[Asia Economy Reporter Cha Wanyong] The first-generation new towns located in four areas of Gyeonggi Province (Anyang, Goyang, Bucheon, Seongnam) have a first-priority subscription competition rate about four times higher than other Gyeonggi regions. This is interpreted as reflecting expectations that the value will rise simultaneously once the redevelopment of the first-generation new towns is completed.
According to real estate R114 data on the 17th, a total of 32,910 households were generally supplied in Gyeonggi Province until November this year. Among them, 220,202 first-priority subscriptions were received, recording an average competition rate of 6.7 to 1.
In the four areas including Anyang where the first-generation new towns are located, 1,463 households were supplied and 34,620 subscriptions were received, showing a competition rate of 23.7 to 1. Although the supply accounts for only 4.4% of the total, the number of applicants accounts for 15.7%. The competition rate in other Gyeonggi areas was 5.9 to 1, about a quarter of the four areas.
By region, Goyang had the highest competition rate at 49.9 to 1, followed by Anyang at 15.4 to 1. Bucheon and Seongnam recorded 9.7 to 1 and 3.5 to 1, respectively. Gunpo had no new supply.
The industry analyzes that demand concentrated in nearby areas amid uncertainty about the timing of the first-generation new town redevelopment. Compared to the new towns, the price competitiveness is higher and the entry barrier is lower, attracting actual demand.
According to real estate R114 data as of November, the average sale price per 3.3㎡ in the first-generation new towns is 25.66 million KRW, which is 6.74 million KRW higher than the Gyeonggi average (18.92 million KRW).
Comparing by region, the price per 3.3㎡ in Pyeongchon is 27.77 million KRW, 3.29 million KRW higher than the Anyang average (24.48 million KRW). Ilsan and Jungdong also have prices of 19.73 million KRW and 18.74 million KRW, respectively, forming prices 2.76 million KRW and 0.24 million KRW higher than the averages of Goyang and Bucheon.
A real estate official said, “The government's special law for the first-generation new towns, which was an election pledge, is being delayed, so rather than waiting indefinitely for reconstruction, more people are choosing remodeling or moving. Nearby areas that can share the new town infrastructure practically have residential conditions comparable to the new towns, and once the redevelopment of the first-generation new towns is completed, simultaneous value appreciation can be expected.”
Meanwhile, new supply in areas near the first-generation new towns is also flooding the market. This month, DL E&C and Kolon Global plan to supply ‘Pyeongchon Centum First’ through the redevelopment and new construction project in Deokhyeon District, Hogye-dong, Anyang.
In Bucheon, Ssangyong Construction plans to supply 759 households through the Goean 3D district redevelopment project in January, and Ilsin Construction plans to supply 75 households through the Sosabon-dong street housing maintenance project in February.
In Seongnam, Gyeryong Construction Industry plans to supply 177 households through the Samnam Apartment reconstruction project in January, and in Goyang, Hyundai Construction and GS Construction plan to supply 107 block-type detached houses in Samsong in March.
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