1.5 Billion to 900 Million Drop... 'Jun-Seoul' Gwangmyeong Falls Despite Deregulation of Restricted Areas

Iljik-dong Gwangmyeong Station Central Xi Exclusive 84㎡
Price Down 550 Million KRW from Highest Price
Five Complexes Scheduled for Sale This Year... Uncertain Recovery in Buying Demand

[Asia Economy Reporter Kwak Min-jae] The downward trend in housing prices in Gwangmyeong, which had surged due to positive factors such as the Sinansan Line and the Metropolitan Area Express Railway (GTX), continues. In particular, the '1 billion KRW mark,' which was the price floor for the standard-sized apartments in major complexes in Gwangmyeong, has collapsed. Even after the regulatory area was lifted following the announcement of the 1.3 real estate measures, there is no sign of housing prices recovering. To make matters worse, with a total of five complexes scheduled for sale in Gwangmyeong this year, it is analyzed that a short-term recovery in buying demand will be difficult.

Apartment complex near Gyeonggi KTX Gwangmyeong Station.

According to the Ministry of Land, Infrastructure and Transport's real transaction price disclosure system on the 26th, an 84㎡ unit in 'Gwangmyeong Station Central Xi' in Iljik-dong, Gwangmyeong, was traded for 920 million KRW on the 6th. Compared to two years ago in November, when the same size unit was sold for 1.47 billion KRW, setting a record high, this is a drop of 550 million KRW. This represents a decline of about 37% from the highest price.

The 84㎡ unit in 'Gwangmyeong Station Summit Place' in Iljik-dong was also traded for 975 million KRW on the 10th, down 515 million KRW from the highest price of 1.49 billion KRW. Another apartment complex in Cheolsan-dong, Gwangmyeong, 'Cheolsan Raemian Xi,' saw its 84㎡ unit price fall from 1.308 billion KRW in 2021 to 850 million KRW on the 11th.

The head of a real estate agency in Iljik-dong, A, said, "There are many who predict further price drops even when urgent sales are suggested, and many feel burdened by the still high interest rates and prefer to wait and see." He added, "With many new constructions scheduled for sale this year, even lifting regulations may not have a significant effect."

Gwangmyeong City in Gyeonggi Province uses the domestic telephone area code '02,' the same as Seoul, and borders Seoul's Guro-gu and Geumcheon-gu, making it considered a 'quasi-Seoul' location in the real estate market. At one time, the combination of transportation benefits such as the GTX Line B, the Sinansan Line directly connecting to key Seoul areas like Yeouido, Gongdeok, and Seoul Station, and the Gwangmyeong New Town redevelopment project caused apartment prices to soar sharply during the previous price rise period.

However, even Gwangmyeong City, which had rapidly increased prices just one to two years ago, is now experiencing a continued sharp decline in prices as nationwide real estate market sentiment weakens due to the high-interest rate trend. Although the government announced real estate measures on the 3rd and lifted regulatory status for Gwangmyeong, Seongnam, Gwacheon, Hanam, and other areas in Gyeonggi Province, market reactions have been minimal. According to the Korea Real Estate Board, as of the 16th, apartment prices in Gwangmyeong fell by 0.92% compared to the previous week, continuing the sharp decline.

Furthermore, as the transaction freeze intensifies and supply volume increases significantly this year, a recovery in buying demand is expected to be difficult for the time being. A total of five complexes with 15,432 households are scheduled for sale in Gwangmyeong this year: ▲ Gwangmyeong 1R District with 3,585 households ▲ Vermontro Gwangmyeong (Gwangmyeong 2R District) with 3,344 households ▲ Gwangmyeong 4R District with 1,957 households ▲ Gwangmyeong 5R District with 2,878 households ▲ Cheolsan 10·11 District with 1,490 households.

Experts view that the effect of lifting regulatory areas is concentrated more in Seoul than in the Gyeonggi area. Yeo Kyung-hee, chief researcher at Real Estate R114, said, "The increase in housing supply in the metropolitan area and the decline in Seoul housing prices have led to demand shifting to higher-tier areas, which seems to have influenced the price decline in Gwangmyeong." She added, "Additionally, with the large-scale scheduled sales in Gwangmyeong this year, demand is expected to be dispersed, continuing downward pressure on housing prices."