In January, following Seoul’s 1,000 cases
Over 4000 monthly transactions in 7 months
200 million to 300 million lower than the market price
Deregulation, etc. End users ‘Lion’
Seongnam, more than doubled in a month
Gunpo, Goyang, and Gwangmyeong are also recovering
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In January of this year, apartment transactions in Gyeonggi-do exceeded 4,000 in seven months. The Gyeonggi-do apartment market froze with only 2,000 to 3,000 transactions per month in the second half of last year. The Seoul apartment transaction, where the transaction cliff phenomenon was severe, also exceeded 1,000 cases per month in 7 months of last month, and the atmosphere of rapid sale in the metropolitan area is rapidly digested.
According to the Gyeonggi Real Estate Portal on the 13th, a total of 4,000 real estate transactions in Gyeonggi-do in January have already increased compared to the second half of last year (July-December), even though the counting period is regarding two weeks away. Last year, due to concerns regarding a sharp rise in interest rates and falling housing prices, apartment transactions in Gyeonggi-do shrank following 4013 cases in June, followed by July (2917 cases), August (2794 cases), September (2608 cases), October (2723 cases), and November (2723 cases). (3061 cases) and December (3153 cases), etc.
In particular, the rebound of Seongnam was prominent. It is interpreted that this is because Bundang-gu, which was lifted from the regulated area through the 1·3 real estate measures, was included. The number of apartment transactions in Seongnam, which was only 89 in December last year, more than doubled in one month to 181 in January this year. Real estate transaction cliffs continue, real estate brokers explain that the accumulated rush sales are being digested en masse. Mr. A, a licensed real estate agent in Bundang-gu, said, “The asking price of unsold properties has decreased to the level of the first half of 2020, and from the new year, it is released to non-regulation areas, and the mortgage acceptance ratio (LTV) has increased from 40% to 70%, so that more loans can be obtained. “The gap between bids and sellers has narrowed,” he said. In fact, in the second half of last year, only 6 cases of ‘Rainbow 5 Complex Cheonggu’ in Gumi-dong, Bundang-gu were traded for 6 months, but in January this year, 8 cases have already been contracted. Among them, 6 contracts of 58.5㎡ of exclusive area traded in January were all completed at 600 million to 650 million won. The urgent sale is digested, and the lowest asking price has risen to 690 million won. The area recorded a reported price of 905 million won (6th floor) in October 2021. Seohyeon-dong pilot complexes, Bundang’s representative complexes scheduled for reconstruction, also had eight transactions already in January, which is the same as the total transaction volume in the second half of last year.
In addition, apartment transactions are on the rise at the beginning of the year in most areas of Gyeonggi-do. Gunpo apartment transactions in December, which were only 35 cases, increased to 76 cases in January this year, Goyang cases from 172 cases to 286 cases, and Gwangmyeong cases from 52 cases to 74 cases. Mr. B, who runs a real estate brokerage in Hanam, where 111 new contracts have already been signed in January alone, up from 64 in December, said, “There was not a single transaction in the second half of last year, so I was worried regarding closing the business, but the perception that house prices had fallen enough to drop spread among consumers. In the new year, inquiries increased,” he said. “In January alone, we have already signed three contracts.”
Experts explain that in a situation where ‘quick sale’ has increased due to the nature of Gyeonggi-do, where house prices have fallen significantly, demand is increasing and leading to transactions due to expectations for slightly lowered mortgage interest rates and measures for the 1st and 3rd real estate. Lee Eun-hyung, a researcher at the Korea Construction Policy Institute, said, “In Gyeonggi-do, there were many areas where house prices fell in a short period of time last year, and there were many quick sales that were 200 to 300 million won lower than the market price.” diagnosed as Ham Yeong-jin, head of the Jikbang Big Data Lab, said, “Recently, interest rate hikes have slowed, and demanders have expectations that loan interest rates will decrease.” The cliff seems to be resolved a little bit,” he said.
Meanwhile, according to the Korea Real Estate Agency, apartment prices in Gyeonggi-do fell by an average of 10.4% last year. This is a larger drop than the national average (-7.9%) and Seoul average (-7.8%).
