Yongin Apartment Prices Jump 200 Million Won in a Month... Rebound Movements Across the Seoul Metropolitan Area

While unsold housing units are surging in provincial areas, some apartment complexes in Seoul and various parts of the metropolitan area are seeing a rebound in prices. In certain regions, prices have risen by more than 200 million KRW in just one month.

[Image source=Yonhap News]

On the 10th, real estate research firm Realtoday analyzed the Ministry of Land, Infrastructure and Transport's actual transaction price disclosure system and found that the 157㎡ unit at Seongbok Xi 2nd Phase in Beodeulchi Village, Yongin-si, Gyeonggi-do, was sold for 1.06 billion KRW (8th floor) in April. This is more than 200 million KRW higher than the March transaction price of 850 million KRW (4th floor).

Also, an 84㎡ unit at Siheung Central Prugio in Siheung-si, Gyeonggi-do, was sold for 720 million KRW (29th floor) in April. This is the highest price since the peak in the first half of 2021 during the real estate boom (863 million KRW on the 26th floor / 840 million KRW on the 47th floor).

Similarly, an 84㎡ unit at Cheongna Central Aileen’s Garden in Seo-gu, Incheon, which had been priced around 590 million to 650 million KRW from late last year to early this year, was sold for 710 million KRW (30th floor) in March. This marks a notable recovery compared to the weakened buying demand at the end of last year and early this year.

[Image provided by Real Today]

The upward trend in apartment prices in the metropolitan area is also reflected in the indicators. According to the Korea Real Estate Board’s apartment actual transaction price index, the average sale price per square meter for apartments in the metropolitan area has steadily increased: ▲6.61 million KRW in November 2022, ▲6.733 million KRW in December 2022, ▲7.212 million KRW in January 2023, and ▲7.558 million KRW in February 2023.

Experts attribute the increased buying demand to factors such as the launch of the special Bogeumjari Loan, the decline in real estate mortgage loan interest rates by banks, and benefits allowing up to 80% LTV for first-time homebuyers, which combined with reasonable prices have stimulated demand. Additionally, the price drop during the downturn has also contributed to boosting buying interest.

A Realtoday official said, “The metropolitan area already has a lower price burden compared to Seoul, and the government’s multiple relaxations of real estate regulations since early this year are gradually showing effects. Furthermore, since the government’s regulatory focus is centered on the pre-sale market, buyers aiming to purchase a home or invest should pay attention to branded large-scale apartment complexes.”