New Apartment and Officetel Supply in Suwon and Hwaseong Draws Attention in April

[Asia Economy Reporter Kangwook Cho] As the peak season for housing sales arrives, apartments continue to be offered in areas within the metropolitan area that are being developed into emerging residential districts. These areas provide systematic infrastructure, offering excellent living conditions, and with the rise in local value following development, housing prices are also on the rise, attracting the attention of actual homebuyers.

According to real estate market analysis firm Real Estate Info on the 3rd, this spring, apartments and residential officetels are scheduled to be supplied in newly emerging residential towns such as Suwon (Gosaek District), Hwaseong (Bibong District), as well as Uijeongbu and Goyang.

Emerging residential areas typically refer to places where residential zones are planned and developed through urban development projects, new towns, housing site districts, or redevelopment projects. Since infrastructure such as roads, commercial facilities, schools, and parks are newly expanded around these residential areas, convenient and pleasant living is possible, making them highly preferred by actual homebuyers.

Emerging residential areas where development has been completed have also come to stand out as representative regions, leading the market prices in their respective areas. According to KB Kookmin Bank, the average sale price in Magok-dong, Gangseo-gu, Seoul, where the Magok Urban Development District is nearing completion, was 1.36468 billion KRW in February this year, making it the most expensive in Gangseo-gu. Similarly, Dasan-dong in Namyangju, which includes Dasan New Town, recorded 897.6 million KRW, leading the housing prices in Namyangju.

Looking at individual complexes, the price increase rate is remarkable. The ‘Hillstate Giheung’ with an exclusive area of 84㎡, located in the Giheung Station Area 1 Urban Development District (Yongin, Gyeonggi), which announced completion in November last year, was traded at 1.07 billion KRW in March, rising more than 500 million KRW (89.3%) compared to the average sale price at move-in (August 2018) of 565.16 million KRW. Likewise, ‘Segyo New Town Hoban Verdiem’ with an exclusive area of 84㎡ in the completed Osan Segyo District recorded a new high price of 630 million KRW in February.

The subscription fever is also intense. ‘Hoban Summit Granville II,’ supplied in January in Osan Segyo 2 District, Gyeonggi, attracted 14,854 applicants for 497 units in the first priority subscription, recording an average competition rate of 29.8 to 1. ‘City OCELE 4 Complex,’ launched in October last year through the Incheon Yonghyeon-Hakik 1 Block Urban Development Project, also completed contracts after recording average competition rates of 44.5 to 1 for apartments (245 units) and 75.1 to 1 for officetels (336 units), respectively.

A real estate official said, “Looking at places within the metropolitan area that are establishing themselves as emerging residential areas through various development projects, many have become popular as good places to live, attracting large residential demand, which in turn has led to sharp rises in housing prices. For actual buyers aiming to purchase a home this year, targeting new complexes with such potential is also a good strategy.”

Accordingly, demand is gathering in areas where supply in emerging residential districts has become visible. Among them, the most eye-catching is DL E&C’s residential officetel ‘e-Pyeonhansesang City Gosaek,’ which will be launched in May in the Gosaek 2 District area of Gwonseon-gu, Suwon, Gyeonggi Province. It consists of a total of 430 units, all with an exclusive area of 84㎡. The Gosaek District, where the project is located, is emerging as a core residential area in western Suwon and is being developed into a mini new town with about 4,400 households when combining Districts 1 and 2.

Woomi Construction plans to accept subscriptions in April for ‘Hwaseong Bibong District Woomirin,’ located in Block B4 of Bibong District, Hwaseong. It consists of a total of 798 households, all with an exclusive area of 84㎡. It is conveniently accessible to the metropolitan area’s 2nd Ring Expressway and Bibong-Maesong Expressway via Bibong IC on the Seohaean Expressway nearby.

Next, POSCO Construction will launch ‘The Sharp Rhythm City’ in April at Uijeongbu Rhythm City (Uijeongbu Complex Cultural Convergence District). It consists of a total of 536 households with exclusive areas ranging from 60 to 84㎡. It is the first and only private sale complex in Rhythm City and is close to Songsan-ro and Gosan Station on the Uijeongbu Light Rail Transit.

DL E&C will supply ‘e-Pyeonhansesang Jichuk Centum Garden’ in April in Jichuk District, Deogyang-gu, Goyang, Gyeonggi Province. It consists of a total of 331 households with an exclusive area of 84㎡. As it is a public housing site district, the price ceiling system will be applied, providing price competitiveness.

There are also places where supply has already started. Geumgang Housing is currently supplying ‘Geomdan Station Geumgang Penterium The Siglo 2nd Phase’ in Block RC4 of Geomdan New Town, Incheon. It consists of a total of 547 households, including 483 apartments with an exclusive area of 84㎡ and 64 officetel units with an exclusive area of 39㎡.

In Seoul, KB Real Estate Trust (construction by Shinsegae Construction Co., Ltd., entrusted by Wolsong Holdings) is supplying ‘Belive The Able’ near Sinchon Station, Seoul, where urban environment maintenance projects are becoming visible. It consists of 299 small-sized housing units with exclusive areas of 38 to 49㎡ and 34 officetel units.