[Practical Finance] Gyeonggi-do's Historic 'Big Market'... Homebuyers Aim for Their Own House

Prime Complexes to Watch in the Seoul Metropolitan Area
Excellent Accessibility to Seoul and Superior Residential Environment
146,673 Units Scheduled for Sale This Year
High Demand in Goyang, Gwangmyeong, Bucheon, and More
DL E&C Jichuk and The Sharp Rhythm City Among Notable Projects

[Asia Economy Reporter Jo Gang-wook] Real estate consultant Park Jong-bok recently said on a broadcast, "They say to live a life paying interest rather than paying monthly rent. Interest means you have ownership under your name, but rent disappears once paid monthly." Park is known as the so-called ‘Midas touch of the real estate world,’ having increased his clients' assets by a whopping 6 trillion won. Starting from a basement room with a deposit of 5 million won, he grew into a property owner worth 50 billion won and emphasizes the importance of owning a home.

With the new government about to take office, expectations for revitalizing the real estate market are growing due to deregulation and development prospects. Amid this, this year, Gyeonggi Province is preparing to supply the second-largest number of new apartments in history. Newly supplied apartments in the metropolitan area, which have excellent accessibility to Seoul and good residential environments, are attracting attention. For genuine buyers who have been weighing the timing of purchasing a home, this year could be the right time.

According to Real Estate R114, a total of 146,673 units (excluding rental, based on total households) are scheduled for supply in Gyeonggi Province this year. This is about a 39.13% increase from last year's 105,420 units and is the second-largest supply volume following the record high of 162,653 units in 2015.

By region, Gwangmyeong (12,815 units), Hwaseong (12,182 units), Pyeongtaek (10,987 units), and Osan (10,572 units) each have over 10,000 units planned. Additionally, Anyang, Paju, and Namyangju follow with over 8,000 units, and Uiwang, Yongin, and Suwon with over 6,000 units. On the other hand, four regions?Yeoju, Hanam, Gwacheon, and Gunpo?have no supply plans.

Seven regions including Goyang, Osan, Bucheon, and Dongducheon are expected to supply more than twice the volume compared to the previous year. In Goyang, the supply is preparing to increase by about 114.8%, from 2,439 units last year to 5,239 units this year. Osan, Bucheon, and Dongducheon will also see increases of 185.88%, 127.46%, and 111%, respectively, compared to last year. Gwangmyeong and Guri, which had no supply last year, are scheduled to supply 12,815 units and 4,058 units, respectively. Particularly, Goyang, Bucheon, and Gwangmyeong, which border Seoul and are highly preferred by demand, had limited supply, so this year’s sales performance is attracting attention. Especially in Goyang (Ilsan) and Bucheon (Jungdong), where the first-generation new towns are located, there is high anticipation for the ‘First-generation New Town Redevelopment Promotion Special Act’ pledged by President-elect Yoon Seok-yeol.

Experts believe that the common pledges of major presidential candidates for large-scale supply policies and easing of real estate taxes and loan regulations have influenced the increase in this year’s supply volume. With expectations of deregulation in various areas including loans, construction companies have decided to actively proceed with sales.

Along with the large supply volume, demand supporting it has also increased. According to the Korea Real Estate Agency’s Subscription Home, as of the end of February this year, the number of first-priority subscription savings accounts in Gyeonggi Province was 4,160,937. This is a 13.68% increase compared to 3,660,208 accounts in the same month last year and is the highest level since the housing subscription savings were introduced in 2009.

Regions with high apartment price increases last year were mostly concentrated in Gyeonggi Province. According to KB Real Estate’s housing sales price time series statistics, Osan (49.30%) and Siheung (43.11%) in Gyeonggi showed apartment price increases in the 40% range. Other regions with increases in the 30% range include Dongducheon (39.26%), Anseong (38.52%), Uiwang (37.43%), Pyeongtaek (36.61%), Uijeongbu (36.48%), Ansan (34.60%), Gunpo (33.91%), Suwon (33.01%), Incheon (32.93%), Goyang (32.19%), Hwaseong (31.78%), and Namyangju (31.70%).

Kwon Il, head of the Real Estate Info Research Team, said, "With the new government launching this year, the real estate market atmosphere is expected to change, and a big market is expected to open based on the large supply and demand compared to last year. However, since there is a large supply, it will be more important than ever to discern the quality among them."

Looking at major complexes scheduled for supply in Gyeonggi Province this year, DL E&C will supply ‘e-Pyeonhansesang Jichuk Centum Garden’ in Block B-5 of Jichuk District, Deogyang-gu, Goyang City, Gyeonggi, in May. It consists of 3 buildings, from basement level 1 to 28 floors above ground, with a total of 331 units of 84㎡ exclusive area. It is a post-sale complex scheduled for occupancy in September, allowing quick move-in, and the price ceiling system will be applied, so a reasonable price is expected. Nearby, the GTX-A line (Yeonsinnae Station) is scheduled to open in 2024, greatly improving access to Gangnam. Posco Construction is selling ‘The Sharp Rhythm City’ in Sangok-dong, Uijeongbu City, this month. This complex is the only private sale project within Uijeongbu Rhythm City, consisting of 5 buildings from basement level 2 to a maximum of 25 floors above ground, with a total of 536 units of 60 and 84㎡ exclusive area. Hanshin Engineering is also preparing to sell ‘Geumgok Station Hanshin The Hue’ in Geumgok-dong, Namyangju City, Gyeonggi. It consists of 6 buildings from basement level 4 to 21 floors above ground, with a total of 406 units ranging from 30 to 84㎡ exclusive area, of which 192 units are for general sale. Additionally, Hyundai Construction will supply 809 units of ‘Hillstate Yangju Okjeong Patio Foret’ in Yangju City.