Gap Investment Hotspot 'Anseong Jueun Cheongseol' Transactions Stir Again

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The transactions of Jueun Cheongseol Apartment in Jinsari, Gongdo-eup, Anseong-si, Gyeonggi-do, once known as a 'holy place for low-cost gap investment' in the Seoul metropolitan area, are showing signs of revival, drawing attention. This apartment complex attracted a large number of investors trying to avoid real estate regulations during the Moon Jae-in administration.

According to the Ministry of Land, Infrastructure and Transport's real transaction price disclosure system and local real estate brokerage industry on the 21st, the transaction volume of Jueun Cheongseol Apartment, which was around 3 to 6 cases per month from September last year to April this year, surged to 16 cases in May this year, followed by 9 and 8 cases in July and August respectively. Although it does not reach the level of 14 cases per month on average from February to August last year, it shows signs of recovery in transactions since May.

This apartment complex, completed in 2020, consists of 2,295 households. It is a corridor-style apartment composed only of small units ranging from 39 to 59㎡ in exclusive area. In the first half of 2019, the actual transaction price for a 39㎡ unit was formed around 49 million to 65 million KRW, but it soared to a peak of 175 million KRW in September 2021. This was the result of a surge in transactions as investors flocked to avoid regulations because acquisition tax surcharges did not apply to houses with a publicly announced price below 100 million KRW.

However, with the rise in the base interest rate and the real estate market downturn, this apartment also could not avoid a clear price decline starting from May last year. While steady ownership changes continue, the current actual transaction price has fallen to around 100 million to 120 million KRW.

In the market, as the upward trend in housing prices has spread mainly in Seoul this year, there is speculation that the previously stagnant gap investment in this apartment may be stirring again.

A representative from nearby A Real Estate Agency said, "Transactions have increased, but the prices themselves have not changed much," adding, "It seems that new investors are absorbing the sell-offs from existing gap investors." Although prices have dropped from the peak, they are still nearly twice as high as in the first half of 2019 when the initial investment boom occurred, indicating that sellers aiming to dispose of their properties at appropriate levels and buyers expecting price rebounds are reaching a mutual understanding.

However, voices cautioning against premature purchases are also emerging due to the lack of significant positive factors. A representative from nearby B Real Estate Agency said, "It is a mid- to high-rise complex just over 20 years old, so there are no redevelopment prospects," and added, "Although a semiconductor materials and parts complex is planned in Anseong, it is far away."

Meanwhile, the nearby Yongduri Jueun Punglim Apartment, which also attracted demand during the gap investment boom along with Jueun Cheongseol, has seen monthly transaction volumes of only 1 to 5 cases since September last year. Jueun Punglim, which was occupied two years later than Jueun Cheongseol in 2002, is also a large complex of 2,615 households composed only of small corridor-style units.