The Decline Widens in Bundang and Ilsan... President Yoon Also Says, "Please Speed Up the 1st Generation New Towns"

Apartment Prices Drop Further in the 4th Week of August

An apartment complex in Ilsan New Town, Goyang-si, Gyeonggi-do

The apartment prices in the first-generation new towns, which have been embroiled in controversy over delays in redevelopment projects, are faltering. While apartment prices in the Seoul metropolitan area have fallen at the largest rate in about 10 years, Goyang City and Bundang-gu in Seongnam City, where the first-generation new towns are located, led the decline. The government repeatedly emphasized the smooth progress of the projects, and even President Yoon Seok-yeol ordered the swift promotion of the projects.

According to the Korea Real Estate Board on the 26th, apartment prices in the Seoul metropolitan area for the fourth week of August recorded -0.18%, widening the decline compared to the previous week (-0.12%). The decline in apartment prices in the metropolitan area is the largest in 9 years and 7 months since the -0.19% recorded on January 14, 2013.

Among the metropolitan areas, the first-generation new towns, suffering from the controversy over delays in the government's redevelopment projects, experienced a significant drop. In Goyang, where Ilsan New Town is located, the decline doubled from -0.06% to -0.12%, and in Bundang-gu, Seongnam City, where Bundang New Town is located, the decline widened from -0.07% last week to -0.13% this week.

In Gunpo City, where Sanbon New Town is located, the decline deepened from -0.13% last week to -0.16% this week. In Anyang, where Pyeongchon New Town is located, the decline expanded from -0.12% to -0.19%, and in Bucheon, where Jungdong New Town is located, it widened from -0.07% to -0.12%.

This is interpreted as an effect of increased disappointment sales as the government announced that the new town redevelopment master plan would be prepared by 2024, later than residents originally hoped.

According to the real estate information platform Asil, the number of apartment listings in Bucheon City increased by 4.4% from 5,903 to 6,147 in the past month (as of the 25th). In Goyang City, Ilsanseo-gu rose by 4.1% from 3,453 to 3,596, and Ilsandong-gu increased by 3.5% from 2,726 to 2,823. Gunpo City (+2.8%) and Anyang City Dongan-gu (+1.5%) also saw increases, while Bundang-gu in Seongnam City, among the first-generation new towns, slightly decreased from 3,790 to 3,722.

Recently, residents of the first-generation new towns have even shown signs of collective action, fearing that the redevelopment projects might be delayed.

In response, President Yoon Seok-yeol personally ordered Minister of Land, Infrastructure and Transport Won Hee-ryong to swiftly prepare plans. President Yoon attended a workshop where members of the People Power Party and cabinet members gathered the day before. Upon seeing Minister Won, President Yoon said, "Please quickly create the redevelopment plan for the first-generation new towns." Minister Won immediately responded loudly, "I understand well."

The Ministry of Land, Infrastructure and Transport stated its position to proceed with the first-generation new town redevelopment projects without setbacks. The ministry plans to issue a research service contract for the first-generation new town redevelopment master plan in September and announced that it will accelerate the project speed through meetings between the minister and the heads of the five local governments of the first-generation new towns on September 8.

The ministry emphasized, "The government will directly meet with local governments to listen to the opinions of local governments and residents and actively support the redevelopment of the first-generation new towns to proceed at a brisk pace." Minister Won also said in a press conference on the 23rd, marking his 100th day in office, "I publicly promise, putting my ministerial position on the line, that there will be no delays or setbacks in the redevelopment schedule of the first-generation new towns."

Meanwhile, Gyeonggi Province, which has jurisdiction over the first-generation new towns, has also launched its own redevelopment support. On the 24th, Gyeonggi Governor Kim Dong-yeon visited the Saetbyeol Village Sambu Apartment in Bundang, Seongnam City, and announced the 'Gyeonggi Province Comprehensive Measures Related to First-Generation New Town Redevelopment.' He said, "I will responsibly do what I can within my authority," and previewed ▲ the formation of a dedicated organization directly under the governor ▲ financial support for urgent redevelopment projects ▲ an investigation into aging conditions ▲ and the establishment of redevelopment development directions.