Despite the nationwide real estate market adjustment period, housing prices in Sokcho, Gangwon-do continue to steadily rise. Industry experts analyze that this is influenced by the increasing demand for second houses from non-local buyers, and they predict that not only apartments but also residential lodging facilities will gain popularity.
According to the Korea Real Estate Board's weekly apartment price trend survey time series, as of the end of July this year, Sokcho has experienced 95 consecutive weeks of price increases since October 2020, recording an approximate 23% rise during this period. The number of properties traded in the actual market has also reached an all-time high. According to the Ministry of Land, Infrastructure and Transport, last year, the apartment sales volume in Gangwon-do surpassed 30,000 units for the first time since the survey began in 2006, reaching 30,508 units. Among these, Sokcho accounted for 2,750 units, ranking fourth among cities and counties in Gangwon-do, with non-local transactions making up about 44% or 1,223 units, constituting the majority of trades.
The industry attributes the heat in Sokcho's real estate market to the balloon effect of regulations in the metropolitan area and various large-scale development projects, which have increased demand for second houses from non-locals. Sokcho, a representative domestic tourist destination, became a popular tourist area with excellent accessibility to Seoul following the full opening of the Seoul-Yangyang Expressway in 2017, triggered by the 2018 Pyeongchang Winter Olympics.
In particular, recently, the 'Sokcho Eye,' the only large Ferris wheel located on the beach in Korea, has opened, solidifying its position as a tourist attraction. Additionally, transportation benefits such as the Donghae Northern Line and the East-West High-Speed Railway are ongoing. The East-West High-Speed Railway connecting Seoul, Suncheon, and Sokcho is scheduled to open in 2027. With the opening of the KTX Sokcho Station, it is expected that travel time from Seoul to Sokcho will be reduced to about one hour. Furthermore, the addition of Gangneung Line KTX passengers is expected to boost tourism inflow to the East Coast.
Due to its pristine natural environment and excellent accessibility to Seoul, Sokcho is actively attracting non-local second house buyers. Not only apartments but also relatively less regulated and highly marketable beachfront residential lodging facilities are gaining popularity among investors.
A representative example is the 'Sokcho Howard Johnson' in Joyang-dong, which has recently gained popularity among metropolitan area investors, with remaining units being quickly contracted. This residential lodging facility is located in Joyang-dong, Sokcho City, with a total of 476 units ranging from 22㎡ to 54㎡ in exclusive area. It offers various floor plan types allowing buyers to choose according to their preferences, and some units provide natural views of Cheongcho Lake, the East Sea, and Seoraksan Mountain. Kyobo Asset Trust is the developer, and Daewoo Shipbuilding & Marine Engineering Co., Ltd. is responsible for construction.
The project site is near various central infrastructures of Sokcho City, including residential, tourism, and shopping facilities. Notably, it is close to Sokcho Beach, Expo Tower, Sokcho Central Market, and other representative tourist spots, as well as Daepo Port, a planned marine cable car, a Ferris wheel, and a theme park, attracting a large number of tourists. Additionally, a large supermarket, E-Mart, and Sokcho Express Bus Terminal are within walking distance, providing convenient access to infrastructure.
Especially, Sokcho Howard Johnson applies the Howard Johnson brand of the global hotel group Wyndham, which is expected to lead to rapid activation and enhance investment value. The Wyndham Group, a global hotel brand, operates over 7,500 hotels with approximately 630,000 rooms in 66 countries worldwide, including brands such as Days Inn, Ramada, Wingate, and Wyndham Grand. They are scheduled to manage operations, and unlike the conventional operator-centered approach, a sales-owner-centered management system will be implemented, making it an attractive investment destination with stability and transparency in profits.
Currently, Sokcho Howard Johnson operates two promotional centers in Seoul and Sokcho.
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