Since the announcement of the first phase new town (Bundang, Ilsan, Pyeongchon, Jungdong, Sanbon) redevelopment leading district, changes in housing prices are occurring rapidly. Prices for designated leading district complexes have risen in both asking and actual transaction prices, while those that did not qualify are seeing asking prices drop and lower priced listings emerge.
According to the Ministry of Land, Infrastructure and Transport and real estate industry reports on the 14th, complexes that had a high likelihood of being selected as leading districts but were eliminated are seeing listings priced lower than previous transaction prices. The 84 square meter unit at Samsung-Hanshin Apartment in Bundang, Gyeonggi Province, was sold for 1.67 billion won on the 16th of last month, but current listings are trending around 1.59 billion won.
The 84 square meter unit at Bundang Park Town was sold for 1.5 billion won in September, but current prices have formed in the range of 1.35 billion won to 1.46 billion won. This contrasts with the fact that the 84 square meter unit at Yangji Village Complex 6 in Bundang, which was selected as a leading district, was sold for 1.73 billion won in August, with current asking prices set around 1.8 billion won.
Not only in Bundang, but also in Ilsan, the 134 square meter unit at Hukok Village Complex 8 has listings dropping 40 million won from the last transaction price of 760 million won to 720 million won. The asking price for the 84 square meter unit at Gangchon Village Complex 1 is similarly set 35 million won lower at around 660 million won compared to the last transaction. The listing for the 84 square meter unit at Saetbyeol Village Hanyang Complex 6 in Pyeongchon dropped to 500 million won, down 50 million won from the previous transaction price of 550 million won.
Local real estate agents explained that the combination of being excluded from leading districts and loan restrictions has caused a temporary decline in asking prices. An official at A real estate agency in Seohyun-dong, Bundang-gu, Seongnam City, noted, "The market is largely frozen due to loan regulations rather than the exclusion from leading districts, and while there may be cases of disappointment leading to lower prices, it is too early to conclude that prices dropped due to asking prices."
An official at B real estate agency in Sunae-dong, Bundang-gu, said, "This year, the expectation for leading district selection led to continuous rises in transaction prices for redevelopment complexes," adding, "There is a significant sense of disappointment among some complexes that were certain to be selected but ended up being eliminated. Although the overall real estate market is subdued, some complexes have seen asking prices steadily decline following their exclusion."
If uncertainty grows during the winter due to the state of emergency and impeachment circumstances, there are forecasts that the decline in transaction prices for complexes excluded from the first phase new town leading district will continue. Experts explained that although the government announced plans for sequential reorganization every year following the first selection of leading districts, price drops can be expected due to volatility in asking prices and delays in reconstruction schedules depending on the political situation.
Park Won-gap, a senior specialist at KB Real Estate, mentioned, "The entire market is currently in a correction phase, and given the significant political uncertainty, a downward trend is expected for complexes designated as leading districts. However, since eliminated complexes have plans for sequential reorganization, there is still hope that they won't experience a significant drop in prices."
Ko Jun-seok, head professor at the Sangnam Management Institute of Yonsei University, stated, "If the reconstruction leading district projects become sluggish due to the political situation, even the selected complexes will undergo price adjustments, meaning that those eliminated will face greater adjustments." He added, "Considering the interplay of loan regulations and the impeachment situation, a downward trend is expected to continue for some time."