"Benefiting from SK Hynix" Cheongju Apartment Transactions Surge as Prices Jump 100 Million Won in 3 Days [Real Estate AtoZ]

Heungdeok-gu Apartment Transactions Rise by 34.1%
"Some Prices Jumped Over 100 Million Won in Just a Few Days"
SK Hynix Cheongju M15X Fab
Chungcheong Province Metropolitan Express Railway (CTX) Project as a Positive Factor

A bird's-eye view of the SK Hynix Cheongju M15X fab (factory) located in Cheongju, Chungcheongbuk-do. SK Hynix

Following the October 15 real estate measures, the apartment market in Cheongju, Chungcheongbuk-do, has begun to show signs of activity. As gap investment (purchasing with a lease in place) has become difficult in major areas of the Seoul metropolitan region, buying sentiment has revived in the Cheongju market, which is close to Seoul and offers various positive factors. However, experts believe this is either a temporary or localized buying trend and predict it will be difficult for the impact to spread throughout the entire regional market.

According to the Ministry of Land, Infrastructure and Transport's actual transaction price disclosure system on November 18, the number of apartment transactions in Cheongju for the month following the October 15 measures (October 16 to November 14) totaled 1,018. This represents an increase of 26.6% compared to the 804 transactions in the previous month (September 16 to October 15). The Cheongju apartment market has drawn attention since the October 15 measures. Gap investment is still possible, and there is no 600 million won limit on mortgage loans.

Interest is particularly high in Heungdeok-gu within Cheongju. During this period, the number of apartment transactions in Heungdeok-gu rose by 34.1%, which is 7.5 percentage points higher than the overall Cheongju increase of 26.6%. Compared to other districts-Sangdang-gu (8.7%), Seowon-gu (29.3%), and Cheongwon-gu (29.0%)-the increase in transaction volume was relatively larger.

High-quality jobs and transportation infrastructure comparable to the Seoul metropolitan area are attracting investment demand. In Heungdeok-gu, in addition to the existing SK Hynix Cheongju Campuses 1 to 4, the "Cheongju M15X fab (factory)"-which is set to focus on high-bandwidth memory (HBM) production-will also be established. The "Chungcheong Region Metropolitan Express Railway (CTX) project," which will connect Daejeon, Sejong, Osong Station, and Cheongju Airport, is underway. Utilizing the existing Gyeongbu Line could further improve access to Seoul.

An official from A Realty in Heungdeok-gu, Cheongju, said, "Since the October 15 measures were announced, we have been receiving investment inquiries not only from within Cheongju but also from other regions, and there are apartments that have increased by more than 100 million won in just a few days." The official added, "Most of the outside investors are seeking gap investments." The Shin Young Jewell City 1st complex in Bokdae-dong, Heungdeok-gu, which is considered a prime apartment, recorded a price of 1.08 billion won for a 152-square-meter exclusive unit on October 14. Just three days after the measures were announced, on October 18, it was traded at 1.19 billion won, an increase of more than 100 million won.

Since the October 15 measures, similar phenomena have been observed in other regional real estate markets, including Cheongju. Daegu and Busan are notable examples. According to a survey by the Housing Industry Research Institute of housing business operators, the apartment occupancy outlook index for November in Daegu and Busan rose by 5.9 points and 4.6 points, respectively, compared to the previous month. This is in stark contrast to the Seoul metropolitan area's index, which fell by 17.1 points. This index predicts whether people who have purchased apartments will be able to pay the full balance and move in as scheduled.

Kwon Youngsun, Team Leader at Shinhan Bank Real Estate Investment Advisory Center, stated, "With the current trend favoring owning a single high-quality property, it will be difficult for a strong balloon effect to occur." He added, "If gap investment is possible and price increases can be expected in areas with prices similar to the outskirts of the Seoul metropolitan area, investment demand could emerge, especially for newly built apartments."