- Gwangmyeong-si, Gyeonggi Province, 84.3% of Houses Over 10 Years Old... No New Supply for Over 2 Years
- GS Construction Unveils 3,804 Units in Cheolsan Jugong 8 and 9 Complex Reconstruction Apartments in Gwangmyeong-si
New apartments are being offered for sale in Gwangmyeong, Gyeonggi Province, for the first time in a while. Since the last new sale in June 2020, this marks the start of new supply after two and a half years, drawing attention to whether the Gwangmyeong real estate market will regain momentum with this offering.
GS Construction plans to sell 3,804 units of the 'Cheolsan Xi The Heritage' apartments through the reconstruction and maintenance project of Cheolsan Jugong Complexes 8 and 9 in Gwangmyeong City, Gyeonggi Province, this December.
This is the first new apartment supply in Gwangmyeong since June 2020, after two and a half years. Especially, with the application of the price ceiling system, the sale price is expected to be set at a reasonable level compared to surrounding market prices, attracting early interest.
Gwangmyeong City has high residential preference due to its geographical advantage close to Seoul, but it has suffered from a shortage of new housing supply. Apartments older than 10 years account for 84.3% (66,728 units) of the total apartment stock (79,154 units), indicating a high proportion of aging housing, while new apartment supply has been limited.
In particular, the recently supplied apartments have been concentrated in Iljik-dong, developed around Gwangmyeong Station, leaving a persistent demand for new apartments in the original downtown areas of Gwangmyeong-dong and Cheolsan-dong, which have superior residential infrastructure.
According to Real Estate 114, the number of general sale apartments supplied in Gwangmyeong over the past 10 years (2012?2022) is 6,401 units. Of these, about 4,400 units, accounting for 70%, were concentrated in Iljik-dong near Gwangmyeong Station, while the old downtown areas of Gwangmyeong-dong and Cheolsan-dong saw only 1,341 and 618 units supplied, respectively. The slow progress of urban maintenance projects such as the reconstruction of Cheolsan Jugong Apartments and redevelopment of Gwangmyeong New Town has been analyzed as a reason for the relatively insufficient supply.
Industry experts expect that although new sales have been scarce in Gwangmyeong, the real estate market will regain vitality starting with this sale, given the traditionally high residential demand in the area.
As of October 2022, Gwangmyeong’s population is about 288,000, showing a continuous decline since breaking below 300,000 in 2020. However, this is attributed to temporary relocation demand caused by reconstruction and redevelopment. On the contrary, the number of subscription savings accounts for housing applications in Gwangmyeong is on the rise, indicating solid local demand. According to the Korea Real Estate Board, as of September 2022, there were 132,462 first-priority subscription savings accounts (based on comprehensive savings), steadily increasing since surpassing 100,000 in 2019.
Some expect that the strong waiting demand in Gwangmyeong will concentrate on the newly supplied 'Cheolsan Xi The Heritage (Cheolsan Jugong Complexes 8 and 9 reconstruction)'.
Since this is the first new sale in two and a half years and the price ceiling system is applied, the sale price is likely to be set at a relatively reasonable level compared to nearby market prices. Accordingly, demand is expected to surge as buyers can secure not only multi-million won price gains but also a safety margin in the unstable real estate market.
'Cheolsan Xi The Heritage' will be supplied in 23 buildings ranging from two basement floors to a maximum of 40 floors, totaling 3,804 units, of which 1,631 units with exclusive areas of 59, 84, and 114 square meters will be offered to the general public. It is within walking distance of Cheolsan Station on Subway Line 7, providing locational advantages for convenient access to major business districts such as Gangnam and Yeouido.
In Gwangmyeong, following 'Cheolsan Xi The Heritage,' construction companies that had been waiting for the right timing are expected to actively start sales.
Gwangmyeong New Town’s 4R and 10R districts are undergoing land price re-verification by the Korea Appraisal Board, and relocation has been completed in Cheolsan Jugong Complexes 10 and 11 as well as Gwangmyeong New Town’s 1R, 2R, and 5R districts, which are now preparing for general sales.
A real estate expert said, “Starting with the reconstruction of Cheolsan Jugong Complexes 8 and 9, the backlog of Gwangmyeong’s sale supply is expected to be gradually released,” adding, “Although the market has been frozen, the success of this new sale will influence the real estate market atmosphere next year.”
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