[Asia Economy Reporter Ryu Tae-min] The real estate market around Sangnoksu Station in Ansan, Gyeonggi Province, which had been bustling due to the establishment of Sangnoksu Station on the GTX (Great Train Express) C Line, is recently freezing again. The transportation benefits were already reflected in prices last year, and since last month, asking prices have soared, increasing the burden on buyers.
According to the Korea Real Estate Board on the 30th, the apartment price change rate in Sangnok-gu, Ansan this month was limited to a 0.06% increase. In particular, the first and second weeks of March showed a 0.00% increase, indicating that the growth rate had stopped. This contrasts with the sharp 0.16% rise in the fourth week of February after the Ministry of Land, Infrastructure and Transport announced on the 24th of last month that Sangnoksu Station would be included in the implementation agreement for the GTX C Line.
Nearby real estate agencies explained that the sales market has frozen as buyers have stopped coming. The representative of A Real Estate Agency in Bono-dong, Sangnok-gu, Ansan City said, “After the GTX announcement last month, homeowners raised asking prices by more than 100 million won due to expectations, increasing the burden on buyers,” adding, “Even the purchase inquiries that existed earlier this year have completely disappeared, and currently only urgent sales are being transacted.”
The complexes around Sangnoksu Station had already reflected price increases of about 100 million to 150 million won last January when news spread that the GTX C Line could be used as a turnaround line. On top of that, asking prices have recently risen again, and as the real estate market nationwide has also slowed, investment demand has decreased, resulting in almost no actual contracts. In fact, within one week after the GTX announcement on the 24th of last month, sales transactions increased significantly to 21 cases, but this month, as asking prices rose, the market froze, resulting in only 5 cases in total.
There are also voices advising caution against chasing purchases in these complexes. Kyung-hee Yeo, Senior Researcher at Real Estate R114, said, “Although house prices in the area are likely to rise in the long term thanks to transportation benefits, prices have already risen significantly, so it is necessary to establish an investment strategy carefully,” and advised, “It is also important to fully consider risk factors such as additional interest rate hikes or loan regulations.”
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
