year, showing the highest increase nationwide. This contrasts with the national average increase of 0.06% during the same period. Sokcho also recorded the highest nationwide increase last week with a 0.28% rise.
Last year, Sokcho led the rise in Gangwon Province's housing prices with an average apartment price increase of 17.34%. As of December last year, the average apartment price was 216.19 million KRW, up 77.25 million KRW in one year, marking the largest increase in Gangwon Province.
The industry views the expansion of transportation networks as the main cause of the price increase. Since the opening of the Seoul-Yangyang Expressway in 2017, accessibility to the metropolitan area has greatly improved, leading to expanded development projects such as apartments and hotels, and attracting more tourists.
In particular, the government began full-scale construction of the Gangneung-Jejin railway project, the only missing section of the Donghae Line, at the end of last year. Sokcho is located between Gangneung and Jejin. When this section opens in 2027, the Donghae Line will connect Busan Station to North Korea's Rajin Station, increasing the geographical importance of Gangwon Province. Especially, Sokcho is also scheduled to open the East-West High-Speed Railway connecting Chuncheon in 2027, significantly improving physical accessibility to Seoul.
With growing demand for 'ocean views,' investment in second houses near the seaside areas of Joyang-dong and Dongmyeong-dong in Sokcho is also increasing. The 114㎡ (exclusive area) unit at e-Pyeonhansesang Yeongnyangho in Dongmyeong-dong, Sokcho, was traded at 718 million KRW on November 26 last year, setting a new record price, and the 96㎡ unit at Sokcho Seohee Starhills The Bay in Joyang-dong also recorded a highest price of 640 million KRW on December 6 last year.
Despite the nationwide perception of housing price peaks, buying demand for real estate in Gangwon Province continues. The apartment sales supply-demand index in Gangwon Province by the Korea Real Estate Board rose to 102.5 last week, up from 102.4 the previous week. This means that buying demand remains stronger than selling pressure. A representative from a real estate agency in Joyang-dong said, "Apartment prices in Sokcho have risen significantly recently due to transportation benefits," adding, "Inquiries from outsiders about purchases are also steadily continuing."
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