Apartment prices in Dongtan New Town, Hwaseong, Gyeonggi-do are on a sharp decline. While house prices are falling not only in Seoul but also throughout the metropolitan area, the drop in Dongtan New Town is particularly steep.
The real estate industry predicted a further decline within this year, saying that house prices are falling sharply due to sluggish investment demand, such as expectations for a low house price rise due to the bombing of multiple home owners.
According to the real transaction price disclosure system of the Ministry of Land, Infrastructure and Transport on the 16th, 59 square meters of ‘Dongtan Demonstration Daeun Village World Meridien Peninsula Yubora’ in Bansong-dong, Hwaseong, Gyeonggi-do was traded for 410 million won (2nd floor) on the 1st. Although there is a possibility of special transactions such as gifting through direct transaction, the price is only half of the previous highest price (790 million won).
Cheonggye-dong’s ‘Dongtan Station KCC Switchen’ dedicated 84 square meters was also changed to 460 million won, half of the 83 million won reported on the 2nd. This is also a direct transaction with a high possibility of a special transaction, but the market accepts it differently than before. Unlike in the past, the direct transaction price is affecting the market price.
A representative of an authorized real estate agency near Dongtan Station said, “There have always been direct deals that are hundreds of millions of won cheaper than the market price.
The price of an 84-square-meter apartment in the Dongtan New City area has fallen by 300 million to 400 million won from its peak. The 84 m² dedicated to the ‘Dongtan Station Demonstration Woonam Firstville Apartment’, which is considered a major complex, was also traded for 1 billion won, 360 million won lower than the latest reported price.
The decline in apartment prices in Hwaseong-si due to the sharp drop in Dongtan New Town is the highest in the country this year. According to the Korea Real Estate Agency, apartment prices in Hwaseong fell 4.94% this year, the highest in the metropolitan area, and in the nation, it is the third following Sejong (-7.11%) and Daegu Suseong (-5.18%).
The real estate industry cited an increase in volume and sluggish investment demand as the background for the sharp decline in Dongtan New Town.
Dongtan New Town is an area that rose relatively late during the real estate rise. It has surged in the short-term in the last 1-2 years on the back of good traffic such as the Metropolitan Express Railway (GTX). As the real estate market goes down, the house price bubble is rapidly disappearing.
In addition, the realization of profits for multi-family dwellings is also a factor contributing to the decline in house prices. An official from the local real estate industry said, “It is often said among investors that selling as soon as possible is a way to get even a little more profit.”
The industry predicted that house prices in Dongtan New City would continue to decline. This is because investment demand inflow is limited due to low expectations for a rise in house prices while the market continues to decline due to interest rate hikes.
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Koh Jong-wan, head of the Korea Asset Management Research Institute, said, “The Dongtan New Town area has a lot of land to supply housing, so there are always concerns regarding supply.” .
Provided = News 1
