Housing Prices in First-Generation New Towns Also Fluctuate Following Seoul

Sudden Drop in Listings in Bundang, Ilsan, Pyeongchon, and More... Record-High Prices Continue

Following the presidential election, Seoul housing prices, centered around Gangnam, have been fluctuating, and this phenomenon appears to be spreading to the first-generation new towns in Gyeonggi Province. Listings are sharply decreasing, and record-high prices are being reported in various areas.

According to the real estate information platform Asil on the 13th, since the presidential election on March 9th until that day, apartment listings in Bundang-gu, Seongnam City, and Ilsandong-gu, Goyang City, decreased by 7.8% and 4.2%, respectively. Listings also declined in Dongan-gu, Anyang City (-7.8%), Gunpo City (-4.0%), and Jungdong, Bucheon City (-2.5%). This contrasts with the overall 1.1% increase in listings across Gyeonggi Province during the same period. These areas with reduced listings are home to the first-generation new towns of Bundang, Ilsan, Pyeongchon, Sanbon, and Jungdong.

The previously downward-stabilizing price trend has also reversed. According to the Korea Real Estate Board, in the fourth week of March, the apartment sale price change rate in Ilsandong-gu rose to 0.03%, up 0.04 percentage points from the previous week’s -0.01%, marking a shift to an increase. Bundang-gu also saw a slight rise, moving from -0.01% to a stable 0.00%. Record-high transactions are occurring in specific complexes. On March 5th, Gangchon Donga (84㎡) in Madu-dong, Ilsandong-gu, was traded at 745 million KRW, surpassing the previous highest price of 705 million KRW recorded in March. Yangji Village Complex 2 (135㎡) in Sunae-dong, Bundang-gu, which had fallen to 1.75 billion KRW earlier this year, set a new record high of 2.05 billion KRW on the 19th of last month.

Following President-elect Yoon Seok-yeol’s pledge to redevelop the first-generation new towns, the issue has become a major topic ahead of the June local elections, heating up the market. Amid this, Yoon has presented specific plans including streamlining approval procedures for redevelopment projects, easing regulations on safety inspection systems, relaxing the excess profit recovery system for reconstruction, and increasing floor area ratios. Candidates from the ruling party running for Gyeonggi Province governor have also made revitalizing redevelopment a key campaign promise.

However, concerns have been raised about the market’s short-term overheating. On the 11th, Won Hee-ryong, nominee for Minister of Land, Infrastructure and Transport, warned the market in a meeting with reporters, stating, "It is a misconception to think that one can gain speculative profits due to deregulation." Furthermore, the enactment of a special law for the first-generation new towns remains uncertain. Since the Democratic Party opposes or takes a cautious stance, difficulties are expected before deregulation becomes a reality.