After experiencing a sharp downturn in the second half of last year, the metropolitan area housing market has revived with a turnaround this year, creating a positive outlook for the second half among industry insiders.
According to Korea Real Estate Board’s Cheongyak Home, the average competition rate for first-priority applicants for apartments in the metropolitan area was 3.3 to 1 in the second half of last year (July to December), whereas from January to August this year, the average competition rate for first-priority applicants in the metropolitan area rose to 12.26 to 1, about four times higher.
Since first-priority applicants in the housing subscription market must meet certain conditions such as subscription period and deposit amount, they tend to be cautious when applying. The surge in first-priority applicants indicates a heightened interest in housing subscriptions and reflects consumers’ strong expectations for recovery and changes in the housing market. This can be interpreted as a positive market sentiment.
The shift in the housing subscription market atmosphere occurred because, in January this year, the government lifted regulations on metropolitan areas except for some parts of Seoul (Gangnam 3 districts and Yongsan district). With the removal from regulated areas, burdens related to subscription qualifications, re-winning restrictions, and resale restrictions disappeared, lowering entry barriers and encouraging more demanders to apply.
However, the deregulation is not the sole decisive factor for the metropolitan housing market turnaround. Another key reason is the ongoing upward trend in housing prices. The pressure to raise prices due to increased raw material costs has pushed demanders to secure their homes quickly, stimulating subscription applications. This upward price trend is expected to continue, spreading a sentiment among demanders that “now is the cheapest.”
In fact, according to the private apartment price trend provided by HUG (Housing and Urban Guarantee Corporation), as of the end of July, the average price per 3.3㎡ for private apartments nationwide was 16.25 million KRW, an 11.8% increase compared to the same month last year (14.53 million KRW).
A real estate expert said, “Prices of raw materials necessary for apartment construction, such as cement, continue to rise, which is expected to impact housing price increases,” adding, “In this situation, the sorting of good and bad properties in the metropolitan housing market is intensifying, and despite fierce competition, properties with high holding value, good locations, and product competitiveness are attracting much attention.”
Meanwhile, the Siwha MTV area in Siheung City, Gyeonggi Province, is gaining attention as a representative city of the southwestern metropolitan area through continuous development. For example, the Siwha MTV Prugio The Ocean, which was sold in May, was completely sold out in a short period, showing a hot market atmosphere.
Also, in October this year, Hyundai Construction plans to launch “Hillstate The Wave City” in Siwha MTV, drawing attention.
Hillstate The Wave City is located in Jeongwang-dong, Siheung City, Gyeonggi Province, and consists of a large complex with 851 apartments ranging from 60 to 85㎡ in exclusive area, 945 officetels ranging from 84 to 119㎡, totaling 1,796 households. In October, only the 851 apartments will be offered first. This complex will apply the price ceiling system, ensuring reasonable prices.
Hillstate The Wave City enjoys a double view premium with its location overlooking the West Sea and Siwha Lake, and is situated right in front of Siwha Narae Elementary, Middle, and High Schools, providing a safe walking school commute environment. Additionally, Seoul National University Siheung Campus (scheduled for 2025) and Korea Polytechnic University are nearby, and a high-quality educational environment is expected through the formation of nearby academies.
Moreover, it offers a premium of proximity to workplaces with convenient commuting to Siheung Smart Hub, a cutting-edge industrial complex based on the 4th industrial revolution and knowledge industries, as well as Ansan Banwol Special Industrial Complex and Incheon Namdong National Industrial Complex.
Furthermore, it is equipped with an extensive transportation network. National Route 77, Gongdan-daero, Pyeongtaek-Siheung/West Coast Expressway, and Yeongdong Expressway are nearby, and various transportation options such as Subway Line 4 and Sosa-Wonsi Line make travel across the country convenient. In addition, the metropolitan area’s 2nd ring expressway (Incheon to Ansan section) project recently passed the Ministry of Land, Infrastructure and Transport’s Songdo tidal flat activity council review, accelerating the project, and the Shinansan Line (Ansan-Siheung-Yeouido) double-track railway (scheduled to open in April 2025) is planned, improving access to Seoul Gangnam and other metropolitan areas, further enhancing future transportation networks.
High future value is also expected from various projects underway around Geobukseom Island in Siwha MTV. Siwha MTV is a high-tech industrial complex being developed by Korea Water Resources Corporation with a budget of 3.6003 trillion KRW, focusing on knowledge-based industries such as research and development, distribution support functions, and tourism and leisure. In July this year, Geobukseom-dong was newly established, and since the end of August, a “regional specialized development project plan establishment and Siwha MTV special zone designation research service” aimed at revitalizing the Geobukseom commercial district and tourism has been steadily progressing.
Already, the world’s largest artificial surfing park, “Wave Park,” the first of its kind in Korea, has opened on Geobukseom Island, and linked to this, the global leisure shopping facility “Bonita-ga,” where various marine activities can be enjoyed, was completed in April this year. In addition, large-scale national projects such as the marine-themed “Marine Ecology Science Museum” (scheduled for 2024) and “Aqua Pet Land” are underway nearby, and infrastructure such as Homeplus and Siwha Narae Dullegil trail is abundant, positioning the area as a key axis of the West Coast tourism belt in the future.
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