Top 3 Apartment Price Increases Over 1 Year: Incheon, Chungbuk, Gangwon 순

[Asia Economy Reporter Kim Min-young] Over the past year, the area with the highest increase in apartment prices nationwide was Incheon. Its proximity to Seoul and transportation benefits such as the Metropolitan Area Express Train (GTX) appear to have influenced the housing prices due to increased demand.

According to an analysis of KB Real Estate Live On time series data by real estate research firm Realtoday on the 28th, the area with the highest average apartment sale price increase per 3.3㎡ as of April this year compared to April last year was Incheon, which rose by 44.07% over one year. The second highest was Chungbuk with a 43.10% increase, followed by Gangwon with a 35.52% rise.

Following these were ▲Chungnam 30.11% ▲Jeju 29.15% ▲Gyeonggi 28.55% ▲Gyeongnam 37.81%, while Seoul showed the lowest increase rate at 19.14%. By region, the rates were ▲Capital area 22.65% ▲5 metropolitan cities 20.03% ▲Other provinces 27.94% in order.

In the case of Incheon, its proximity to Seoul and successive transportation benefits such as GTX seem to have influenced housing prices. Realtoday analyzed that major development projects such as Geomdan New Town, Cheongna International City, and Songdo International City have been progressing, increasing demand and thus raising prices.

Chungbuk and Gangwon are analyzed to have attracted investors due to relatively low prices and being non-regulated areas. As of April last year, the average apartment sale prices in Chungbuk and Gangwon were 6,862,000 KRW and 6,841,000 KRW respectively, ranking 3rd and 4th lowest among the 17 cities and provinces nationwide. The 1st and 2nd lowest were Gyeongbuk (6,587,000 KRW) and Jeonbuk (6,661,000 KRW).

An industry insider said, “Seoul, where housing prices have already risen significantly, shows a relatively low increase rate due to perceptions of a peak and financial burden. Therefore, demand seems to have concentrated in areas close to Seoul with relatively less financial burden and expected future value, leading to price increases.”

However, apartment prices in Incheon have recently continued to decline. According to the Korea Real Estate Board, Incheon apartment prices fell by 0.08% up to the second week of May. The recent decline has also accelerated. As of the 9th, Incheon apartment prices recorded -0.04%, turning from stable to a decline. The Real Estate Board analyzed that additional interest rate hikes and contraction in the jeonse (long-term lease) market appear to have influenced the price drop.