- Dongtan 2 New Town, House Prices Have Fallen Enough to Support the 'Bottoming Out' Theory
- Office Scarcity Highlighted, New Office Market Also Active
Hwaseong Dongtan New Town, one of the representative areas with a significant drop in housing prices, has recently started to show signs of recovery as inquiries from buyers have increased.
According to the weekly apartment price trend report by the Korea Real Estate Board for the 5th week of January (as of the 30th), while real estate prices in Gyeonggi Province fell by 0.55% over the week, Hwaseong dropped by 1.01%, marking the largest decline within Gyeonggi Province. The continued decline in Dongtan apartment prices has strengthened the "Dongtan New Town housing price bottom theory."
In fact, as this sentiment spreads, the supply of urgent sale apartments in Dongtan New Town is being depleted. Four transactions of 84㎡ apartments at Dongtan Yeoksim Woonyoung Firstville were made last month. The 84A type, which was traded at 960 million KRW in November last year, was sold for 933 million KRW on the 20th of last month. The 84㎡ apartment at Dongtan Yeoksim The Sharp Central City was traded for 1 billion KRW on the 26th of last month, the same as the previous transaction price.
Dongtan 2 New Town was removed from the speculative overheated district designation in November last year, along with Suwon, Anyang, and Ansan Danwon. Once removed from the speculative overheated district, mortgage loans are allowed for houses priced over 1.5 billion KRW, and the loan-to-value ratio (LTV) is relaxed by 10 percentage points: 50% for houses under 900 million KRW and 30% for those exceeding 900 million KRW. The resale restriction period for housing pre-sale rights is reduced from a maximum of 5 years to 3 years, and the re-application ban period for subscription is shortened from 10 years to 7 years.
As the real estate market in Dongtan 2 New Town gradually regains momentum, interest is also growing in the office market.
This is because Dongtan 2 New Town is evolving into the largest advanced self-sufficient city in southern Gyeonggi Province, based on solid large corporations. The biggest background highlighting the self-sufficiency function of Dongtan 2 New Town is the "semiconductor" industry. Dongtan New Town is a semiconductor city. It has the strong industrial backing of Samsung Electronics Hwaseong Campus, and more than 1,000 related companies are active in the area. In November last year, the world's largest semiconductor lithography equipment company ASML decided to invest 240 billion KRW in Hwaseong Dongtan, and KAIST signed an agreement with Hwaseong City to nurture semiconductor talent, a core of future industries.
Recently, with the growth of venture companies and non-face-to-face information technology (IT) companies, the demand for office leases has increased. However, the supply of large office buildings to support this demand is insufficient, leading most experts to view the outlook for office spaces in the metropolitan area positively.
Accordingly, interest in new large office sales centered in Seoul and the metropolitan area has naturally increased, and office sales have continued to sell out quickly.
In February, the office "Dongtan Lake One," constructed by SK Ecoplant near Dongtan Lake Park, was completed in sales within a short period, attracting strong interest from buyers.
Daewoo Construction is receiving continuous contract inquiries for "Dongtan Prugio City Works," a Dongtan Life Office currently on sale at Block 65 of the support facility site in Dongtan 2 New Town, Hwaseong, Gyeonggi Province.
"Dongtan Prugio City Works" consists of two buildings from basement level 1 to 15 floors above ground, with exclusive areas ranging from 29 to 71㎡. It will supply 564 small office units and 31 business facilities. It offers a double view overlooking both Dongtan Lake Park and the city nightscape, a rare feature in Dongtan.
Specialized designs to secure views of the lake park are also notable. Various types centered on small units are configured, allowing small-scale companies or startups to move in easily without economic burden. A terrace floor plan with a high sense of openness will be applied.
Located in front of Dongtan 2 New Town Lake Park, which is emerging as a new center of Dongtan, it offers a relaxed working environment overlooking Dongtan Lake Park. Moreover, employees can relieve work fatigue and focus on their tasks by taking walks and breaks during lunch and other times.
Nearby are various cultural and lifestyle infrastructures such as the Waterfront Complex for leisure and relaxation, the Culture Design Valley, the large-scale shopping and cultural complex Grand Passage, and the Hoguk Park. Therefore, it is an ideal resort-style office with a highly comfortable environment for business and work.
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